When an IRS problem lingers along and does not get fixed, it merely turns into a bigger mess of trouble. There are a few sure things about IRS problems. They don’t fix themselves or just go away, so a person really needs to hire a professional to fix them. They cause people a great deal of pain. That pain can be financially, emotionally and physically. They only get worse over time so waiting is not a solution. The longer a person waits to fix them, the more difficult they are to fix. In addition, the longer a person waits to fix them, the more they will cost to fix.
Here are some of the more common IRS problems that people encounter:
Issue: Failure to file federal tax returns for several years.
When a person doesn’t file tax returns the IRS normally files substitute returns for them, which generally ends up with an amount due to the government. These substitute returns can swing a person from getting a refund to owing money. It can also result in a person owing more money than they would normally owe. This is because the IRS calculates their federal return based on limited information that doesn’t include deductions and exemptions. If Uncle Sam determines that a person acted willfully in their failure to file their federal returns, then that can be a criminal issue. Having unfiled federal returns will lead a person into the collections system.
Solution: Have a Representative contact the Internal Revenue Service to get back into federal tax compliance immediately by getting back returns filed.
Issue: Getting letters and notices in the mail about the IRS problem.
Once a person falls into the Automated Collection System, which is commonly referred to in an abbreviated term called ACS, a short series of letters are sent out. Ignoring these letters will ultimately lead to a garnishment of a person’s wages, a levy upon their bank account and the issuance of a federal lien or other asset seizure.
Solution: Have a Representative contact the Collection Division and work out a collections alternative plan.
Issue: Getting Audited.
The audit is an IRS problem that people usually dread and fear the most. Make no mistake about it; people are audited for the express purpose of generating revenue for the United States Treasury Department. It is not done to make sure a person’s federal return was done accurately. An audit is conducted to get more money from a person. An IRS audit is also called an examination or review of a federal return.
Solution: Have a Representative contact the Auditor, which could also be a Revenue Agent, and have them battle Uncle Sam in the audit process. Do not represent one self or speak to an Auditor or Agent once a notice of Audit has been received.
Issue: Small business issues and trouble with payroll tax matters.
The tax collecting arm of the federal government views non payment of 940 and 941 taxes as a serious problem.
Solution: Have a Representative contact the Revenue Officer and begin to work out a collections alternative plan and solution for payment.