Tax season is once again upon us. Every year, thousands of taxpayers dread facing tax audits, and for a good reason. It is extremely onerous when federal and state tax authorities start demanding money from you to pay off a tax debt that you have.
But do you really know what a tax audit is all about? Can you deal with this matter on your own? What are the consequences if the outcome of the tax audit proves that you do owe federal and state tax authorities a tax debt? And most importantly, what do you need to do when find yourself facing a tax audit? These are just some of the questions that this presentation intends to answer.
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Tax season is here once again and
every year thousands of taxpayers are
subjected to tax audits for various
reasons such as not reporting all of
your income, erroneous tax returns
and incorrect claims.
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If you are one of the thousands of taxpayers
facing a tax audit from federal and state tax
authorities, here are the truths about tax audits
that you should know and understand.
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But first... WHAT IS A TAX AUDIT?
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A tax audit is a review or examination of an organization
or an individual taxpayer's financial information and
accounts to ensure that all the information they provided
are in accordance with tax laws and to verify that the
reported amount of tax is correct.
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1. Everyone can be
subjected to a tax audit.
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All taxpayers are at risk of being
subjected to a tax audit regardless
of which income bracket one
falls under. Mistakes in filing,
incorrect information and
incomplete documents CAN all
lead to an audit.
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2. Tax audits COULD lead to
legal actions taken against
you.
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Owing money to the IRS is different
from owing for a credit card or other
form of unsecured loan. Federal and
state tax authorities have expanded
their collection capabilities. Depending
on the outcome of the audit, the IRS
can impose wage garnishment, levy
assets such as bank accounts and
even file a tax lien. Worse, it could also
mean jail time if proven that you've
committed fraud.
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3. It's difficult to deal with tax
debt and tax audits on your
own.
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Dealing with tax audits on your own
can be risky as it needs a solid
understanding of the very complex
federal and state tax laws. Any mistake
committed along the way could mean
hefty penalties imposed on you along
with other legal consequence that may
apply.
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4. Not everyone who applies
for a tax relief solution to the
IRS will get accepted.
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According to the most recent IRS
Databook, the current OIC (Office In
Compromise) acceptance rate is
at rate is 40.32%. This means almost
half gets declined and will have to find
another way to resolve their tax debt
issues otherwise, face the legal
repercussions of a tax audit.
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5. There are various
programs that will help
resolve your tax issues.
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The IRS may have powerful collection
tactics to satisfy any unpaid tax debts
but there are also tax relief programs
available to get a solution in place
depending on your current financial
situation such as Offer in Compromise,
Interest Abatement, and Currently Not
Collectible.
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What you need to do if have tax debt
issues:
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1. Take action immediately.
2. It is imperative that you get federal and/or state tax
assistance from a reputable tax debt relief company.
3. Be able to request a Stay of Enforcement before IRS
tax officers impose any legal actions on you to get
your tax debt paid off.
12. z To learn more about tax relief programs,
visit:
https://www.slideshare.net/Curadebt/tax-debt-relief-with-
curadebtcom-52143118
https://www.youtube.com/watch?v=dN-b8RDJp7I