There is nothing much more frightening than receiving a letter or phone call from the IRS. Founded in 1862, the powerful government entity has brought down the likes of Al Capone and Leona Helmsley.
If you have been contacted by the IRS because you owe back taxes, and you are unable to pay the full bill, you should contact the IRS to make payment arrangements. You may also want to hire a tax attorney.
There are a few other steps you can take to make sure your interactions with the IRS go smoothly.
Make Sure it is Not a Scam
The internet has allowed for the proliferation of various money scams. Thieves will often call unsuspecting taxpayers and tell them that they must pay money now or face jail time. They may ask for a credit card or bank account number or tell you to pay your bill via the internet.
In reality, the IRS will almost always contact you by mail. They will generally only call you if they have already written to you. In some cases, they may send a certified letter.
Call the IRS Right Away
A legitimate letter from the IRS will bear the Department of the Treasury’s letterhead. It will normally tell you that you owe money and ask you to pay the bill or call in or go online to make payment arrangements. The sooner you call, the better off you will be. The longer you wait, the more penalties you are likely to receive.
Review Your Letter for Any Mistakes
If you feel that you do not owe the money you are being asked to pay, you will want to let the person you speak to at the IRS know about it. They will tell you what documentation you will need to establish that you have already paid the money in question or that you never owed it in the first place.
If you dispute a debt with the IRS, you will be expected to write them a letter stating why you believe the debt is not valid. It is a good idea to contact a tax lawyer and have them write a letter for you.
IRS Audits
Sometimes the IRS will contact you to simply audit your return. An audit is an examination of an individual or business tax return. Audits are performed to make sure a person has been honest about the amount of money they make. They will also want to make sure that any losses claimed on a tax return are accurate.
When you are audited, the IRS will ask to see your W-2s, as well as receipts you have for any write-offs that you have claimed.
What to Look for in an Attorney
It is always advisable to hire a tax attorney if the IRS cannot make a payment plan with you or if you owe over $10,000. You can find them listed under tax attorneys or Everett bankruptcy lawyer.
Your lawyer should have years of experience in dealing with the IRS and a background in tax law. They should also have an excellent reputation with the state bar.
Hearing from the IRS can be nerve-wracking, but a good attorney can help you make a payment plan and get back on the right track.
