Although some people refer to the IRS as an extremely brutal collection agency, this agency is not that difficult to deal with if you are familiar with everything that you need to know. Unfortunately, some people believe everything they hear and this is how certain myths about tax relief were born. In order to avoid having problems with the IRS, you must not believe absolutely everything that you hear and you must familiarize yourself with some of the most common myths about tax relief.

First of all, some people say that there is nothing that can be done after the IRS comes up with a substitute return for a tax return that you failed to file. This is not true. People can file their original return and the best course of action is to hire a professional who will know how to get the most of the current situation and get the tax relief that can help your financial situation a lot. When you hire a professional, he will ensure that you take advantage of all the deductions, credits and exemptions that you are entitled to.

It can also be heard that a tax extension is a type of tax relief. Although getting a tax extension is one of the possible options that you have, this is definitely not a type of tax relief. An extension means that you have more time to file, but you can’t postpone the payment. Even if you don’t actually have enough money to pay the taxes, file the return anyway because this is how you will avoid the penalty charges.

There is also a quite common misconception about the installment agreement. This is an agreement according to which you don’t have to pay your taxes in full right away. It sounds like a good deal, however, an installment agreement is actually a bad idea because people end up paying off the entire amount of debt plus interest. A much better idea is to pay your taxes in full and in case you have financial problems that make it difficult for you to do this, you can either ask for a loan or you can use your credit card.

Another myth is that people who are broke and can’t pay off their debt to the IRS actually don’t have to do it. Keep in mind that the IRS has the right to collect from you and they can levy bank accounts, garnish wages and more and they will do it if there is no other choice. Just because you are broke does not mean that the IRS will forget all about your debt. If there is a way to collect from you, they will do it. However, a hired professional that will negotiate for you with the IRS can manage to reduce or sometimes even eliminate your tax debt depending on your financial situation.

And finally, most people believe that hiring a professional should be done only if a person has a major problem with the IRS. Although it is extremely advisable to hire a professional in such cases, it is also advisable to hire a professional in case you don’t know how to deal with things properly or if you want to be sure that you have taken advantage of all the deductions, credits and exemptions that are available to you. The most important thing to keep in mind is to always listen to a professional that actually knows what he is talking about because this is the easiest way to avoid getting in trouble with the IRS.

Put simply, the job of the IRS is to make sure that everyone obeys the laws. They usually do this by reviewing taxpayers’ financial statements. Since the IRS agents do this on a daily basis, they are extremely skillful and can find misstated facts and errors very quickly. They [...] Continue Reading…

Business people as well as individuals sometimes talk about their taxes and the IRS. As a result, there are many myths about the IRS and choosing to believe such myths is a mistake that can cost you a lot of money and frustration.

The most common myth is that you [...] Continue Reading…

We know how much everyone dislikes paying their taxes, but this is something that simply has to be done and there is no doubt about it. Almost all of us do our best to do the right things and more importantly, to do the right things on time. However, [...] Continue Reading…

There is no doubt that doing your own taxes is time-consuming, challenging and can be even frustrating at times. However, even if you have someone else do it for you, this does not mean that you have successfully avoided all the headaches and problems that might appear along the [...] Continue Reading…