Get ready for increased scrutiny by the Internal Revenue Service.
With Washington searching for ways to cut the budget deficit, IRS officials face intense pressure to collect more revenue. The agency plans more audits. If you become an IRS target, what should you do?
For many people, the answer may seem simple: Surrender as quickly as possible, no matter how good a case you have.
Even if you are sure you are right and have all the records to prove it, fighting the IRS, one of the most powerful government bureaucracies on the planet, can be the ultimate nightmare. Seemingly routine struggles can drag on for years, leading to endless frustration and sleepless nights. Even those who eventually triumph may wonder if the fight was worth all the time, effort and expense.
Just because the IRS says you owe money doesn't mean that's correct. The agency makes mistakes-plenty of them, even in computing penalties and interest.
How foolish it can be to pay what the IRS says you owe without "thoroughly investigating" the subject.
But if the amount in question is relatively small and the issue is confusing, some may conclude it isn't worth the time, trouble and expense of challenging the IRS and may decide to pay in order to make the problem disappear. It depends on the details of each case, including how confident you are of victory and how much time and expense you are willing to devote to the battle.
GET HELP: Having a smart, well-prepared tax expert on your side can be a tremendous advantage. Not only will they know the ins and outs of the tax code, but also they can take over the often-exhausting job of dealing with the IRS -and help you decide how far to push a fight.
