Dealing with the IRS is an area full of dangerous traps. You usually discover
your fatal mistake when it`s too late. Be careful with these ten ticking-time bombs:
1) Expose yourself to an irrational or incompetent collection agent. If you
think you are being mistreated or over-threatened by an incompetent and dominant IRS officer, request to speak with that employee`s manager or boss and immediately explain the situation.
2) Not knowing where you are standing. Open and read the IRS letters. Request a record of your account or account registration.
3) Admit that you violated tax laws. If an IRS officer tries to get
incriminating statements from you end the interview immediately and hire a
lawyer. If you were interviewed by a special agent or Fifth Amendment rights were read to you stop talking and hire a lawyer immediately!
4) Ignore the IRS. Never ignore the IRS, at least, not without a legal suggestion. Respond to IRS correspondence that requires a response. Don`t take the example of the ostrich, which buries its head in the sand.
5) Assume that the IRS is correct. Do not assume that a tax collection is correct. Request a record of your account. If the IRS tells you something, consult with a tax professional.
6) Do not submit your tax return. If you have not filed a tax return, the statute of limitations for that particular fiscal year has not changed. This means that there is no limit on the amount of time the IRS can pursue it.
7) Commit perjury. Never falsify financial information. Be honest with the IRS because making false statements under oath is perjury. It is better to refuse provide information to lie and commit perjury. Don`t turn that into a civil matter. (Failure to pay) in a criminal matter (perjury).
8) You are being pressured to pay your taxes when you cannot pay. The IRS will press you endlessly to sell or apply for loans on your assets to pay what you owe.
9) Hire the wrong person or company to represent you. Don`t hire a representative so quickly. The best advisor for you can be a lawyer, CPA or enrolled agent. Ask friends for reference, check google or magazines in your work area and don`t hire those who advertise on radio or television.
10) Extend the Statutes of Limitations for the Collection. Do not extend the collection time in favour of the IRS, at least not without competent legal advice. Under IRC 6502, the IRS is only ten years from the date of tax assessment to collect your unpaid taxes.