07/02/2019
Benjamin Franklin wrote “in this world nothing can be said to be certain, except death & taxes”... and, there’s no reason to believe that’s going to change anytime soon.
So, the #1 mistake to avoid when owing the IRS money for back taxes is contacting them without knowing what options are available to resolve the issues - according to IRS code and law.
And there are only 2 ways to do that…
1. Learn the whole tax code, or
2. Get help from someone that already does know the whole
tax code.
We hear from people, over and over again, that make the mistake of contacting the IRS without first knowing their options... and to say the least, it usually doesn't end pretty.
I know, that may sound a little self-serving for a tax resolution company but, unless someone is a tax professional (that' why many don't do their taxes themselves in the first place) they just won’t know about the many tax advantages and programs that are in their favor.
1. Here are some examples of little known advantages:
a. If someone owes the IRS less than $50,000 they don’t
have to reveal most of their financial information to the
IRS. (almost hard to believe but it’s true)
b. But, not surprisingly, when people contact them the
first thing the IRS does is ask them how much money
they make, what all their assets are and everything else
about their financial situation.
c. Then, based on that they TELL THEM how much they can
“afford” to pay... and it’s usually way more than they can
really afford!
2. Also, here examples of things the IRS won’t tell people:
a. They don’t let people know when they qualify to
settle for less than they owe.
b. Also, when people file their back taxes and take ALL
their deductions they probably won’t owe them nearly as
much as the IRS says they do... or even anything at all.
c. Sometimes they may even be due a refund! (it happens
more times than anyone might expect)
d. Related to this, they certainly don’t tell people what
deductions they are entitled to.
3. They usually just tell people what they say is owed to them
and how quickly they have to pay it back, whether it’s
affordable for them in that time period or not.
This results in...
a. People defaulting on those agreements because they
can’t meet them
b. Which means they get hit with more penalties (including a
default penalty) and interest.
c. Possible bank levies, wage garnishments and liens on
their homes and businesses
So again, the #1 biggest mistake people that owe back taxes make is to contact the IRS without knowing what their options are.
And unless they want to learn the whole tax code the best way to do this is probably to contact someone that already does.
I know that's not what people want to hear but unfortunately it's reality.
So, if anyone needs to find out what options are available why not contact us now for a free consultation?