IRS Tax Issues: Addressing Them

The IRS needs your money as tax time draws nearer. IRS issues such as penalties and tax debt will overwhelm you. You can avoid these by asking a Tax Specialist and applying your essential knowledge on taxes.

Be aware that you are not alone if you're dealing with IRS tax problems. Every year, thousands of Americans are unable to pay their taxes on time or get notice of a problem from the IRS. Normally, the IRS is the one at fault and fails to give accurate information on your rights as a taxpayer. You must be persistent and knowledgeable when handling the IRS. You can pursue the course of action that is in your best interest if you're familiar with your options and you understand your rights.

Among the most common tax problems people meet is being unable to settle the amount owed in time. The simplest solution to this problem is to file an extension using Form 4868 and proving why you cannot settle the taxes. Heavy penalties and interest occur when taxes are not settled. An extension normally will not be enough if you're experiencing a crisis financially. In this case, you must negotiate an Installment Agreement with the IRS by filing Form 9465. The IRS is stopped from pursuing actions through property seizure or wage garnishment and you can pick 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 problems is incurring penalties added to your tax bill. There are more than 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. Settling late, filing late, and errors on tax returns are among the score of reasons that the IRS assesses penalties. Fortunately, there are some options for avoiding penalty fees.

The simplest and least stressful method for dealing with IRS tax issues is to employ the help of a Tax Specialist. These are people trained in the intricate details of tax law and the numerous loopholes existing in it. An ex-IRS agent, a lawyer, or an account can be a Tax Specialist. A Tax Services Specialist in your locality can be found online, so make sure you check their track record and experience.

Handling IRS tax issues becomes much easier when you are aware of your options. One can normally request a Penalty Abatement for tax penalties. With the assistance of a professional Tax Specialist, it is simple to qualify for abatements. If you do your research first, however, it is possible to make a Penalty Abatement Request successfully on your own. Issues such as not reporting income, paying taxes late, and filing taxes late qualify for abatements. Valid reasons for these penalties are medical issues, such as being hospitalized, a death in the family, a natural disaster, or similar documented situations that would hinder a taxpayer. You must write a letter to the Penalty Abatement Coordinator at your nearest IRS Service Center to file a Penalty Abatement Request. Give evidence of your excuse in the form of insurance statement, a death certificate, or a doctor's letter. You have to also include a copy of the IRS notice informing you of the penalty.