As we say at IRS Away, “Don’t let the IRS destroy the life and business you have built because you do not know how to defend yourself.” You may ask, “Defend myself from what?” What kinds of tax problems do people most often find themselves in? Is there a “Top 10” of IRS tax problems I should try to avoid?
According to Forbes Magazine, there is such a list, entitled “The Top 10 Most Litigated Tax Issues.” This is a list of tax problems that can tie up your time and your income, and may even end up in IRS tax court. Let’s take a look at some
Common IRS Tax Problems
Tax Problem 10: Relief from Joint and Several Liability
When you get married and file taxes jointly with your spouse, you agree to take on the tax liability of your spouse, and vice versa. There are times, though, that one spouse will seek an exemption from this rule, claiming to be an Innocent Spouse.
Tax Problem 9: Civil Actions to Enforce Federal Tax Liens
When you refuse or neglect to pay your taxes, the IRS takes action, sometimes filing a lien against your property.
Tax Problem 8: Frivolous Issues Penalty
For a variety of reasons, there are people who believe that the IRS doesn’t have the Constitutional authority to collect taxes. So, some “take a stand” by refusing or delaying their tax payments. Not surprisingly, the IRS ALSO takes a stand on the issue.
Tax Problem 7: Charitable Deductions
If you itemize deductions on your federal income tax return, you can claim donations to charitable organizations. Problems arise when the IRS questions the eligibility of the charity, or when they question the fair market value of certain donations (an old car, the furniture you gave to Goodwill, etc.)
Tax Problem 6: Failure to File and Failure to Pay Penalties
This is pretty straightforward. When you fail to file or pay your taxes on time, the IRS may impose penalties such as fines or interest. It is up to you to establish a reasonable cause for your actions.
As we said, this is half of the story, part 2 is coming soon. Obviously, you don’t want to find yourself in any of these situations. But, tax problems arise. And, sometimes people are mistakenly targeted by the IRS. Regardless, there are instances where the charges and penalties can be litigated, negotiated, reduced or eliminated altogether.
Contact IRS Away Today
That is why you should never face an IRS tax problem alone. The IRS Away team offers free consultations and peace of mind knowing that your tax problems are being dealt with effectively and professionally. Contact tax attorney Joseph M. Arndt III at (803) 771-4037 for a free consultation.