In the United States, paying taxes is a civic duty that supports the functioning of the government and the provision of public services. The tax system comprises various types of taxes at the federal, state, and local levels, including income tax, payroll taxes, and estate and gift taxes.
If taxes are not paid on time and the Internal Revenue Service (IRS) is not informed of the reasons, the law mandates enforcement actions to collect the owed amounts. Dealing with IRS enforcement can feel overwhelming. According to the Tax Foundation, the top half of taxpayers paid 97.7 percent of all federal individual income taxes, with the bottom half paying the remaining 2.3 percent.
According to a tax advocate in Jacksonville, FL, the IRS has many policies and procedures that help to protect the bottom line and collect on taxes owed. These tactics have a significant effect on those who owe back taxes or those who have not filed their taxes.
A tax lawyer can help you learn about the complex tax regulations and how they apply to your case.
This article will look at the role a lawyer plays in dealing with an IRS enforcement action.
Understanding IRS Enforcement Actions
When IRS enforcement action is instituted against you, you should know what it entails. The IRS employs various means of enforcing tax payments, such as liens, levies, and audits.
Liens grant the government a legal claim against your property to secure the payment of tax debts, whereas levies allow the government to seize your assets as payment for existing tax debts. Audits may bring changes to a taxpayer’s return, which may increase tax liability.
These enforcement actions aim to force your compliance and payment of the tax liability. For example, being noncompliant could lead to your wages being garnished and property being seized.
Understanding these enforcement actions can help you prepare an appropriate response and limit their financial and psychological impact.
Evaluating Your Rights and Responsibilities
Understanding your rights and responsibilities in relation to IRS enforcement proceedings is important. You have the right to know what the IRS intends to do regarding your tax obligations.
If you believe you are being treated unfairly by the IRS, you have every right to contest those claims and request a hearing. You have the right to have legal representation, so you can find an attorney to assist you.
When communicating with your attorney, you must be truthful and diligent when requested to provide necessary documents. Failure to uphold these personal responsibilities may lead to more problems.
Developing a Strategic Response Plan
The IRS will be undertaking enforcement actions, and knowing how to structure your responses strategically will aid in negotiating potential challenges.
Collect your tax records, including returns and IRS correspondence. Conduct a review of your finances to analyze how your assets may be affected.
Identify urgent concerns like response deadlines or fines. Find a tax law attorney to help you make decisions. Discover your options, including negotiating a payment plan or IRS compromise.
Organize yourself and be proactive. Having these qualities will help you reduce stress and make better decisions. Developing a strategic response could help you deal with your IRS tax issues.
Communicating Effectively With the IRS
Smooth handling of enforcement actions can be supported by effective communications with the IRS. See to it that your correspondence is concise, straightforward, and precise. Explain clearly what you want to achieve and how you intend to meet your tax obligations. Do not use technical jargon, as this may obscure the issue and distract the IRS from facts that support your case.
Provide requested paperwork immediately when responding to inquiries. Keep the facts structured logically so the IRS can understand your reasons. Document everything you have sent to them, including dates and discussions.
If you think you cannot comply with the established deadline, contact the IRS right away to ask for an extension. Keep your demeanor professional and polite even if the situation becomes stressful to you.
Seeking Professional Assistance and Resources
An IRS enforcement action can cause stress for a taxpayer, necessitating the assistance of a tax expert to change the outcome of a case. Tax attorneys know tax rules well and can guide you through the procedure.
The lawyers will evaluate your case, research possible defenses, and represent you in negotiations or appeals if needed.
Consult a CPA or an enrolled agent on tax-related matters. They can advise you regarding your financial situation and assist with the organization of relevant documentation.
Do not hesitate to look into other resources such as the IRS site or taxpayer advocate groups. They can offer valuable advice and support in resolving your tax issues.
