Dealing with tax issues is quite a difficult task and hence proper care and attention needs to be paid to understand the whole issue. There are many businesses and individuals out there who underreport their income and thus try to evade paying taxes. In such case, if the IRS finds out that the fact that someone is underreporting their income then they proceed to take the necessary steps and actions in that direction. First and foremost is that they would send you a notice to begin the collection process.
What to do if you disagree?
If you agree that there are some discrepancies to paying taxes then you can very well submit a response to the notice agreeing to pay and settle the amount as provided. The IRS is also strict with the accuracy of payment made. If one does not report all the income the IRS would assess an accuracy related penalty on that specific case. The penalties put forth on those who don’t report their income includes,
- Negligence or Disregard of the Rules or Regulations
- Substantial Understatement of Income Tax
On the other hand, if you disagree with the IRS and its assessment of underreported income then you can contact a qualified tax professional immediately. It is important to take your own time to create proper response to the IRS disagreeing to the discrepancy of the payment made. If you are not sure as to how to go about the whole thing then you can very well seek professional support and guidance in this regard. Tax Relief Professional is a reliable and most trusted tax relief service provider that brings with it several years of experience and expertise with it. This source provides for various articles explaining important aspects about taxation. You can check here about the author.
