Most people who receive a letter from the IRS stop breathing for just a few moments. While hearing from the IRS is not an everyday occurrence for most, it is not the end of the world. Here’s what to do if you receive an IRS notice:
- READ IT! It is amazing to me how many people come into our offices with unopened letters from the IRS. You need to READ everything you get from the IRS.
- If they are telling you that they are AUDITING you, don’t panic! It is a myth that the IRS is on a mission to punish taxpayers. The mission of the IRS is to insure compliance. If in doubt, consult a CPA, or Tax Attorney, about best next steps.
- If the IRS is telling you that you owe them money, don’t panic! The IRS does NOT put people in jail for owing them money. They prosecute people for lying to them. It is not a crime to owe the IRS money unless you intentionally avoided paying. People who just owe more than they can afford have lots of procedural rights and ways to work out terms or settlements with the IRS. Once again, consult a CPA or Tax Attorney for help.
People are often surprised to learn that there are taxes that are dischargeable in Bankruptcy. For taxes that are dischargeable, there is a Chapter of the Bankruptcy Code for everyone, from small debts owed by folks with little income, to regular debts owed by folks with middle class incomes, to large debts owed by the rich, there is a Chapter that can handle any IRS obligation.
This article is written by an attorney at Wyatt & Mirabella, PC. Always consult an attorney before making any legal decisions. To make an appointment today for a free consultation, please click here to contact us.