How to Call the IRS Bluff

This report is really intended for those that walk the edge or walk on the wild side. That person that wears red around the bulls. The one that would hiss at a rattlesnake or maybe punch a grizzly in the nose. In other words, this report is not for the weak kneed or faint of heart.

This report suggests you stand up to the BadMan and call his bluff. It is a good idea to have the ability to assess the situation before trying to call someone’s bluff. Telling a gunman to go ahead and shoot you is probably a bad idea but telling the taxman to just try and take your house is as bad an idea and maybe worse.

But, sometimes you just have to stand up for your rights and if that’s what you're facing, keep reading.

Read that quote again. Is that scary or is it insightful? The IRS Bluffs the American Public every day. Is this behavior still as rampant today as in the past?  Who knows?

Here are some common bluffs.

Bluff #1:  You have no right to challenge an auditor's decision.

The perceived power an IRS auditor has lies in the fact that he is one of the most feared IRS employees. The fact is, an IRS auditor really has no power to change your tax liability, charge you a penalty or seize your assets.  In fact, an IRS auditor has no power to do anything without your permission.

Every citizen who disagrees with an IRS auditor has the right to bring an audit decision to a higher level of authority. This process is called the "Right of Appeal." Knowing this taxpayer right is often enough to prevent an auditor from trying to bluff you into paying more tax than you owe. Without a doubt this is the best negotiating tool one can have.

IRS internal statistics show that when challenged, the decisions made by IRS auditors are wrong more than half the time. If an auditor tries to deny your rights, you have the right to appeal that decision and recover fees and the cost of enduring an unfair audit.

These costs may include travel, professional fees, postage, parking or any other cost incurred to defend against unjust claims. Just make sure you prevail.

When and how to use Tax Court:

An ounce of prevention is worth a pound of cure, as they say. Knowing this right can prevent you from ever having to use it. Petitioning the Tax Court is the ultimate appeal recourse for a decision made by an IRS auditor. IRS statistics show that citizens who use their right to appeal auditor decisions, along with their right to petition the Tax Court, win 60-90% of the time.  IRS statistics also show that, in most cases, when a Tax Court petition is filed, the case never goes to trial. Strange that in every case, the IRS tries to avoid a trial and negotiate a settlement. Clearly, Tax Court can be your answer but you must know how to use it to your advantage.

continued...

<< Previous    [1]  2  3    Next >>