Tax Expert Explains Six Common Tax Relief Myths

The October 15 tax extension deadline is less than a week away and taxpayers facing IRS debt will want to resolve their tax issues sooner rather than later. When it comes to finding IRS tax relief against the most brutal collection agency on the planet ? knowledge is power. But amongst? ?helpful? information are tax relief myths that are incorrect and can make IRS tax issues worse. To avoid tax pitfalls, taxpayers are advised to partner with a certified tax resolution specialist who can tackle these myths and help them differentiate fact from fiction. Here are the six most common tax relief myths taxpayers don?t want to fall for:

Tax Relief Myth #1 ? An IRS ?Substitute for Return? (SFR) Is the Final Word

Not true. Taxpayers have the right to file their own tax return, not matter how late it is. Most clients seeking tax resolution have an average of 4-11 years of unfiled tax returns. The first step in handling their case is to go back and properly file their delinquent tax returns so there is an accurate accounting of the tax debt which is generally less than the SFR states.

Tax Relief Myth #2 ? A Tax Extension Can Protect You from IRS Scrutiny: First off, a tax extension is not a form of tax relief. Many people believe this myth, but in reality a tax extension just delays the time you have to file, not to pay. If you can?t pay your tax debt, the best strategy is to file your taxes on time and include a check with your return even if it?s $10. This action stops the 25% on the failure to file penalty and shows a good faith effort to take care of your tax debt.

Tax Relief Myth #3 ? You MUST Pay Your IRS Tax Bill in Full: This myth goes back to a time when there were only a few options for tax debt settlement.? Today, because the Great Recession has left many unable to pay their tax bill, the IRS is offering more methods of payment, and payment plans to more people such as Offer in Compromise and an Installment Agreement than ever before. Important to Note: the IRS is on this planet to aggressively collect taxes. If you owe them but are facing financial hardship, consulting a tax attorney or certified tax resolution specialist is a good choice for finding the best IRS repayment plan that suits your financial needs best, not theirs.

Tax Relief Myth #4 ? People Who Don?t File Tax Returns Are Lazy and Don?t Care: Most people who have not filed their tax returns are neither lazy or uncaring. They are typically procrastinators paralyzed by fear about resolving their IRS tax issues who don?t file hoping the situation will go away. A certified tax resolution specialist can help these folks get back on their feet by filing their delinquent tax returns, making them tax compliant and in some cases, getting them a tax refund!

Tax relief myth #5 ? Filing Dates Increase your Chances of an IRS Audit: The date you file your tax return has little to do with an audit. IRS audits are generally triggered by the tax reporting you do such as declaring huge business losses, unreasonable deductions or incorrectly reporting your income from W-2?s or 1099 forms.? You want to avoid an audit at all costs, but if facing one make sure you employ expert tax representation because do not want to go into an IRS audit alone; you will lose.

Tax relief myth #6 ? You can?t afford to hire a tax resolution specialist: This tax relief myth can cost you a lot of money and in some cases, your freedom if your tax problems include potential prison time. The law states you have the right to have someone represent your interests and that includes tax resolution. A reputable Certified Tax Resolution Specialist or tax attorney can not only help you reduce IRS penalties, in some cases they can negotiate your tax debt be eliminated based on your current ability to pay.

More Tax Help, IRS News and Tax Relief Tips:

1. IRS Offers Tax Help Tips-Worker Classification
2. Tax Relief Weekly News Round-Up
3. Delinquent and Unfiled Tax Returns? 8 Steps to Resolving Them
4. Talking Tax Resolution with Fox 11 Tony Valdez
5. New Offer in Compromise Policies Bring Tax Relief

Tags: certified tax resolution specialist, delinquent tax returns, Installment Agreement, IRS audit, IRS penalties, IRS tax issues, irs tax relief, Offer in Compromise, tax debt

This entry was posted on Thursday, October 11th, 2012 at 3:05 pm and is filed under 365 Ways to Keep the IRS at Bay, Filing Unfiled Returns and Replacing Substitute for Ret, IRS Installment Agreements, IRS payment plan, IRS tax audit, Offers in Compromise, Penalty Abatement, Tax news and tips, Unfiled Returns - Delinquent Tax Returns, income tax relief, tax help. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Source: http://www.taxresolution.com/blog/tax-expert-explains-six-common-tax-relief-myths/

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