Dealing with the IRS

Dealing with the IRS can be a daunting and confusing task for anyone without the help of an experienced tax attorney. The IRS deals with millions of citizens on a yearly basis when collecting annual income taxes or quarterly income taxes. There are self-employed citizens throughout the country and citizens that work for corporations and both types of people must pay their taxes each year. If a person fails to file their annual income tax return, they will be contacted by the IRS. Many experts recommend to always open and read any letter received from the IRS. If the letter is not opened and read then the matter at hand can snowball into something worse than it really was. For instance, the taxpayer might wind up going to court instead of attending an arbitration or mediation meeting with the IRS and their tax attorney. A majority of issues that arise for taxpayers with the IRS usually include a statute of limitations or a specified period of time for the taxpayer to take action. If the taxpayer does not take action within that specified time frame then they might lose some of their rights in dealing with the problem at hand.

When responding to the IRS regarding a letter a taxpayer received, the taxpayer should include copies of the letter the IRS sent along with a copy of the response from the taxpayer. Never include the originals. Save the originals for permanent records. When dealing with the IRS the burden is always on the taxpayer to respond within the time frame allotted. Once the taxpayer has submitted their response to the letter from the IRS they should also include their phone number or an easy way for a representative from the IRS to get in touch with the taxpayer. This makes it easier to resolve whatever problems are lingering regarding a taxpayer's taxes or income tax return.

Dealing with the IRS doesn't just include answering letters received by taxpayers. It also includes negotiating payment plans, negotiating an offer in compromise, attending a mediation or arbitration meeting, taking part in litigation hearings, appealing decisions made by the IRS and much more. Another reason the IRS might contact a taxpayer is to notify them that they are being audited by the Internal Revenue Service. Being audited by the IRS is an overwhelming and exhausting procedure that can result in the loss of property including a taxpayer's home, their motor vehicle, and any other real property that they might own.

When dealing with the IRS taxpayers should know and understand that they cannot go it alone. Why? The IRS changes its policies and procedures almost on a yearly basis, which means that new policies can be in effect at anytime. If a taxpayer is contacted by the IRS they should then turn around and consult with a tax attorney. A tax attorney will be able to answer any questions regarding the taxpayer's correspondence with the IRS and be able to keep the client up to speed with all of the new tax laws and regulations.

There are numerous forms available to fill out when dealing with the IRS that covers various situations. Some of those forms include the Form 911 for an application for taxpayer assistance order, the Form 9465 for the installment agreement request, the Form 1040X for Amended U.S. individual income tax return, the Form 2848 for power of attorney and declaration of representative. All of these forms can be used when dealing with the IRS, depending on what type of case the taxpayer has, and can be found on the website for the IRS.