Investing in a project is a basic necessity for both the concerned parties to grow. A project that would reap a considerable payment becomes a source of worry about being under the radar to Internal Revenue Services. On a brighter side, the IRS doesn’t audit everyone, and you might just be able to save yourself from the entire hassle.
However, if IRS officers summon you, then it would be best to know inevitable mistakes that are common among people who get audited. You should try your best to avoid making these grave mistakes and first start by not ignoring the notices from the IRS.
Be aware of your rights
As an active citizen and member of your community, it is your responsibility to be mindful of your rights, especially when it comes to taxes. You end up clearing up a mess that you weren’t supposed to be a part of from the beginning.
You need to keep in mind that rules related to tax changes as you move along the globe. You can seek solace and assistance from your friends and family during this time. You can find subordinates who would have faced an IRS officer at some point in their life.
Hire an attorney
Meeting up with an IRS officer can be intimidating for anyone, no matter if it’s their first visit or tenth. Just one wrong move and you would find yourself drowning in troubles. Thus, you need someone who can guide you through the whole process, along with protecting you.
Moreover, one person who could save you from all the problems and additional headaches is a competent and experienced lawyer. While at it, you should ask for his certifications, experience, and referrals from previous clients.
Be smart about paying money
When you leave the comforts of your parent’s money behind and start earning yourself, or you have witnessed a rough household from childhood, you realize that it is not easy to make money and let alone let your hard-earned money go down the drain for no reason.
There are times when there’s a mistake made by the IRS and not you. However, you prevent your company from losing money if you would question the organization. Your lawyer has the experience and knows how to proceed with such situations. In certain circumstances, the IRS offer in compromise to better assist you.
Don’t forget the necessary documents
When you are supposed to line up a meeting with an IRS officer, your mind goes straight to one thing, and that’s a ton of paperwork. You need to have all the documents with you if you desire for that IRS officer to be in your favor.
Many countries allow professionals like appraisers, certified public accountants, enrolled agents, and attorneys. They can help you to get your documents in an orderly fashion as well as get them verified from the concerned officer in a given situation.
Difference between IRS officer and IRS agent
The kind of worry an officer causes to a person can completely overshadow one most important thing. There is a stark difference between an IRS officer and an IRS agent, and it’s crucial to be mindful of the same.
The IRS officer is supposed to collect your taxes. However, the IRS agent is responsible for the details concerning auditing a person. According to the proper code of conduct, you would be receiving a few notices. When you fail to pay heed to warnings, then the Internal Revenue Service is bound to send an officer.
Shortcomings of an IRS officer
There are certain limitations to the powers and authority of an IRS officer. The flaws of an officer include the inability to make arrests, intimidating you with a badge, forceful entry in your house and office, violent behaviors, or death threats.
If you are aware of what an IRS officer can and can’t do, then you can be more vigilant about the complete process. This information can be of great help to make sound decisions to plan your next few steps. The attorney can only suggest a plan of action; the real powers lie within your hands.