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How to deal with the IRS

On occasion you may have to deal with the IRS. It may be as simple as a notice that you did not sign your tax form or maybe more complicated as with an audit. In any case some ground rules should first be established within your own mind.

1. IRS folks are people also. Some are motivated and some are not. Some are sharper than others. Some have more experience than others. On any given day some will be in a good mood and some will not. IRS deals with millions of phone calls and letters annually. They often must deal with antiquated computers and angry consumers. Most are their to do a good job and assisting you as best they can to meet your tax burden is part of their job.

Though still subject to error, the IRS is methodical. Sometimes this translates into what the consumer sees as slow. But the IRS is definitely methodical and will eventually right any wrongs.

Therefore the first two cardinal rules when dealing with the IRS are:

a. Regardless of the reason to be in contact, treat the IRS as people. Give them the same dignity and respect you deserve and that anyone else deserves.

b. File on time.... even if you do not have the money. This puts you on a much firmer basis than contacting them when you have not even filed. You might be interested to know that the IRS has six years from the due date of the unfilled to file criminal charges against you.



2. If you cannot pay your taxes, you can request a payment plan for up to 36 months. You will pay interest but far less than paying by most credit cards. The collection arm of the IRS that you will deal with in repayment is the Automatic Collection System (ACS). You should be contacting them before they contact you. But do not ignore a letter or contact from the ACS and be likeable when dealing with them. It is definitely to your advantage! When requesting payments insure you have your assets and liability and suggested repayment plan in mind or it will be a waste of everyone's time.

The tax audit time limit is 3 years from the original filing unless you have underestimated your tax liability by more than 25%. In this case it is 6 years. Audits are usually conducted because of an irregularity on your return such as excessive expenses for your income, excessive improper deductions or exemptions or a specifically targeted group by the IRS. There is also the chance of random selection.

The IRS has a very long reach and can check records from numerous sources such as employers, relatives, former spouses, friends, government


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