When it comes to problems with the IRS, you’re never really off the hook. If you’ve received a notice from them stating that you owe a lump sum of taxes, you’re probably thinking of the right tax relief option to take. Unfortunately, such a vulnerable time can leave you open to mistakes that could lead you to deeper trouble. Here are three common tax relief myths to avoid like the plague:
Filing a tax extension keeps the IRS off your back.
A tax extension is meant to give you more time to file your return. If you owe taxes, the IRS will still keep sending you notifications. Don’t expect them to be lenient because your request for extension was granted.
The IRS has filed a Substitute for Return (SFR) on your behalf, and you can no longer file your own.
You don’t have to accept the IRS SFR as your own return. No matter how late you are in filing, you can still send in your own return for any missing years.
You can avoid an IRS audit by filing at the right time.
Despite what you may have heard, there’s no special time of year to file tax returns that will keep you from being audited. Your best option for tax relief is to hire a good income tax attorney who can help you negotiate a tax solution that the IRS will find impossible to refuse.