IRS Tax Issues – Addressing Them

The IRS wants your money as tax time comes nearer. IRS issues such as penalties and tax debt will daunt you. By applying your essential tax knowledge and consulting a Tax Specialist, you can prevent these.

Know that you are not alone if you’re faced with IRS tax issues. Thousands of Americans get IRS notices or are unable to pay their taxes on time every year. Normally, the IRS fails to give information on your taxpayer rights and is the one at fault. You must be persistent and knowledgeable when handling the IRS. You can pursue the course of action that’s in your best interest if you are informed of your options and you are aware of your rights.

Not being able to settle the amount you owe in time is a common tax issue people face. Proving why you can’t pay the taxes and filing an extension via the Form 4868 is the simplest solution to this issue. When taxes aren’t settled, harsh interest and penalties result. An extension usually will not be enough if you are having a crisis financially. By filing a Form 9465 in this case, you can negotiate for an Installment Agreement with the IRS. A request for an Installment Agreement enables you to pick the amount you can afford to pay each month and stops the IRS from garnishing your wages, seizing your property, or continuing similar collections.

Having penalties added to your tax bill is another common IRS tax issue. There are over 140 penalties the IRS can charge you with at will, and penalties can even be imposed on taxes already paid. Penalties can range anywhere from 10% to 100% of the amount owed. Paying late, filing late, and errors on tax returns are among the multitude of reasons that the IRS assesses penalties. Fortunately, there are various options for escaping penalty fees.

The best way to deal with IRS tax issues is to hire a Tax Specialist. This can be an ex-IRS employee, an accountant, or a lawyer who’s familiar with the tax law’s many complex details. A local Tax Specialist with impressive experience and a proven experience is advised.

You can ask for a Penalty Abatement for issues like paying or filing taxes late and not reporting income. Documented circumstances like a death in the family, hospitalization, or a natural disaster are valid excuses. You can file a Penalty Abatement request on your own or with the help of a Tax Specialist at the IRS Service Center in your area. Address it to the Penalty Abatement Coordinator, attach documentation like a death certificate, doctor’s letter, or insurance statement, and attach a copy of the IRS penalty notice. If you know your rights, your tax problems become simpler to address.