In 2011, the IRS launched the Fresh Start program, with the goal of giving late-paying citizens a way to pay off their tax debts. The program allows the collection agency to be more amenable to those who want to work out their late tax payments. With that in mind, here are a few tips to achieve positive results when you are faced with an IRS audit:
Always file your tax return
Even if you can’t pay the IRS, it’s important that you file your return regardless. If you don’t, you may have to pay penalties that are bound to be significantly larger than what you would have paid had you filed your return.
Don’t Ignore the IRS
IRS problems can only get worse over time. Thus, it’s always best to confront an IRS tax issue head on and in a proactive manner. If you choose to ignore your debt, the IRS will start to be aggressive in its collection efforts, which means your wages could be garnished, your assets levied, and if you have real estate properties, have a lien placed on them.
Discuss an installment agreement
The IRS is open to installment agreements or compromise offers. Be sure to have the help of an IRS tax attorney when entering into these.