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Guiding You Through The Legal Process

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How to properly resolve federal tax matters

On Behalf of | Jan 31, 2017 | IRS Issues

Most Georgia residents understand that the best way to avoid the wrath of the IRS is to file a tax return and pay taxes on time. However, those who don’t follow those rules aren’t necessarily going to be sent to jail. Typically, the IRS would rather work out a solution without spending a lot of time and money. Criminal investigations are generally the final step after other methods of resolving a case are not effective.

In addition to filing and paying taxes on time, it is important to respond to an IRS notice. Ignoring a letter from the IRS is not going to make a matter go away. Instead, it could escalate the matter as an audit or request for information has already put that individual on the agency’s radar. As a general rule, it is a good idea to cooperate as it could result in a positive outcome in a given case.

Taxpayers are advised to remain consistent in the information that they provide to the government. As agencies may share information with each other, they may find out quickly if an individual has told conflicting stories. It is also never a good idea to destroy records as that could be considered a crime in itself. It may also make an individual look guilty in the eyes of the IRS.

Those who may owe taxes to the IRS are encouraged to resolve the matter as soon as possible. The government may take actions such as wage garnishment or putting a tax lien on a property to compel payment. An attorney may be able to help an individual negotiate with the IRS to reduce or eliminate late fees and other financial penalties. Legal counsel may also be able to help an individual get a tax lien removed.