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Posted by Tiffany Gaskin

Essential Steps To Take If You Have a Tax Problem

Essential Steps To Take If You Have a Tax Problem

Every small business and individual taxpayer dreads receiving correspondence from the IRS. Many times, your senses assume the news will be unpalatable. 

While the mail could be informing you of your tax identification number, many other times, it tells you of an issue with your taxes.

Taxes and anything that has to do with the IRS is a sore spot for many small businesses. This can be traced to their lack of understanding of tax issues. For any tax problem you encounter, here are possible steps with which you can handle them.

  1. Know the Problem 

Information is vital if you do not want to entertain fear when you have tax issues. If you know what the matter is, correcting it will be easy. Here are typical problems small businesses usually run into, with the IRS:

  1. You don’t have the capability to pay

There are times Uncle Sam knows one might not be able to pay everything owed at once. You can arrange a payment plan with them. 

  1. You have an IRS audit. 

An audit is not a death sentence. Many times, the IRS wants more information due to inaccurate reporting or errors on your return.

  1. There are discrepancies on your IRS account.

Uncle Sam might want extra information to process your tax return. This might be due to issues with IRS records, improper payment, or identity theft. 

  1. Never Ignore Uncle Sam

As soon as the IRS is aware of any issue, they will inform you, usually through the mail. One needs to respond to this main typically within 30 days.

Don't fall into the temptation of believing that ignoring it will make Uncle Sam forget. This might lead to more significant issues and might come with substantial financial complications. 

You might be slammed with a fine which will imply a greater financial burden when you finally reply.  

If a tax problem seems overwhelming, make sure you get professional help asap. They can be incredibly helpful in overcoming the problem. 

  1. Hire an Accountant 

An accountant will go a long way to relieve you of tax issues and such professionals will be handy in getting you off of a tax problem. 

  1. Respond to Uncle Sam

Taking care of IRS issues takes time, and Uncle Sam is aware. They are also reasonable as they know everything cannot be fixed in a week. You, however, should not wait for too long to respond. 

As long as you are in communication with the government, they will be lenient. You will likely have their favor with a prompt response that you are working on resolving the issue. This is where you should have a tax accountant as they can help you handle communication with Uncle Sam. 

  1. Be organized. 

When you get a notice from Uncle Sam of tax issues, make sure to go through all tax information you have to organize your response. This could involve reviewing tax documents, expense receipt, and business account to ensure there are no discrepancies. 

Also, one needs to be aware of tax laws that concern the issue. By educating yourself on tax law, it might be possible to identify and correct the problem. 

Records of communication with Uncle Sam should also be kept, so be sure to have a file for them. 

It might be a good idea to scan documents and keep the digital copy. This can be saved and preserved in the cloud.



Tiffany Gaskin
Contact Member