Few things are as frightening as opening the mailbox and finding a letter from the IRS, especially when you know you owe them money! The much-feared IRS does not contact taxpayers just to say hello. It’s not known for being kind, gentle, and understanding. Receiving communication from them is not likely to be good news.
When your heart stops pounding, and you get the courage to open the letter, you get another shock. The IRS says you owe a lot of money. It’s an amount you cannot possibly afford. So what do you do, and how do you react?
The steps you take next could make all the difference. Here are some immediate actions you need to take right away.
Step #1 – Stop Panicking, Take Action
If you owe back taxes, our firm can help negotiate with the IRS for a payment plan or to settle your tax debt for a lower amount. Call us today. Our law firm can navigate the IRS maze so that you stop worrying and not have to face them all alone.
If you think you don’t owe them, you need to make a case for why you think the assessed taxes are wrong. You will need to back it up with proper documentation and proof. Sometimes, the letter you received from the IRS can be a result of a discrepancy, meaning there is a mismatch between what was reported on your return and the figures the IRS received through other means. There could be many reasons for this discrepancy. There could be an innocent and inexpensive explanation and resolution.
Getting a letter from the IRS is not fun, but it is not the end of the world either. Even if you owe the taxes the IRS says you do, you may be able to negotiate a payment plan or if appropriate an offer in compromise – a negotiated settlement, sometimes a much lower amount. Getting professional legal help can make a big difference.
Step #2 – Find the Tax Return in Question
The communication you received from the IRS will reference a specific tax year, so finding and reviewing that return as quickly as possible is important. Hopefully, you have retained records that include your recent tax returns, either in paper or electronic form. If not, you can request a copy from the IRS or contact your tax preparer.
Once you have your tax return in hand, you can review it carefully, looking for the discrepancies in question and seeking out your backup information. The problem could be something like a capital gain you forgot to report or a transposed number as you were entering your income information. Gather all the information and have it ready to bring to your appointment with a tax lawyer.
Step #3 – Do Your Own Calculations
Now that you have your tax return and your backup documentation available, it is time to do some number crunching. This process can be a long and frustrating. We guide our clients through this process when they work with us. The clock is ticking, and interest and penalties may continue to accumulate. Therefore, don’t wait too long to respond.
There should be a deadline listed on the form you received from the IRS. Be sure to check it and make sure you can respond by the due date. Do not forget to allow time for mailing and delivery, even if you plan to send the documents overnight.
Step #4 – Don’t Contact The IRS Directly, Contact Our Law Firm And Get The Protection You Need
The IRS is not on your side, their primary goal is to collect the taxes they believe you owe. The IRS has a number of programs in place to lower the amount owed or for payment plans. However, their job is to collect money, not to represent you. Don’t confuse them being professional or polite with them advocating for you and helping you determine what is best for you in light of all of your circumstances. Remember, anything you say to the IRS can and will be used against you.
By seeking the services of a law firm like ours that focuses on tax resolution, you will gain access to a world of knowledge, including information about programs that could save you thousands of dollars and get you back on the good side of the IRS. Also, you won’t be facing the IRS all along. The sooner you contact our law firm the better off you will be.
Dealing with the IRS is rarely a pleasant thing to do, but ignoring a tax due notice will not make it go away. Delaying will just make a bad situation even worse. So, it is important to act quickly. The good news is this law firm exists for this very purpose. We help people take control of their tax situation so that their future is not ruined. You can resolve your tax debt without sacrificing the rest of your entire future – the rest of your financial life. We help people get their life back from the IRS!