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Strategies on How to Fight the IRS

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By Crystalgemt


It’s every taxpayer’s worst nightmare. They’ve received a letter informing them they’re being audited. If you make $100,000 or more this year, you may be audited next year. Some reports have claimed over 219,000 people were audited last year, so you may need to know strategies on how to fight the IRS.

Some people dread the thought of taking on the IRS when it comes to their money, but there are some experts who believe you could actually stand to win. Here are some options you have if you believe you are right and decide not to pay what the IRS says you owe.



If you’re having financial difficulties and that is the main reason the IRS is after you, you can contact the IRS taxpayer advocate service. This service will help you understand what the IRS has done and what options you have. You can contact this unit by going to their website irs.gov/advocate.

* You may choose to work with the IRS if you know you owe money to the IRS but can’t pay the full amount at this time. Ask them to allow you to make payments over time rather than paying the whole amount in one lump sum.

* If you’re having severe financial hardships, they may consider a compromise where the IRS settles for less than what you owe. If you receive a compromise, be prepared to follow through with the agreement.

* You may also choose to head to court to defend yourself. The U.S. Tax Court, Federal District Court, or Court of Federal Claims are options. The U.S. Tax Court is the option chosen by most people because it does not require you to pay the contested amount prior to being heard. When seeking a decision from the other two courts, you have to pay the contested amount up front and then seek to receive a refund.

How do you know if it’s best to fight the IRS or to pay what they say you owe? You’ll want to answer some questions: How much money does the IRS say you owe? Have you kept careful records for all deductions you’re claiming? Are you confident you can win? If you have to hire a tax professional to go with you, how much does it stand to cost?

One possible problem which is difficult to win is when you and your partner sign a joint return, but it is your partner who is breaking the law. Proving you didn’t know about your partner’s actions is not an easy task. Once you’ve signed that return, you can expect to be just as responsible as your spouse in paying whatever taxes the IRS determines.

Don’t ignore mail coming from the IRS; that’s the worst thing you can do. Rather than ignoring the problem, hoping it will go away, and racking up penalties and interest in the interim, contact the IRS to see what they need and whether their request is valid.

If, after you’ve tried the above options, you still can’t afford to pay what the IRS says you owe, you may want to consider bankruptcy. This is a last resort but if these strategies on how to fight the IRS do not work for you, you may want to consider it.

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