09 May How Tax Compliance Keeps You Out of Trouble with the IRS
People believe that the IRS will always have some reason to visit or ask for more money on taxes or something along those lines.
The reality is much simpler. As long as you follow the rules, they won’t bother you at all. In essence, simple tax compliance leads to zero problems with the IRS.
However, the problem here lies is that most US citizens don’t know what tax compliance truly is. More specifically, what is included in it? What are all the things you must do to achieve tax compliance and never have any troubles with the dreaded IRS?
Pay What You Need to Pay
Naturally, the central part of tax compliance is paying your taxes. But there’s more to it than that.
Paying your taxes is more about filing your tax returns on time. You can even do it on an extension. Furthermore, if you can’t pay until the due date, that doesn’t mean that you shouldn’t file. You must ensure that you file timely.
Additionally, you need to realize that every income is taxable. It doesn’t matter if it’s cash, or lottery winnings or gambling wins – everything is taxed. The IRS is greedy here, and you can be sure that they will come to visit if you omit to pay taxes on some random earnings you received.
Be Communicative and Reply to Every Notice
You might have thought that tax compliance is all about paying taxes. However, you still have to reply to every notice you receive from them. It’s good to keep a record so you can reply with sufficient information when needed. Most of the audits that the IRS starts are correspondence audits meaning that they might ask you for some particular information like a specific deduction or something along those lines. By keeping detailed records, you will always have an answer for them.
Additionally, if an audit is for something else, you will need to keep replying in writing. It is because, for some smaller problems, they might eventually stop bothering you as long as you stay ‘fighting’ them in writing. So respond to every message you receive from them.
If they don’t budge, it means that some deeper problems have to be dealt with. At that point, you might want to consider hiring a tax resolution specialist as it’s not advisable fighting the IRS on your own.
However, the thing about tax compliance is that you should strive to avoid these problems. You can do that by following what we’ve told you, but you can also consider asking us for help. We at Golden Tax Relief don’t only focus on dealing with the IRS on your behalf; we can also answer most of the tax-related questions you have. We can also help you learn how to deal with the IRS in a way that will keep you out of trouble for a long time.
If you’re interested, feel free to contact us over our site or call us at 844 229 8936