| The IRS, or Internal Revenue Service, is a tax | | | | have to face the wrath of the IRS agency. The |
| collection and enforcement body that is part of the US | | | | punishment is stringent and involves harsh fines and |
| Department of the Treasury. The primary duty of the | | | | penalties. |
| agency is to ensure that people pay their taxes | | | | To avoid situations such as these, you need to be |
| punctually and honestly. This is not an easy task | | | | aware of the prevailing tax laws. If you have problems |
| because the agency has to deal with the usual tax | | | | interpreting them, you can seek the services of a tax |
| evaders. Though there are harsh fines in store for the | | | | law firm. Based on your income and assets, the |
| tax evaders, there are cases when honest taxpayers | | | | consultants would be able to give you an exact figure |
| are forced to pay penalties for no fault of theirs. | | | | of the tax you are supposed to pay. |
| Consider a scenario where the IRS unintentionally | | | | You should keep a record of your payment receipts. If |
| makes an error in listing the liabilities of a person in their | | | | you are not sure how much you have to pay, you can |
| records. The person, in these circumstances, will be | | | | take your records to the RO (revenue officer) who |
| penalized for the mistake if he is not alert enough. | | | | can then help you out. |
| Then there may be situations where people | | | | Again, circumstances may be such that you are |
| misinterpret the tax laws and pay more taxes than | | | | unable to pay your taxes because you are short of |
| required. Getting a refund is not an easy process, | | | | funds. You can contact a tax law firm and seek |
| though in due course the person will get the money. | | | | professional advice. In such situations, you will be able |
| In contrast to the above, there may be people who | | | | to pay your tax dues as structured installments based |
| pay less than the amount that is actually due. They | | | | on your agreement with the IRS. |