Taxation & Estate Planning

Steps to Avoid IRS Problems

By Darrin Mish

If you have had IRS Problems in the past, you know how stressful it can be for you and your family. If you are now free of IRS Problems, you will understand the importance of avoiding IRS Problems in the future. Using the right plan will allow you to accomplish just that. Following this plan will give you and your family continued emotional and financial stability.

The Plan

? Settle your taxes by the due date
? File tax returns every year
? Prepare tax returns accurately
? Respond to IRS notices promptly

Settle your taxes by the due date
Do not procrastinate. File your tax return on or before the deadline. Filing late may alert the IRS and could trigger an audit. If you owe taxes and pay them on time, the IRS will not have a reason to investigate you. If you cannot pay your taxes, file your return anyway. That will hopefully help to stop any criminal charges and also any fines assessed for failing to file or for filing late.

File tax returns every year

If you fail to file a tax return, the IRS might not find out but why take that chance? If you are unable to file on time, make sure you ask for an extension before the due date. Be aware that extensions do not stop penalties or interest. They will continue to accrue and your tax debt will increase.

Prepare tax returns accurately

Do not leave anything out or underestimate anything on your tax return. Do the math accurately and submit a clean and neat return. If you do not want to spend time preparing your tax return, hire a tax professional. They will be up-to-date on tax changes, will have ways to help you reduce your taxes, and will help you finalize the return.

Respond to IRS notices promptly

Do not panic when you receive an IRS notice. Many notices are generated for minor issues such as forgetting your Taxpayer Identification Number or for a math error. Read the notice carefully so you understand why you received it. If you do not understand, call the number indicated on the notice to get an explanation. Follow the directions taking special care to respond promptly. Do not set it aside and forget about it. If necessary, hire a tax professional for help. When returning it use certified mail, return receipt requested so you know the IRS receives your reply.

Let our knowledgeable staff help you put a plan in motion. With our assistance, you will continue to be free of IRS Problems. Contact us today at (888) 438-6474 to get started.

Full post as published by IRS Problem Solver Blog on March 11, 2008 (boomark / email).