Tuesday, February 2, 2016

How to Interact with the IRS

As a business owner and taxpayer, you may be required to interact with the IRS for variety of reasons. While many look at the IRS as being Uncle Sam’s whip, 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. 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.

From the words spoken by tax lawyers, this first thing you should understand is that the IRS is not responsible for raising taxes and should not be your primary target but with corrupt and bad applies like Lois Lerner, it is hard to figure out an honest civil servant and someone who wants to keep anti-business and high tax policies of America alive. Their main task is to oversee the implementation of the IRC and that individuals and business owners adhere to the rules and regulations laid down in the tax code.

Learn to Interact with the IRS

To begin with, it is important to learn to communicate with IRS employees effectively. There is no reason for you to feel intimidated when it comes to dealing with the IRS and your tax attorney know this since they deal with the IRS all the time. Getting agitated over a question posed by an IRS agent will only make matters worse for you. 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. 



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 the same way and assume that you are trying to avoid them. You do not want them to treat you like they did outstanding Americans who ran political organizations in 2012. The corrupt officials who work for the IRS have been sued and there are lawsuits still pending because of this horrendous big government behavior. Lois Lerner still has her pension though.

Document all Communication with the IRS

Everyone appreciates documented evidence and the same rule applies to all interactions with the IRS. 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.

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.

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 even if you have a tax lawyer by your side. After all, you won’t want to be accused of tax fraud for no reason.

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

According to tax lawyers, on 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 this, 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.

You just do not want to be late with any paper work though – Kevin Bacon’s character Jack Swigert knows all about that. Amazing they did not have incredible websites like this (http://tax-lawyers.usattorneys.com/) decades ago but they could still send someone to outer space. If you need legal help that is the website you need to use. Sorry, it does not fly you to out space though. You need to call SpaceX for that! 

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