Most people try to think about the IRS as little as possible throughout the year, and then when tax time comes around they have their taxes filed and hope everything goes smoothly. When asked about the IRS, most people report that they are scared of this mysterious agency that has the power to destroy lives and businesses with a simple audit.
While there is no doubt that the IRS is powerful, they are much easier to deal with when you aren’t dealing with myths or fabrications. Before you do anything related to the IRS, take a moment to get the truth about these four common IRS myths.
Myth #1: Ignoring the IRS Will Make the Problem Go Away
When individuals or business owners are in a difficult financial situation and the IRS is calling them about their returns, many people get scared and ignore the call. People often think that the IRS is like any other debt collector, and if you ignore their calls long enough they will go away, at least for a time. The reality is, however, that the IRS has much more power than any traditional debt collector and if you don’t meet their deadlines, they can quickly get judgments to garnish your wages or even seize your business assets. If you’re nervous about talking to the IRS, you can always have an attorney speak to them on your behalf to get the best possible results.
Myth #2: Only High Income Earners Get audited
When filing tax returns, many people in the middle class think they can get away with stretching the truth on certain items because they won’t get audited. While high-income earners do get audited more frequently, every single return that is filed is subject to an audit. If the IRS finds something questionable, they can go back several years to do further audits as well. Filing an incorrect return now may cause you major problems down the road.
Myth # 3: Leaving the State or Country Can Stop the IRS
People who are in serious trouble with the IRS often think that they can leave the state or even the country in order to evade any tax responsibility. In reality, the IRS can make your life miserable even if you’re on the other side of the world. When they finally catch up to you, the situation will be far worse than if you had just hired a good tax attorney and dealt with the issue in the beginning.
Myth #4: The IRS Has Unlimited Power and Won’t Negotiate
Another common myth people believe is that since the IRS has so much power to freeze accounts, shut companies down and even bring criminal charges against people, they won’t negotiate at all. The reality is, however, that the IRS is often willing to negotiate to get a case closed. Having skilled representation can not only get your case closed, but also save you a lot of money in the process.
If you are having any type of trouble with the IRS, you need to take it seriously. The problem will not go away on its own. However, with a good tax attorney on your team, you can solve your IRS dispute and get on with your life. Please contact us today to learn more!
Written by E. Morgan Maxwell
Since beginning his own firm, Mr. Maxwell has continued a tax-law oriented practice encompassing a wide range of transactions, planning and dispute resolution. His dispute resolution experience includes involvement at all levels of the Internal Revenue Service (Examinations, Appeals, Collections, Office of Professional Responsibility, the U.S. Tax Court), the Pennsylvania Department of Revenue, the Tax Litigation Section of the Pennsylvania Attorney General’s Office, Pennsylvania Commonwealth Court, Common Pleas Court and local taxing jurisdictions in southeastern Pennsylvania.
