Avoid Need for Tax Representation and IRS Tax Relief

I spend so much of my time concerned about those of you already in need of tax representation and IRS tax relief that I don’t discuss ways to stay out of IRS trouble as much as I probably should. As much as I want your business if you have a tax problem, I started Tax Masters to help people stay on the right side of the IRS. To that end, I thought I’d let you know some of the surest ways to stay in compliance with the IRS.

Tax season always gives us a boost in attention. We get more Internet hits, more calls, and more contacts from January through late March. Most of those people are not actually in need of IRS tax relief, but are contacting us for tax preparation. While we don’t offer current year tax preparation for non-clients, we do have a little-known program for preparing current returns for previous clients. It should come as no surprise to learn that we have quite a few former clients who continue to come to us each year for tax preparation after we helped them resolve their tax problems. As with any business, having clients come back time after time speaks to our level of success and professionalism. And this program also keeps them out of any future trouble they might otherwise encounter with the IRS.

The Secret to Avoiding IRS Problems

The secret to avoiding IRS problems is really no secret at all. Step 1, keep good records, receipts, mileage logs, and track your deductible expenses carefully. Step 2, file your tax returns every year. Step 3, pay what you owe on time every time. That’s it.

Of the three steps listed above, step 2 is the most critical. The National Taxpayer Advocate commented recently in the annual report for 2008 that there were more than 500 changes in the tax code in 2008 and that the code has now grown to over 3.7 million words in length. Reading 10,000 words per day, it would take you over a year to read the United States tax code. It’s no wonder that people who hire quality tax professionals come out better in the long run than those who prepare taxes themselves. If you read my post on the odds of winning a tax case if you hire a qualified tax representative from a couple weeks back, you’ll see a pattern emerging in the National Taxpayer Advocate’s observations.

By and large, taxpayers who have representation or help in preparing their returns are more likely to stay out of trouble with the IRS and develop fewer tax problems.

Complication Keeps Audits Simple for IRS

As long as the tax code is as complex as it is, the IRS has a good chance of finding something wrong in self-prepared tax returns. More than any other factor, taxpayers who prepare their own returns (including those who use online or consumer-targeted tax prep software solutions) run a greater risk of being audited or having their taxes adjusted by the IRS. While complicating the tax code is probably not an intentional ploy to ensnare more taxpayers and charge them more money, that’s in effect what the complication causes. Self-prepared returns make auditing easy for the IRS. By their own admission, the IRS studies more closely every self-prepared return. So why not spend the little bit of extra money it takes now to avoid future problems?

Tax Masters, Patrick Cox: Offering Tax Representation and IRS Tax Relief

As ever at Tax Masters, we offer sound tax representation. While we don’t accept clients who need only the current year’s tax return completed, we do happily help current and former clients with current year tax returns. And we strongly encourage you to seek the assistance of a good tax advisor on your 2008 taxes. If you already have back taxes or are being targeted for an IRS audit, go ahead and take advantage of our free evaluation today. We can help you reach a favorable settlement with the IRS that both you and they can live with.

Until you need us,

Patrick Cox, Tax Masters