Tuesday, January 19, 2016

How to Handle IRS Interactions

As a business owner and taxpayer, you may be required to interact with the IRS for varied or a variety of reasons. Not all of them are corrupt, most are not! While many look at the IRS as being Uncle Sam’s whip which is why they need to be kept in check which did not happen in 2012 when the IRS made America look like a banana republic with their targeted attack on conservative and religious groups that did not share their ideology. With that said, you still have to deal with the IRS at certain times and being cordial is normally the way to go.   

Dealing with an IRS bureaucrat is the opposite of watching Lockdown fight Optimus Prime, the former is dull while the latter is captivating. Nonetheless, you may have to do it one day. Be patient with them, the tax code is complicated and is nothing to be proud of. But it is reality and until someone simplifies it and lowers the rates, it is a part of our life. Working with a tax lawyer, who can be found right here: http://tax-lawyers.usattorneys.com/, you should have everything in order before you speak with this IRS representative. Do not panic if you do not. You can always call them the next day or in another hour.
To continue, it is essential to understand that as long as you are honest and forthcoming, the IRS will be willing to assist you in many ways in accordance with the laws and hopefully morality. 

Tax lawyers know that disputes may arise from time to time, and you ought to learn how to deal with the IRS and various tax issues including back taxes, penalties, IRS audits, and disputes. The first aspect you ought to understand is that the IRS is not responsible for raising taxes and should not be your primary target. Their main task is to oversee the implementation of the massive and endless Internal Revenue Code (IRC) and that individuals and business owners adhere to the rules and regulations laid down in the tax code. No one really understands this but most of them do their best.

Learn to Interact with the IRS

To begin with, it is important to learn to communicate with IRS employees effectively. Tax lawyer acclaim that there is no reason for you to feel intimidated when it comes to dealing with the IRS. Getting agitated over a question posed by an IRS agent will only make matters worse. Moreover, if you feel you are in the right then it is prudent to prove your point and substantiate your claim with documentary evidence and in a professional manner, which is what attorneys recommend.

Stick to IRS Deadlines

As long as you are prompt and stick to the IRS’s schedule, you can expect things to move smoothly. Moreover, you wouldn’t want to give them reason to treat you any differently and assume that you are trying to avoid them.

Document all Communication with the IRS

Everyone appreciates documented evidence and the same rule applies to all interactions with the IRS. Tax lawyers stress the fact that this will avoid any miscommunication or misinterpretation that can often lead to mistakes. Keeping written records of conversations with the IRS will help if you need to recall any interaction with them on tax issues.

Keep all Your Records Handy

Make sure all your bank statements, copies of tax returns, receipts of deductions claimed, profit and loss statements, and other receipts and expenses are readily available.

Be Specific

When asked any question be sure to answer to the point. Any ambiguity on your part will only lead to further confusion and give the IRS every reason to doubt your credibility.

Confidence is the Key

The key to dealing with the IRS is confidence, which you can exude by answering promptly, asking questions when you have doubts, and voicing any disagreement in a polite and appropriate manner. This will establish a level ground and increase your chances of a favorable outcome.

What to Expect in an IRS Interaction

The first meeting with the IRS agent, you can expect to be asked a long series of questions that includes your profession, location, nature of business, and the type of clients you service. In addition, you will be asked about your suppliers, your source of income, and details of your bank accounts. Following these steps, you can expect to get down to figures, with the agent going through and verifying the accuracy of your report with your supporting documents. In most cases, if all is in order, you can expect to have your case closed as soon as possible which will make your tax lawyer proud and happy. 

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