Five Tips for Fighting an Audit
Written by Nickel - One Comment
In case you’re not able to avoid an audit by avoiding the red flags that I talked about earlier, CNN/Money has some tips for dealing with an audit once it happens.
- Choose your battles — Before you decide to fight back, make sure it’s worth it.
- Don’t delay — If you receive a notice form the IRS that you owe them money, file an appeal within 30 days. If not, the government could seize your property in lieu of payment.
- Seek advocacy — Consider enlisting the help of the IRS Taxpayers Advocate Office.
- Negotiate — If you can’t pay what you owe, negotiate an incremental payment plan. If you’re in bad enough shape, it’s even possible that you’ll be able to reach a compromise on the amount that you owe.
- Go to court — There’s a reason that this one is listed last… But if all else fails, you can always got to U.S. Tax Court, and you won’t have to pay the contested amount until after your case has been heard.
Source: CNN/Money
Published on February 27th, 2006 - One Comment
Filed under: Taxes
email this article
- bookmark it
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
Related articles...
» Tax Audits are on the Rise» One Year Ago This Week (February 25th – March 2nd)
» Have You Filed Your Taxes Yet?
» Surviving Income Tax Season Without an Audit
» From the Archives (February 10th – March 15th)
» The #1 Tax Tip for 2008
» Ten Tips for Avoiding an Income Tax Audit
» 2007 Taxes Due on October 15th
Was this article useful? Please sign up to receive our content via e-mail:
You will receive only the daily updates, and can unsubscribe at anytime.
Great deals...
Readers’ choice...
Recent articles...
- Effect of Foreclosure, Short Sale, and Bankruptcy on Your Credit Score
- DIY Garage Kayak Racks: Fast, Frugal, and Effective
- Lending Club $25 Bonus Reminder
- Coupons are a Waste?
- How to Save Money on Pet Care
- Best HSA Custodian?
- Considering a High Deductible Health Plan
- Pay Back the Homebuyer Tax Credit?
- How to Find a Good Deal
- How Much Does Your Debt Cost?
Recent comments...
- Tim Rosen: Pros and Cons: Pros: a.) A systematic discipline to save/invest on a regular basis, for a...
- Matt Jabs: @Tim: Thanks, I hope this article helps get even one person on the...
- Tim Rosen: Excellent Matt! A very practical, real-world plan that I believe anyone can "flesh out"....
- Jerry Robertson: Your article has great information about the large companies going out of business, but...
- laura: I have a foreclosure on my credit from Jan 2007 and my FICO score...
- nickel: Ron: Good question, and I have no idea as to the answer. It could...
- Christina: While foreclosures wreck less havoc on the score than a bankruptcy (according to your...
- Ron: Why do you think those large mortgage lenders are switching over to Vantage? Does...
Most talked about...
- Dave Ramsey is Bad at Math
- $8,000 Homebuyer Tax Credit
- Dish Network Customer Service SUCKS
- How to Claim the First-Time Homebuyer Tax Credit
- $15,000 Homebuyer Tax Credit
- Reduced Credit Limits? Share Your Experience
- Would the "Fair Tax" Gut the Economy?
- Tax Stimulus Rebate Payments to Start Early
- Pay Off Mortgage Early? Or Invest?
- The Best Online Savings Accounts (Updated!)
- Life's Too Short to Drink Cheap Beer
- $7500 First Time Homebuyer Tax Credit
Disclaimer...
The terms of third-party offers referenced on this website are subject to change without notice. While we strive to maintain timely and accurate information, offer details may be out of date. Visitors should thus verify the terms of any such offers prior to participating in them. Please see our terms of service for additional details.
Stumble It!
Digg It!
Tip It!
del.ico.us
Facebook
My fraternity had a problem a while back regarding the cook we had hired. We thought he was 1099 but he didn’t officially qualify as an independent contractor (he didn’t fit all three rules) so we had to pay back taxes. As an organization with little reserve funds, we had to negotiate (and did successfully) with the IRS to reduce the penalties. If you did nothing wrong, they’re more likely to reduce penalty charges.
Comment by jim — Feb 27th 2006 @ 1:02 pm