7 Secrets the IRS Doesn't Want Taxpayers to Know
Written by Roni Deutch

Unfortunately, when it comes to tax debt collection, there are dozens of secrets that the IRS does not want taxpayers to know about. As a government agency, they want to collect as much money as they can.

1. Automatic Extensions

Although we all rush to get our tax returns filed before the April 15th filing deadline ever year, the IRS actually provides you with an easy way to get an extra six months to file your return. By requesting an automatic extension using IRS Form 4868, you can get a few extra months to file your return. In many cases, it is often better to request an extension then to file a flawed return that will result in an audit or back tax liability.

In addition, filing for an extension alone carries no penalty with it. Rather, it is the failure to pay on time that will result in interest and penalties. An automatic extension does not extend the deadline to pay taxes to the IRS. Therefore, if you anticipate having an outstanding tax liability, you will still need to pay the IRS by April 15th to avoid penalties and interest. On the other hand, if you are expecting a refund, then you need not worry about being penalized for requesting an extension.

2. The IRS Wants To Settle Quickly

It may not seem like it when you are dealing with them, but the IRS actually wants to settle your delinquent account as quickly as possible because pursuing collections against you can be expensive. In some cases, the IRS can even be convinced to settle your account for less than what you owe. However, you will need to convince the IRS that because of your financial circumstances it is better for them to accept your offer to pay a reduced amount.

3. The IRS Does Not Want to Seize Your Assets

One common misconception is that the IRS prefers to seize your personal property and liquidate it to satisfy your tax debt. However, the process of identifying, locating, seizing, and selling your assets is a very difficult and labor-intensive process for the IRS. As such, the IRS would much rather settle with you then go down this path. Additionally, issuing a wage garnishment or bank levy is much easier and cheaper for the IRS to obtain. If you ignore your tax debts, then the IRS will likely try to use a wage garnishment or bank levy to try to collect from you as opposed to seizing your assets.

4. The Fear Tactic

One of the IRS's most common tactics to collect from you is the use of fear. The IRS will often remind you of their power to garnish your wages, issue liens, seize assets, etc. And they will leave it up to you to find out about your rights and options. This is enough to leave most people feeling a little fearful such that you will divulge harmful information about your tax situation or will agree to enter into a less than beneficial resolution for your particular financial circumstances.

5. The Streamlined Installment Agreement

One of the IRS' biggest secrets is the Streamlined Installment Agreement (SIA). Unlike the traditional Installment Agreement, you can get an SIA accepted by the IRS without providing a full financial disclosure so long as your tax debt is less than $25,000 and you agree to repay your entire tax debt in five years or less.

6. The IRS Can Waive Your Application Fees

When you submit an Offer in Compromise (OIC) or another tax debt resolution application, the IRS will require you to pay a small fee as well as some type of deposit. With an OIC, the IRS requires that you pay a $150 fee and a 20% deposit on your tax debt before the IRS will review your application. However, if you meet certain income restrictions, the IRS will waive both the fee and deposit.

7. The TAS Is Part Of The IRS

The Taxpayer Advocate Service (TAS) promotes helping taxpayers with their IRS problems, but they are actually part of the IRS. Although the TAS is supposed to be an independent organization within the IRS, who would you rather have fighting the IRS on your behalf - an experienced tax attorney or another IRS employee? Keep this in mind when you are thinking of requesting help from the TAS.

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About The Author:

The Tax Lady Roni Deutch and her law firm Roni Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax lawyers who can fight IRS tax liens on your behalf.