Last week, we wrote a post about the inefficient collecting efforts of the Internal Revenue Service. Despite the inherent weaknesses that are going to show up when an agency tries to collect taxes from 316 million people, the collection effort is going to catch some people who owe the federal government money.
What can you do to expedite this process when the IRS comes knocking at your door? What should you do to ensure that your case is being handled properly and that your rights are being upheld and respected? Here are a few steps to take:
- Get in touch with the IRS when they reach out to you. When they contact you, you should communicate with them in a respectful and collaborative way to try to fix the solution at hand. Burying your head in the sand and ignoring their letters and/or calls will only make things worse.
- The interview with the IRS is crucial. You shouldn’t do it alone, so it behooves anyone going into an IRS interview to have legal representation to make sure their rights are upheld. At the same time, remember that the IRS must inform you of these rights in the interview.
- There is due process, and you do have options. These are important things to remember. The IRS has this reputation of being the “big bad wolf” that comes down hard on anyone who doesn’t acquiesce to their demands. However, they have to follow due process as well — and they will actually work with you to make sure your tax debt is paid off. Hardship, bankruptcy and payment deals can be arranged so that your tax debt is dealt with effectively.
Source: FindLaw, “Ten Things to Remember When You Owe the IRS,” Accessed Oct. 7, 2014
