Do you have tax problems and need tax help? There is no need to panic, but you do need to be responsive to the IRS requests for additional information. It has been my experience, after having several mail and formal sit down audits, that the individual or tax preparer can handle most IRS requests for information through the mail. You just need to meet the IRS deadlines for response and make sure you complete all their required forms. The mail process usually handles most of their inquires, but occasionally they will want you to come in for a sit down audit. It has also been my experience the auditors at the sit down audits are very knowledgeable of the tax law and do a very through audit of your return. You just need to make sure you are prepared with the requested documentation for all deductions in question.

Tax Avoidance

According to Wikipedia tax avoidance is the legal utilization of the tax code to limit your tax obligation. Tax evasion, however, is the term used for not paying tax obligations by illegal means. The IRS will work with individuals, who are trying to avoid tax liabilities, but tax evasion is illegal and the IRS can easily tell the difference.

Tax Attorneys

It is always a good idea to consult professional tax advice or a tax attorney after being contacted by the IRS so that you can develop a plan of action to satisfy the IRS concerns. A tax attorney can also help to quickly correct misunderstandings and provide good representation when needed.

IRS Flags – Deduction Limits

The IRS has limits for certain deductions that you might take based on your income reported. If you exceed any of these limits your return could be flagged for audit. Depending on the item flagged the audit could be handled through the mail but sometimes they request you come in for a sit down audit. In most cases the individual or tax preparer can also handle these sit down audits. The auditors will inform you before the audit as to what parts of your return they are auditing and what documents you need to bring to verify deductions.

Don’t Panic

The IRS is only trying to make sure people are complying with all the tax laws. The tax laws sometimes can be a little gray concerning some deductions or the amounts allowable. Some amounts can be negotiated and some cannot. Again good tax advice and good representation can quickly resolve most tax problems. If you do panic and need tax help call for help early so that your tax professional or tax attorney has time to respond to any IRS tax concerns. The IRS has many tools at their disposal for enforcing tax collection but this can be easily delayed or avoided just by timely correspondence.