Posted by Karen Munoz, EA

Important Things to Bear in Mind When Dealing with IRS

Important Things to Bear in Mind When Dealing with IRS

The Restructuring and Reform Act of 1998 marked a change that mandated Uncle Sam to adjust how it treated taxpayers. Uncle Sam must fully communicate with taxpayers and grant them due process in all dealing based on the legislation. 

This means Uncle Sam can be barred from taking action to collect any unpaid tax except it hears your side of the story. With these rights, you can be confident of a fair hearing if you have unpaid taxes with Uncle Sam. Here are some things to keep in mind when you owe the IRS:

  1. Avoid Ignoring IRS Notices

You are making your tax problem worse by ignoring any notice Uncle Sam sends either by certified or standard mail. You can’t just refuse to pick your mail or answer the door when Uncle Sam comes knocking. 

You will get certified mail from Uncle Sam so that you won’t be able to deny that you didn't get the right to a fair hearing. Once Uncle Sam sends you a notice via certified mail, it needs to show that it already tried to contact you via your last known address. Uncle Sam is not mandated to prove that you accepted such mail. As a result, you are shooting yourself in the leg if you refuse such mail. 

  1. Uncle Sam must treat you Courteously

Based on the 2018 IRS Publication termed the IRS Collection Process, everyone has a right to representation by a CPA, attorney or enrolled agent. In addition, you must be treated courteously and professionally. 

  1. Consult a Tax Expert Before Speaking to Uncle Sam

Your time with a tax advisor or professional is never a waste. From their insight, you can know how to prepare for the interview, the documents you need, how to organize yourself, and when the IRS official overstepped the boundary. 

Uncle Sam is a representative of the government assigned with the collection task; hence an idea of your rights will be beneficial before any meeting. 

  1. Meeting the IRS alone is not a good idea.

For every summon you have for an interview with Uncle Sam, meeting them alone is never a good idea. Ensure to go with an attorney as they can help you answer all questions. 

Besides, a tax professional or attorney is likely familiar with how an interview with the IRS is conducted. As a result, all documents and responses will be ready. 

  1. Uncle Sam is also prone to Mistakes

Uncle Sam might not always have accurate data about your income and debt. This is common with people making a payment with a payment plan. Since Uncle Sam also makes mistakes, ensure to request any documentation and review to validate the authenticity of any claim. 

  1. There is no Jail time for Refusal to pay

Contrary to what you might have heard, it is rare for people to go to jail for not paying their taxes. Cheating, doctoring information, or any action, classified as an attempt to deceive the IRS might warrant jail time. 

  1. Respect the Tax Collector’s Power

IRS tax collector officers are as powerful as anyone in the federal government when it comes to collecting taxes, and they can also make your life hard. As a result, it is pointless being complex with IRS agents because you are mad about any amount you have to pay as tax. IRS agents are people trying to do their job. 

As a result, you can expect some unpleasant treatment if you do not resolve your tax issues:

  • File a tax lien against you

  • Garnish your wages

  • Levy your account

  • Sell or seize your home

  • Close your account 

  • Interfere and ruin your business and employment relationship

  • They mandate you to have a monthly payment arrangement that is too much of a burden 

  • Explore you personally for corporate employment taxes

  • Contact your friends, families, neighbours, and business partners about your tax liabilities

Get Help before Contacting the IRS

Paying your taxes and everything you owe Uncle Sam is important as nonpayment can negatively impact you and your financial life. Contact a tax professional or attorney for help in dealing with Uncle Sam. 



Karen Munoz, EA
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