Naughty or nice in the eyes of the IRS?

As we enter the traditional holiday season, you may soon find yourself wondering whether your efforts this past year were enough to keep you off the naughty list.  With the pandemic related challenges to the economy, new recovery programs and interim tax changes, you could have found yourself with an unexpected tax problem.  Besides seeking asylum on the island of misfit taxpayers, what can you do to get back in the good graces of the IRS?

Here are three recommendations for dealing with your tax problem:

1.      Respond – The IRS is not looking for a pen pal, they are attempting to collect an amount they believe is owed to the government.  If you do not agree with the IRS, that’s fine, but ignoring the problem and their never-ending supply of letterhead is not going to solve the tax problem.

2.      Understand the issue – Make sure you are solving the right problem with your efforts.  The IRS will gladly let you know what they believe to be the issue, but you may need to ask first.  There are multiple ways to get information from the IRS, including the transcript delivery system, online accounts, telephone and even through the mail.  Depending on the nature and urgency of your tax problem, you could use a combination of methods to address the problem quickly.

3.      Be patient – After you understand the issue and perform your action to resolve your tax problem, the processing of your response and decision by the IRS is out of your control.  Under the current staffing and workplace environment, just about everything is taking longer than it used to.  It can be frustrating to feel that your future is waiting on the decisions of the government bureaucracy but calling in daily or writing snarky letters to IRS personnel is not going to help move things along any faster.

An IRS tax problem can be intimidating given the specific rules and procedures that have to be followed.  If you are unfamiliar with dealing with the IRS, we recommend you contact a professional who understands the circumstances of your tax problem.  To see if your case qualifies for our representation, apply today or schedule an appointment to better understand your options for resolving your tax problem.