" " 10 Important IRS Facts You Must Know | IRS Solver " " " "

The IRS goes diligently about its task of collecting every dollar taxpayers owe the government. Taxpayers, for their part may work hard to frustrate its efforts. Over decades, the government has approved laws and regulations that make taxpayer’s lives increasingly transparent to it. The key to staying out of trouble is complying with tax law, while applying it to our advantage where can.

Important IRS Facts

1. The IRS Can Penetrate Your Privacy. The Internal Revenue Service has right of access to your credit record and bank account if you are in arrears. It compares these with your tax returns to see whether they match up.

2. You Have to Report All Your Income. You must tell the IRS about every income stream you have. It will apply the rules and decide which are taxable at what rate. If you have income from medical marijuana, you must include it.

3. The IRS Has a Long Arm. It has three years to decide how much you owe. If you are late with filing, you owe it 5% of the outstanding balance for every month.

4. The IRS Has 10 Years to Collect Taxes. The clock starts from the day you file, and it has a long spring. While you negotiate, the clock pauses, and restarts at the same point if you fail.

5. It is Not Easy to Duck Your Tax Debt. Running everything through a business may not absolve you from paying tax. Furthermore, fraud penalties, payroll taxes, and trust recovery penalties apply regardless of bankruptcy.

6. The IRS Can Hit Your Paycheck Hard. There is no limit to the value of an IRS garnish order. It has already decided what you need to live on. It takes the rest. The typical amount is up to 70%.

7. However, the IRS Would Rather Settle. The IRS prefers not to go to court and is always ready to consider offers of compromise. It offers a Taxpayer Advocate Service to help you understand U.S. Tax.

8. However, anything you say to an IRS agent can go against you in a case. Treat the Service with kid gloves. If any doubt or uncertainty, it may be wise to seek professional advice and use an intermediary.

9. The IRS is Getting Tougher with Indictments. Efforts by the IRS to work with delinquent taxpayers have reduced the total indictments. However, where these are the only option, it now indicts in 83% of cases.

10. The Inland Revenue Service Wins Cases. The gloves are off when the IRS takes a criminal case to court. It has an average over 80% success rate. Moreover from 2013 to 2015, 80% of those convicted served time for not paying.

Your tax liabilities will stay around for a long, long time unless you settle them. All the time you are heaping up penalties and burning your IRS reputation. You need to know what you are doing when dealing with the Internal Revenue Service, and aim to make the right decisions every time.

Do you owe more than $10,000 in back taxes? Protect yourself. Protect your business. Contact IRS Solver for a consultation.

 

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