The IRS Will Be Visiting High-Income Taxpayers with Compliance Issues

 Posted on February 28, 2020 in Tax Audits

Paying taxes is an important responsibility that, if ignored, can cause a person serious financial and legal trouble. Individuals of all income levels are expected to fully and honestly fulfill their tax obligations, and the IRS is especially focused on bringing high-income individuals into compliance. The agency recently reported that agents will be increasing the number of in-person visits to taxpayers at high-income levels who have not filed tax returns or who have other compliance issues.

Commonly, a taxpayer incurs a tax liability not because they willfully refuse to pay taxes but because they have made a mistake or miscalculation and underpaid the IRS. Taxpayers may also struggle to resolve tax debt due to a job loss, major increases in expenses, unexpected medical problems, or other issues that cause financial hardship. If you have tax-related problems, do not wait for the IRS to visit you before taking action. Speak with an experienced tax law attorney and get the legal guidance you need to resolve these issues.  

What to Expect During a Face-to-Face IRS Visit 

If you know that you have not filed tax returns for previous years or have not resolved your tax debt, you may be worried that the next knock at the door could be from an IRS officer. However, IRS visits are rarely a surprise to taxpayers. The IRS will attempt to contact a taxpayer through mail several times before visiting him or her. If an officer does visit, he or she should provide two forms of credentials to prove his or her authenticity. The officer will then share information with you about your tax liability. He or she will not threaten you or demand immediate payment. Instead, he or she will explain the steps you need to take to become compliant as well as the consequences for continued noncompliance.

What if I Cannot Pay My Tax Debt in Full?

Many people procrastinate when filing tax returns because they worry that their tax debt will be impossible to resolve. They may assume that because they cannot pay in full, there is no benefit in filing a return or communicating with the IRS. However, the IRS has many payment options available to taxpayers, including installment plans. A taxpayer may also qualify for an “offer in compromise” that will allow him or her to resolve tax debt for less than the full amount owed. If you have not filed previous years’ tax returns or if you have unresolved tax debt, the worst thing you can do is simply ignore the problem.

Contact a San Jose, CA Tax Compliance Lawyer

The IRS has the authority to bring civil enforcement actions and even criminal cases against taxpayers who are not compliant with the law. If you have a compliance issue, you need an attorney who can help you settle the issue before the IRS starts taking punitive actions. San Jose tax law attorney John D. Teter has more than 30 years of experience helping clients resolve a wide range of tax concerns. Call the John D. Teter Law Offices at 408-866-1810 today to schedule a confidential appointment.

Sources

https://www.irs.gov/newsroom/irs-increases-visits-to-high-income-taxpayers-who-havent-filed-tax-returns

https://www.irs.gov/payments/offer-in-compromise