IRS Tax Problems and How To Address Them

The IRS wants your money as tax time draws nearer. You will find yourself overwhelmed by complex IRS issues such as tax debt and penalties. You can prevent these by consulting a Tax Specialist and using your basic knowledge on taxes.

Thousands of Americans face IRS issues every year, so you're not alone. It's often the IRS's mistaken. That's why you must be aware of your rights and your choices so you can pursue the best course of action.

Among the most common tax problems people meet is being unable to settle the amount owed in time. Documenting why you can't pay the taxes and filing an extension through the Form 4868 is the simplest fix to this issue. When taxes are not paid, heavy interest and penalties occur. If you are experiencing a financial crisis, an extension normally won't be of benefit. In this case, you have to negotiate an Installment Agreement with the IRS by filing Form 9465. The IRS is prevented from enforcing actions through property seizure or wage garnishment and you can choose the amount you can spare to pay each month if you request for an Installment Agreement.

Another common issue faced by those dealing with IRS tax issues is incurring penalties added to your tax debt. There are over 140 penalties the IRS can charge you with at will, and penalties can even be added to taxes already paid. Penalties can range anywhere from 10% to 100% of the amount owed. The IRS assesses penalties for a multitude of reasons, including mistakes on tax returns, filing late, and paying late. Fortunately, you can avoid penalty fees with several options.

The best way to deal with IRS tax issues is to employ a Tax Specialist. This specialist must be familiar with the many complex loopholes of the tax law like a lawyer, an accountant, or an ex-IRS employee. A local Tax Specialist with excellent experience and a good experience is advised.

Dealing with IRS tax problems becomes considerably easier when you know your options. You can often request a Penalty Abatement for tax penalties. Abatements are usually simpler to qualify for with the assistance of a professional Tax Specialist. But it is possible to prepare a successful Penalty Abatement Request on your own if you do your homework first. Abatements are offered for issues such as filing taxes late, paying taxes late, or not reporting income. Documented circumstances that would hinder a taxpayer like a natural disaster, a death in the family, or being hospitalized are accepted reasons. You must address a letter to the Penalty Abatement Coordinator at your local IRS Service Center to file a Penalty Abatement Request. Give proof of your excuse in the form of insurance statement, a death certificate, or a doctor's letter. You have to also attach a copy of the IRS notice informing you of the penalty.