Taxation & Estate Planning

?Tips and Tricks for IRS Debt Collection

By Darrin Mish

Nobody enjoys dealing with an IRS debt collector. Some people try to lie their way out, while others behave rudely towards them. Here are some tips and tricks when you are confronted with an IRS debt collector or auditor. It could mean the difference between dealing with someone willing to overlook a few small discrepancies and someone who is going to throw the book at you.

Firstly, be respectful of the IRS debt collector. When meeting with him, be punctual, prepared and courteous at all times. If you get correspondences through the mail or phone, respond promptly without unnecessary delay. Answer all questions directly without beating around the bush or playing dumb. Should the IRS auditor visit your home or office, make his visit as pleasant as possible. Be careful about going too far, however. Do not butter him up or try to solicit an undue advantage with extreme niceties or bribery. Your kindness could backfire.

You should also be careful of what you say. Give direct and pertinent answers but do not give answers to questions that are not asked. It could lead to a whole new line of questioning and an even higher tax bill. You are not lying by not disclosing everything that you know. If the IRS auditor did not ask, it is alright not to reveal everything.

You can request for an extension if you are not prepared to deal with the IRS auditor yet. If you have an audit coming up and you are missing a few pages of vital paperwork, ask for an extension and explain why. If you think you can substitute the lost paperwork in short order, go ahead and reschedule a new day for your audit. Dealing with IRS debt collection is serious business and you should be fully prepared with all relevant documents when the audit takes place. Otherwise, you might risk getting taxed a higher amount.

Finally, be honest in all your answers. The mistake that many people make is that they lied on their first return and they now find themselves in an audit with the IRS. At the audit they have two options – they either continue lying or confess to the initial lie and accept the penalty for it. The second option is always better. IRS auditors are walking lie detectors so honesty is always the best policy.

?Tips and Tricks for IRS Debt Collection is a post from: IRS Tax Problem Solver Blog - IRS Help

Full post as published by IRS Problem Solver Blog on January 30, 2010 (boomark / email).