Category: Top » Finance » Taxes »


Author: crackmarketing | Total views: 1 Comments: 0
Word Count: 573 Date: Tue, 8 Jan 2008 4:41 AM

Do Not Take On Your IRS Problems on Your Own

You may be a tax compliant, filing all your returns on time and having no issues with the tax authorities in the past. Yet one fine day you receive the dreaded certified mail from the IRS you open it and you find a 30-day notice to pay the amount the IRS says you owe it, or you receive a telephone call from the IRS. Whatever the situation you are stunned and bewildered and your first instinct is to take on the IRS. Since the case appears simple and a tax attorney seems an expensive proposition, you may decide to represent yourself.

However, such a step is fraught with danger. Remember, taxes are based on law and can be interpreted in many different ways. The IRS agents though sporting a friendly demeanor are a bunch of highly trained professionals and it is their duty to assess the maximum possible amount of tax due. You have a right to appeal the agents audit report but if you are not aware of it, it is not the agent's responsibility to protect your rights. You stand to lose thousands of dollars. Think about it, if you had an infected ingrown toe nail, you could self medicate and remove it yourself or go to a clinic and get it removed by a doctor who would anesthetize your toe before the procedure. Do yourself a favor and hire a tax attorney. Tax laws are like a minefield and a favorite stomping ground of tax attorneys, since they know how to get around and survive the minefield.

All the contents of the discussion you have with the IRS is recorded in some form or another and agents can misconstrue any statement you make, and remember that any false statement made to a federal agent is a serious crime and can result in criminal indictment. Seemingly innocuous statements made by the taxpayers may be interpreted in different ways, causing more harm than good.

Tax laws are complex and as mentioned earlier can be interpreted in many different ways. Many a times, taxpayers are confronted with more serious and complex issues than the ones they originally attempted to fix.

A good tax attorney will act as your shield and handle all the communication with the IRS. The IRS agents are on the government's side and are not expected to protect you, whereas your tax attorney is on your side and is well aware of your entitlements. In 1998, the Congress offered significant procedural protection to taxpayers. However, in case you choose to represent yourself you lose this first line of defense. A tax attorney will help you make the most of the protection the Congress gave you as a taxpayer.

Hiring the services of a competent attorney as your interface with the IRS will surely save you money. Hire an attorney with specialized education in taxation (L.L.M in Taxation). Look for references from other lawyers and judges. Martindale-Hubbell peer review ratings will help in evaluating and selecting the right tax attorney. The annual budget for the IRS is increasing every year and additional employees and enforcement personnel are added every year. More than a million audits are done each year and it won't be long before you face an IRS problem. A tax attorney may seem expensive, but the tax savings will surely be more than the attorney's fees.

About the Author

Sacramento CPA Firm Murray and Young can help you with Tax Planning and IRS Representation services. You do not have to be afraid anymore. For 2008 Tax tips visit our website: http://www.april15.com.




Rate, comment or bookmark this article

Seed Newsvine

Rating: Not yet rated

Bookmark this article in your preferred program
AddThis Social Bookmark Button

Comments RSS

No comments posted.

Add Comment

Your Name:


Your Email:


Comment

Enter the code shown

Visual CAPTCHA



Popular Articles in this cathegory

1: Small Business Tax Tips: I Received Form 1099-MISC -- Now What?
Did you receive a Form 1099-MISC and aren't sure what it means and/or what to do with it? This article will answer those questions.

2: Small Business Tax Tips: How to Prepare Form 4562 in 5 Simple Steps
Find out how to prepare Form 4562 without breaking into a sweat.

3: Schedule C Tax Deductions: How to Deduct Cost of Goods Sold
Are you a sole proprietor who sells a product? Then you need to know how to deduct expenses related to the sale of those products. The purpose of this article is to give you an overview of what is potentially your biggest tax deduction.

4: Schedule C Tax Tips: Why Filing Schedule C-EZ May Be a Big Mistake For Your Small Business
Are you a sole proprietor who files the shorter Schedule C-EZ rather than the traditional (and longer) Schedule C? If so, please read on to find out why you may be making a big mistake.

5: With These Tips Taxi Driver Accounts Do Not Have To Be Taxing
Taxi Drivers should not to bury their heads under the dashboard when it comes to producing a set of taxi driver accounts. Producing a set of taxi accounts without the use of a taxi accountant is possible and significantly easier if a professional taxi accounting software package is used.


Creative Commons License
This article is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Spanish taslation