The Top 5 Tax Secrets The IRS Doesn’t Want You To Know – Part 4
TAX SECRET #4
AVOID IRS AUDITS, AND IF YOU GET AUDITED — END IT QUICKLY
You can avoid most IRS AUDITS by doing a number of things.
THEY ARE:
∙ File on Time
∙ Report all Income for which you received 1099’s or W-2’s
∙ Avoid schedule “C”
∙ Set up some type of record keeping system
∙ Do not make your return look absurd
∙ If you are running a business, set up a company
TAX SECRET #5
DO NOT PAY THE IRS UPON RECEIVING A TAX ASSESSMENT LETTER,
TRY TO CUT A DEAL!
The IRS does “do deals” related to taxes owed to them. They can (and will) reduce all penalties and interest on your account. Their requirements are rigid, but if you qualify the results can be great for you!
In most cases, to qualify for “a deal” with the IRS, the taxpayer usually has to owe the IRS over $20,000.00. Also, if the taxpayer has very little in the way of equity and assets this will make a big difference in your favor as well. If the person (or family) who owes the IRS can show he/she uses most of their monthly income to pay for necessary living expenses and they would have very little money left over to pay back taxes, then there is a possibility they might only have to pay IRS as little as ten cents (10 cents) for every dollar owed. (That’s huge!)
Why would they do this?
The IRS wants you back in their system so you can keep paying taxes like other current taxpayers. If the IRS doesn’t settle, they are not going to see any more money from you for a while anyway. Oh, and before you think these IRS agents are “nice guys” — the fine print in these kinds of deals require you to file your tax returns on time for the next 5 years. If you do not file on time, the IRS will revoke the deal and will bill you for the original amount. (Now that’s some weasel clause language you need to pay attention to!)
Our tax business has helped various types of taxpayers over the years in situations just like this. We have prepared several OFFERS IN COMPROMISES and have had them accepted. We really enjoy seeing the taxpayer and their families get a fresh start.
So if you qualify, I’d strongly consider making an offer to compromise the amount of tax you owe. If you get accepted, it is the best tax savings deal available!
OK, there’s 5 of the most common tax savings and stress reducing secrets for taxpayers living and working in the United States. You can use this information to avoid making any potential IRS difficulties worse or help you stay out of trouble with Uncle Sam all together!
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Tags: IRS, IRS Audits, Tax Penalties, Taxes
