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Why Failing To Respond To An Irs Inquiry Is A Very Bad Move
If you want to snicker at the IRS, there is one definite area where you can do it – computers. The effort of the Agency to upgrade its computer system to current technology has been something of a joke…a major one. It seemed the Agency took two steps back for every one it took forward. After years of thrashing around, the new system is up and the IRS has largely become automated. Why does this matter? It matters because many of the initial notices you receive from it are automatically issued. These are known as “correspondence audits.” The computers notice some missing piece of paper or conflicting information and automatically kick out a letter. The letter often just asks you to provide documentation, explain the conflict or pay an extra tax due. You must take action on the notice. I am not suggesting that you cave and do whatever the IRS wants, just that you make some kind of response. This is important because ignoring the notice gets you reclassified as a taxpayer with a history of non-compliance. As you might guess, this is not a good thing. Instead of dealing with computers and operators, you have a good chance of having your file land on the table of a revenue officer. These are the people that can make your life miserable with intense audits, property and bank account liens and so on. The IRS is a huge beaurocracy. As with any government agency, knowing how to work your way around the agency is half the battle. Being classified as a non-compliant taxpayer is definitely a turn down the wrong road. Avoid this at all costs. When the IRS sends you a notice, respond to it even if you are just going to fight it. You’ll be better off for it. Article Directory: http://www.articledashboard.com Richard A. Chapo writes about IRS debt forgiveness and a host of other income tax subjects for BusinessTaxRecovery.com |
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