When Mario Puzo wrote the famous dialogue “keep your friends close and your enemies closer,” he certainly wasn’t thinking about the IRS. But when we look at the finances of troubled individuals in today’s world, the IRS seems like their enemy, which threatens to come with every tool that can be used against the non-tax paying citizens.
The IRS is so powerful that it can enforce its authority on non-paying taxpayers. However, this doesn’t make the IRS any less courteous and respectful of an institution. In fact, the IRS is quite the opposite of what most taxpayers think about.
IRS is a revenue collecting institution, and it considers taxpayers the most important part of the whole tax system. That is the reason the IRS ensures that it provides relief and offers leniency to taxpayers for filing returns and paying taxes. There are two types of reasons that taxpayers must know why they need to be on good terms with the IRS.
Benefits Of Being On Good Terms With The IRS
The first and most important benefit of being on good terms with the IRS is that active taxpayers with a good cooperation record get the extensions in deadlines easier than those with not-so-good track records.
Another benefit of positive history with the IRS is that you, as a taxpayer, will more likely get favorable deals for tax resolution.
A good relation with the IRS can only be maintained by not defaulting tax payments or the payment plan if the taxpayer is paying off delinquent taxes in installments. Maintaining this helps you as there are no pending tax payments, and your credit history is not affected even if you are paying back taxes.
We think that this last benefit we are listing here is the most beneficial for you because it doesn’t just help you financially but also helps you maintain good health. Having a good relationship with the IRS means that you don’t have to worry about the IRS coming after you with all that it has. Peace of mind is the commodity we are willing to buy at all times.
Save Yourself from IRS Actions
As you know, the IRS has many tools at its disposal to collect what the taxpayers owe them.
The IRS has the power to offset any refund that you are entitled to receive. If you have a refund yet to be received for a certain period, the IRS may abolish it if you have any back taxes payable or default the payment deadline.
The second disadvantage of being not on good terms with the IRS is that the IRS doesn’t send you soft letters and takes harsh measures to collect your tax debt.
The IRS can send you a notice of Levy against your property. Tax levy means the IRS laid their claim on the assets against unpaid taxes. A good relationship with the IRS eliminates this threat in the short term. IRS will see the good terms with taxpayers as the token of a surety that the amount receivables will be submitted in the near future.
The harshest action taken by IRS to collect taxes must have the tax lien. A tax lien is also like a tax levy in many aspects, but the real difference is that a tax lien means the property is actually being sold to settle tax amounts.
The reasons mentioned above are sufficient for anyone to start building a positive relationship with the IRS. If you have a good relationship with the IRS, you don’t need to worry about any of the harsh tools coming after you. Contact the best tax settlement company near you that is USA Tax Settlement, for professional help.
Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.