If you find yourself at odds with the IRS and need to understand just what is contained inside today's tax codes, you may find yourself overwhelmed by this vast amount of information. Rather than risk being penalized and punished, you should use these strategies for researching and following tax laws that most people do not understand.
Ever-Changing Tax Laws
When you look at the tax laws on the books today, you are not alone in your feelings of awe and confusion. In fact, once the written codes are compiled at the Department of Treasury office they stand more than a foot tall.
These laws are always changing with sometimes hundreds of changes being enacted each year. To make matters worse, these changes to the codes are not always well publicized, and many people simply are unaware that any changes have been made at all. When they go to file their taxes, they may inadvertently run afoul of the tax laws after these changes have been made.Complicated Language
Aside from the host of changes made each year, tax laws are written in a way that is difficult for the average taxpayer to understand. Most of the laws are unreadable because of the confusing way they are worded and the complex language used in them.When you are unable to understand what you are reading in the tax codes, it is easy for you to assume the wrong information or misinterpret laws that pertain to your tax situation. The code is full of legal loopholes that may allow you to avoid penalties.
Audit Representation
Many taxpayers like you research the laws to help them prepare for an IRS audit. If you are readying yourself for such scrutiny, it is important that you follow certain steps before going to your audit meeting. These steps include:- Gathering all necessary documentation: These documents can include past tax records, receipts, and other proof to show that you filed and paid taxes or did not intentionally break the tax laws.
- Responding timely to all IRS communications: When you avoid the IRS, you cast yourself in a suspicious and reluctant light. Responding quickly to audit letters and other communications shows that you are trying to cooperate.
- Learning about your rights: You can find out what your rights are before, during, and after the audit on the IRS.gov website. Your rights are outlined in the IRS publication 556.
- Being wise about disclosing information: You will not know for certain what the IRS wants to know from you until your meeting. Until then, you can gauge what information to prepare for your meeting based off the letters and communications you receive from the government.
Professional Tax Help
Just as you probably would never go before a judge without a lawyer, you likewise should not go to an audit without professional tax help by your side. Hiring a tax professional to help you throughout the auditing process can be one of the wisest choices you make when dealing with the IRS. Tax professionals can:- Explain today's tax laws to you
- Tell you what IRS forms to fill out
- Communicate with the IRS on your behalf
- Act as an advocate during the audit
- Tell you what your options are if the IRS finds against you
- Compromise with the IRS and not back down to attempts to intimidate you
Most importantly, your tax team can take the stress off you and let you focus on taking care of your family and working throughout the process. Audits are nerve wracking, time consuming, exhaustive undertakings. When you want to get through your audit with your nerves, your money, and your future intact you can do so by hiring tax professionals to help you.
