Reduce Back Taxes and IRS Penalties - 7 Little Secrets the IRS Hopes You Never Learn

With years of record deficits (and even more in theThere have been whole books written about avoiding
proposed budget), the government is more eager thanback taxes and IRS penalties. Every year those books
ever to get every dollar of back taxes and IRSget updated. Any good Tax Resolution Specialist will
penalties from delinquent taxpayers. If you find yourselftell you that the best way to avoid an audit is to file
owing back taxes and IRS penalties, here are theand pay on time. If you can't pay in full, at least make a
seven little secrets the IRS hopes you never see.token payment of $5 to avoid nonpayment IRS
7 secrets to know to reducing back taxes and IRSpenalties. If you get an audit letter, they know the steps
penalties:to take to end the audit quickly. You wouldn't believe
1) Knowing your taxpayer rights gives you leverage.how long some IRS auditors take to perform an audit.
The most significant way to reduce back taxes andJust to give you an indication, once your audit reaches
IRS penalties in the audit process is to know yourthe 28th month stage, the IRS will ask you to file Form
rights as a taxpayer. Instead of feeling powerless in872, granting the IRS an extension to continue auditing.
the face of potentially crushing back taxes and IRSEvery tax attorney or Certified Tax Resolution
penalties, a good tax attorney will allay your fears bySpecialist in the country will tell you not to sign without
informing you of all the rights and options that aretrying to negotiate a back taxes and IRS penalty deal.
available to you.Once an audit reaches the THREE-YEAR mark, Uncle
2) Filing unfiled tax returns is an opportunity for a freshSam can't levy IRS penalties. (This almost never
start.happens.) So unless you want to possibly lose almost
You can get a fresh start on your back taxes and IRSthree years of your life to the IRS, let a tax
penalties, even if you haven't filed your returns inprofessional find a way to end the audit as soon as
seven years. Think of it as a back taxes and IRSpossible.
penalty reboot. Any tax professional will tell you that6) Legal representation for audits vastly improves your
you won't get off scot free (trivia point: "scot free" is achances for successful tax resolution.
13th century Scandinavian term for tax free), but youIf you get audited, talking to the auditor yourself is the
can improve your back taxes and IRS penalty situation.worst thing you can do. Everything you say is an
Yes, in addition to the regular back taxes debt andadmission of guilt (at least in the eyes of the IRS).
standard IRS penalties, you might have to pay asEvery tax attorney or Certified Tax Resolution
much as 25% in non-filing and non-payment IRSSpecialist can tell you real life horror stories where a
penalties, but in going back years to file unfiled taxtaxpayer made what they thought was an innocent or
returns, you have the benefit of 20/20 hindsight. Youhelpful comment that landed them with HUGE back
can amortize losses. A Certified Tax Resolutiontaxes debt and IRS penalties. As the proverb states,
Specialist, by submitting several years at once, may"he who is his own lawyer has a fool for a client."
get you a better deal on an individual year by reducingTreat an IRS audit as seriously as you would a murder
your back taxes and IRS penalties collectively.trial. You are looking at jail time here. Get tax help from
3) Take your pick of 148 IRS penalties.a tax attorney or Certified Tax Resolution Specialist
Just like Eskimos have 40 words for snow, Internalas fast as you can.
Revenue has over 148 different IRS penalties they7) The IRS does make deals.
CAN hit you with. Even the best tax professional mightThe tax man does make deals on back taxes owed,
not be able to prove your back taxes innocence, butincluding interest and IRS penalties. Because this is
your they might be able to persuade the IRS to levy aprobably your first time before the IRS, you don't know
lesser back taxes debt and IRS penalty. The IRSthe kind of deals you can get. A tax attorney or
auditor on the other side of the desk has a lot ofCertified Tax Resolution Specialist makes deals with
latitude to decide what IRS penalty to inflict. This isthem all day every day including negotiating Offer In
where a seasoned Tax Resolution Specialist earnsCompromise tax settlements and IRS payment plan. A
their fee. A tax professional is fully fluent in every tinytax attorney or Certified Tax Resolution Specialist has
nuance of the IRS tax code language. Watching thema professional relationship with IRS auditors. They
haggle with an agent over back taxes and IRSknow not only what deals they have personally gotten
penalties, is like watching an opera in a language youfrom the IRS in the past, but a good tax attorney or
don't understand. One virtuoso performance later, whatCertified Tax Resolution Specialist hears about the
you feared would be a dark and stormy bloodbathbest deals others have gotten from the IRS, as well.
finishes with a happy ending.You want a tax attorney or Certified Tax Resolution
4) You can reduce IRS penalties to zero forSpecialist, and their deal-making experience, in your
reasonable cause.corner.
If you've got a superstar tax attorney or Certified TaxWhen it comes to an IRS audit or reducing your back
Resolution Specialist, they can help you reduce the IRStaxes, you may feel you've been dealt a bad hand, but
penalties to zero. You may think you've got aknowing these seven little secrets to reducing back
reasonable cause to reduce IRS penalties, but in mosttaxes and IRS penalties can be your ace in the hole.
cases your back taxes excuse has been tried a millionGetting an experienced tax attorney or Certified Tax
times before without success. Only someone whoResolution Specialist to play your cards is the best
knows the IRS tax code inside and out will know whatway to walk away from this high-stakes game a
"reasonable causes" work with the IRS.winner.
5) You can end IRS audits.