Have you received a letter from the IRS stating that you owe them money?
Sooner or later, chances are that you will get the mail from the Internal Revenue Service. Nobody likes to get thick envelope full of opinions
Before leaving this letter ruin a good day, however, take note of these tips :.
1. Read the letter immediately
Open. Sometimes the hardest part of dealing with the IRS is to overcome this feeling of fear and actually reading what they have to say.
It can not be that bad, or it can be a simple mistake, you can clear quickly. It will not go away if you ignore it.
In addition, if you do not respond within a set period of time, you may incur more penalties and interest.
2. If you have any questions, call
While calling the IRS may not be the best way to resolve a conflict, it is sometimes the best way to know the problem.
Letters from the IRS are often long on words and short on substance, leaving you to guess why they came to a different conclusion than you did.
Pick up the phone can help you get an answer sooner, at least ended the suspense.
3. Know your rights
IRS Publication 1 explains your rights as a taxpayer.
You have a right to privacy, in a professional and courteous service, and pay only the amount you actually owe.
You can choose to be represented by someone else, such as a lawyer or CPA, or to represent you. If you have unresolved tax problems, you can get help from the taxpayer advocate service.
If your case of continuous collection and you disagree with the outcome or how you were treated, you can ask the Appeals Office or a court to review your case.
most people you deal with the IRS are just trying to do their jobs, and many can be very useful.
However, faced with a bureaucracy the size of the IRS can be frustrating. Knowing your rights can help you feel more confident and make sure that your rights are preserved.
4. Determine if you really need the money
Do not panic and pay now, hoping to understand later if the IRS is right.
The IRS makes mistakes. We saw the 1099-Misc form or wage income counted twice, and other errors that significantly affect the amount of tax due.
If you can not understand how the IRS arrived at a different tax amount, and it is more than a few dollars, ask for help from a tax professional.
5. If you owe money, decide if you can and should pay immediately
For example, if the IRS says you owe $ 1000, which is roughly how much you have in your account, and your rent is due, stop.
Pay the IRS is important, but it is not as important in the short term such as food, shelter and other necessities of life.
not shortchange your other financial priorities.
6. If you owe more than you can or should pay, consider your options
You have a certain amount of time to respond and pay according to the letter you received. If you can not round up the money then determine how much you can pay immediately.
You can usually set up installment payments with the IRS for the rest. If you need a huge amount of money, you may have to consider making an offer in compromise.
7. Do not pay someone else IRS bill
The business partners and ex-spouses have a way of sticking other taxpayers the bill.
The IRS generally holds any signatory of a joint return and severally liable for the entire amount due.
However, you might be able to avoid responsibility in some cases.
For example, if you find your ex was involved in shady financial transactions that you don 't know and do not take advantage of, you may be eligible to file for "relief innocent spouse."
8. Do not put your tax bill on your high interest rate credit card
the charge interest and penalties IRS, it is true.
However, the interest they charge is nothing compared to high-interest credit cards. You will incur a convenience fee to put the bill on your card.
the IRS is a reasonable creditor, as long as you keep your end of the bargain. you may be better to pay, rather than a credit card bank.
9. Document everything
Keep copies of your correspondence and documents that you send to the IRS, and your responses to them.
Take notes of phone conversations and dates that you had. If the IRS agrees to anything, get it in writing.
10. Get help
The biggest problem of your tax, the more it is important for you to get qualified professional help.
enormous fiscal problems can spoil the whole financial life of a person, and problems can work their way into other aspects of their lives, and
it is worthwhile to pay Professional tax -. perhaps even a tax lawyer - if the stakes are high. The sooner you solve your tax problems, the better.
Given the choice, would you rather owe a debt to a bank or to the IRS?
photo credit: zilverbat. photopin via cc
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