Friday, April 16, 2010, AM | Leave Comment
The tax season of 2010 for most of us is over, unless some folks filed in the automatic extension.
The Federal government is running a humongous budget deficit this year and will do so in the coming years as well.
To lower the deficit, the government has always turned to the American public for better or worse. They need money from us, the good and decent folks.
The way it does is let the Internal Revenue Services – commonly known as IRS – do its dirty job of collecting money. The IRS calls it taxes for the lack of a better word.
This year, as never before in the history of the Republic, the IRS will try to collect more money to help the government reduce the deficit. It will follow a phenomenon called auditing. For this purpose, IRS has bought and installed supercomputers in all their regional and central offices to track down your income, liability and how much you actually owe to the government as compared to how much you actually show you owe even if the amount in question is 4 or 5 cents [Detroit lawyer gets 5-cent IRS bill, 4-cent refund].
What to do when the IRS calls on you
You have options. Many experts agree to fight IRS and win is almost impossible. That could be your nightmare on Elm Street. You wish you never had gone to sleep. And when you wake up, you will be all sweaty and financially bloodied. Your ultimate financial death will follow soon if you choose to fight IRS in a hand-to-hand combat. Please, don’t.
If you think you are superman and you can fight any one including IRS, then you have to be well-organized and more comprehensive in your record-keeping as you ever can be and then some.
If you are absolutely – I repeat absolutely – convinced beyond any shadow of the doubt, consider pushing your case up the chain of command.
You have a few options to fight IRS
- Try the IRS appeals division.
- Seek valuable help from the IRS’s taxpayer advocate service.
- Go to United States Tax Court.
Avenues you absolutely, positively, must not take
- Ignore IRS notices and letters, hoping the problem would go away.
- Ignore deadlines of any kind from IRS.
- Tell IRS and judge paying tax is voluntary. Nobody would believe you.
- Bribe an IRS agent. That’s close encounter of the worst kind.
- Hesitate having a smart, well-prepared tax expert on your side.
In a Nutshell
Don’t try to fight the IRS until you are absolutely, positively, 200% sure you can win. You would be financially bloodied whether you win or lose. Experts advise “It’s not worth it.”
Not trying to be too religious about it, it’s like hoping to go to heaven somehow by committing suicide. Every religion would tell you “YOU CAN’T.” That’s one of the few times to better sit on your ass and do nothing.
What do you think?Facebook.com/doable.finance