It’s tax time, and for most people it’s a frenzy of paperwork and filings. But for anyone who’s fallen behind on their taxes, or is starting to get notices from the IRS or the North Carolina Department of Revenue, tax time can feel extra stressful. 

If you’re buried in years of unfiled returns or caught off guard by an unexpected IRS notice, it’s always better to deal with your issues sooner rather than later…and to know what you’re up against. Here are seven secrets to navigating the IRS if you’ve fallen behind.

1. File Your Tax Returns on Time (or get an extension).

Did you know the IRS charges a penalty of 25% just for filing your return late? That’s right, whether individual, business, or payroll tax returns, the IRS will hit you with a steep penalty if you’re even a day late. 
 
So get that return filed on time, or else apply for an automatic extension (this buys you 6 more months, but remember that an extension to file is not an extension to pay what you owe). 

2. Question the Penalties.

The IRS has hundreds of penalties, and to add insult to injury, they can also charge interest and additional penalties on top of the original penalty!
 
Since penalties can be such a high percentage of the total amount owed, it usually makes sense to consider requesting that the IRS reduce the penalties to zero before you pay. But if you’ve already paid it can’t hurt to ask for a penalty abatement and a refund. 
 
IRS penalties can often be reduced to zero if you have “reasonable cause,” which could be anything from medical reasons, bad accountants, ignorance of the tax laws, a delinquent ex-spouse, fires, floods, drug abuse, death, and even relying on IRS advice. 

3. You Don’t Have to Live in Fear of the IRS

Dealing with the IRS can cause a lot of stress and anxiety, even if you have done nothing wrong. Don’t feel powerless when the notices start piling up–know your rights and have an experienced tax resolution professional on your side to navigate your tax troubles. 
Our mission is to help taxpayers solve their tax problems for good. We negotiate the lowest possible payments allowed by law, save taxpayers from financial crisis, and help them turn their lives around and start fresh. If you are ready for a fresh start, you don’t just owe the IRS. You owe it to yourself to get relief today.

The taxpayer Bill of Rights allows you to be represented by a qualified practitioner who can answer questions for you and provide documentation to the IRS. It’s important to seek out an experienced tax resolution specialist that negotiates for clients on a daily basis, rather than one who only does it occasionally for clients who receive other services. Don’t let the IRS intimidate you or an inexperienced advocate. 

When it comes to tax audits, taxpayers are determined guilty until proven innocent, and as a result the IRS wins about 80% of the time. For example, they could begin an audit by disallowing every deduction you made on a return, leaving you the burden of proving every expense to be legitimate. 
Having qualified representation vastly improves your chances for successful tax resolution. Going it alone is like representing yourself in a murder trial–why risk it?

The best way to end an IRS audit with a great outcome is to end it in the first meeting. This doesn’t always work, but having an experienced professional on your side who knows what the IRS will require–and as importantly, what might be missing from your files–makes getting to the bottom line a much faster process.