How to Avoid Problems with the IRS

The Internal Revenue Service (IRS) is a government entity known for its strict policies regarding compliance with federal tax laws. It has a reputation for being highly detailed and often relentless in its investigations, as well as in its harsh punishments for those who attempt to avoid their tax obligations. It is no wonder that the IRS fills individual taxpayers and business owners with fear!

1. File taxes in a timely manner – It is vital to be aware of all relevant deadlines when it comes to filing taxes, as it greatly speeds up the process and ensures that you receive the refund that you may be entitled to. Furthermore, both the IRS and Ohio tax courts frown upon individuals who fail to file their taxes on time (or at all), because it raises suspicion that you may have something to hide.
2. Report all sources of income – You must file all sources of income that you have received throughout the year, including cash payments that we not taxed by the government, as well as your estimated amount of expenses. Prior to filing your documents, ensure that all information is accurate and consistent, as any deviations made during initial filling or follow-up audit raises red flags with the IRS.
3. Respond to all IRS communications promptly – Always open mail pertaining to taxes and adhere to all required actions within the stated deadlines. As with the previously mentioned requirements, ignoring an official request can and will raise suspicion.
4. Pay what you owe – You need not fear the IRS if you are making all required tax payments upon the first request. If you are unable to pay the full amount at once for a legitimate reason, speak with an IRS representative about affordable payment plans. This organization is strict but it is not unfair to law-abiding citizens!
5. Do not lie – Needless to say, intentionally withholding information from your taxes invites a call from the IRS. Whether it be your income sources, your number of dependents, your business operations, or anything in-between – remember that deceiving federal investigators is considered perjury.
6. Hire a tax preparation specialist – To ensure that you do not mistakenly report incorrect information to the IRS, it is recommended to hire a trained professional to file your taxes for you. A qualified individual will not only have in-depth knowledge of state taxation laws but will also share the blame should the IRS encounter any issues.

Do you still have concerns about avoiding problems with the IRS? Or, perhaps you have already encountered problems but are unsure of how to proceed? If so, we urge you to give us a call today. Tax attorney Kenneth L. Sheppard, Jr. is here to help protect Ohio taxpayers from the IRS and all that it entails!