As the IRS starts to crackdown extensively on delinquent taxpayers, more and more people are dealing with IRS tax problems. IRS issues can be costly, complicated, and overwhelming, from excessive tax debt to unexpected penalties. The IRS has an army of employees eager to get your money. You can safeguard your earnings by escaping harsh fees with the services of a Tax Specialist and some basic knowledge of taxes.
Be aware that you’re not alone if you’re dealing with an IRS problem. Thousands of Americans get IRS notices or are not able to settle their taxes on time every year. Typically, the IRS is the one at fault and fails to provide accurate information on your rights as a taxpayer. You must be persistent and knowledgeable when addressing the IRS. You can pursue the course of action that is in your best interest if you are informed of your options and you are aware of your rights.
One common tax issue is being unable to pay your taxes on time, resulting in excessive penalties and interest. You can explain why you can’t settle the taxes and request for an extension utilizing Form 4868. In the case of a financial crisis, it is better to utilize the Form 9465 to arrange an Installment Agreement. This stops the IRS from pursuing harsh methods such as a wage garnishment or seizure of your properties.
Having penalties added to your tax bill is another common IRS tax problem. Penalties can be added to taxes already settled, and the IRS can charge you at will with more than 140 penalties. Penalties can range between 10% to 100% of the amount owed. The IRS assesses penalties for a multitude of reasons, including mistakes on tax returns, filing late, and settling late. Fortunately, there are some options for avoiding penalty fees.
The best way to address IRS tax problems is to get a Tax Specialist. This specialist should be familiar with the numerous complicated loopholes of the tax law such as an attorney, an accountant, or an ex-IRS agent. Find a Tax Specialist with a good track record and excellent experience in your locality.
When you understand your options, it’s simpler to deal with IRS tax issues. For tax penalties, you can normally file a Penalty Abatement. With the help of a Tax Professional, it isn’t always simple to qualify for abatements. If you do your research first, though, it’s possible to make a Penalty Abatement Request successfully on your own. Problems such as not reporting income, paying taxes late, and filing taxes late qualify for abatements. Documented events that would hinder a taxpayer such as a natural disaster, a death in the family, or being hospitalized are valid reasons. To file a Penalty Abatement Request, you must address a letter to the Penalty Abatement Coordinator at your local IRS Service Center. Provide evidence of your excuse in the form of insurance statement, a death certificate, or a doctor’s letter. A copy of the IRS notice informing you of the penalty should also be furnished.