Monday, March 30, 2009

10 Things the IRS Won't Tell You

SmartMoney magazine recently published "10 Things the IRS Won't Tell You." Here's what the article listed:
  1. Like it or not, you may need help with your taxes.
  2. You don’t have to be rich to get audited.
  3. Fear is often our best weapon.
  4. The AMT is our ATM.
  5. Just because we billed you doesn’t mean you owe us money.
  6. If you don’t pay, we’ll sic a collection agency on you.
  7. Want to go green? We’ll help pay.
  8. April 15 isn’t necessarily a hard deadline.
  9. We may be a government agency, but that doesn’t mean your data’s safe.
  10. We may still have your refund.
Conversely, there are a few things the IRS will tell you that are not necessarily true. Peter Pappas, a CPA and attorney who writes the Tax Lawyer's Blog, listed the following examples of this:
  1. Instead of paying a lawyer, just pay us.
  2. If you don’t pay your taxes, you might go to jail.
  3. Your attorney isn’t returning my calls.
  4. Now, it's personal.
  5. Your attorney isn’t cooperating.

The IRS may make the same statements in reference to your CPA. Pappas adds: "Of course, not all IRS revenue officers engage in shenanigans like these, but enough of them do to make it a real problem."

With current economic conditions, we're supposed to start seeing a "kindler, gentler" IRS. We'll see how that works out.

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