Mistakes Taxpayers Make
- Not filing
- Delaying filing via extensions unless instructed to by a tax
professional
These two errors delay the start of the assessment and collection
statutes of limitations. In addition, it lengthens the time it will
take to discharge amounts claimed by the IRS in
bankruptcy.
- Not using a tax professional
- Waiting until a crisis comes up such as a wage or bank levy
before getting professional help.
These errors actually result from the IRS public relations
campaign to deal directly with taxpayers without the taxpayer
exercising the right to professional representation.
If you delay filing or paying employment taxes, you are taking
risks far above the potential payback. The IRS will penalize
you, anyone who signs checks, and anyone in a decision making
capacity in your firm. DO NOT DO THIS.
- Operating a business as a sole proprietor or partnership
You, and probably your spouse have unlimited PERSONAL liability
for all employment taxes, interest and penalties, and the matching
portion. If you operate as a CORPORATION, your personal
liability is much more limited.
- Trusting anyone from the IRS
DON'T BELIEVE ANYTHING ANYONE FROM THE IRS SAYS UNTIL YOU CHECK
IT OUT WITH A PROFESSIONAL. Practically everything the IRS
says is misleading or an outright misstatement. IT BEGINS WHEN
THEY SAY THEIR OWN NAME WHICH IS ALMOST ALWAYS A LIE. The IRS
employee will tell you anything they want then deny they said it and
demand you prove they said it. They will put things in your
file that you did not say or do. For an example of the
deception see this page on Collection Waiver.
- Not reading the information sent to you by the IRS
The IRS gets around the law by mailing lots of paper to the
taxpayer which the taxpayer rarely reads. So read it.
The IRS is obliged to explain your rights to you. This is how
they get around it.
Even doing something as simple as paying the IRS can lead to
problems. Click HERE to learn more.
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