A common problem for many businesses, even businesses that run themselves fairly, is IRS arguments. It’s easy to get into an argument with a government organization more or less set up to take your money. When they ask for more than you believe is owed, is naturally creates a bit of a clash.
However, this can be avoided routinely by simply getting involved with basic plans to avoid the IRS’ glare. From hiring a good CPA to organizing your personal and professional life, many solutions exist to avoiding a run-in with the IRS.
Not sure where to start? Then consider the following;
Always File on Time
Want the IRS to take any potential disputes or claims you may have seriously? Then make them see you as a serious player. With the help of a good accountant you should be having all of your tax documents and details put in as quickly as you can. Never take any risks when it comes to your taxes – filing your tax returns on time is so important.
If you cannot pay what you owe, then file them at least. The IRS are far more likely to listen to your various reasons for failure to pay if you actually play by the rules instead.
Personal Life, Professional Life
Many business owners find that they make it hard to keep personal and professional matters separate. You’ll be far better off if you can separate your taxes for business and personal use. Trying to put your personal matters into your business accounts is just asking for something to take a dim view of what you are doing.
Many people stupidly try to drop in their divorce costs, for example, into the business accounts. They may even try and deduct vacations and major hobby activities as business expenses. When you try and do this you can fully expect someone will be around to your property with a few questions.
A good accountant will advise you to avoid using such mediocre attempts to game the system. The IRS aren’t fools; they know what kind of games are being played.
Pay Smaller Bills
Should you ever receive any form of IRS notice, pick your words very carefully. Consult with your CPA and they will give you a good idea of how heavy you should go in with a response. If a tax bill is small, then pay it off – don’t try and contest small bills. You’ll risk aggravating the situation, spending lots of time in legal debates, and could find yourself in hot water if what you are saying won’t check out.
So long as you can afford a bill, don’t contest it in the main. IRS problems can be hard enough to solve without trying to take them on for every bill. Also, it avoids you from becoming someone they see as an irritant or a threat later on down the line.
Remember, management of your IRS dealing is best managed with the help of a trusted accountant.
