Tax Controversy Common Misconceptions

If I haven’t filed in years and the IRS did nothing, I’m flying under the radar!

The worst thing you can do is assume the IRS is clueless about your non filing status and your income. There is a complete history sent from employers, mortgage companies, and other financial institutions. The IRS knows way more than you may be giving them credit for. Just because you are not in jail at the moment doesn’t mean you slipped through the cracks.

One of the best things you can do, even if you can’t afford to pay, is to file all your tax returns. Do not wait for the IRS to start threatening you. They will eventually take action and the longer you wait without filing, the harder you are making things on yourself.

I don’t have that much money, what can the IRS do to me?

The IRS is the most cut-throat collection agency in the U.S. Don’t be fooled into thinking they will go easy on you because you have lower income. The IRS will do its best to collect from every taxpayer what is due. Please never forget that your biggest asset is your freedom. Not filing your tax return is a criminal offense and it IS punishable by jail time. We have a few clients that are just ordinary citizens, who have been to jail for tax evasion. The IRS will use every trick in the book to get you to pay up. Do yourself a favor and get experienced tax representation. In my opinion is a must!

The IRS is threatening to levy me, I will worry when it is a lien.

This thinking is 100% wrong. A levy is way more serious than a lien. A lien just means the IRS stands in line first to get paid for your tax debt. If you sell your home and the IRS has a lien they get paid before you and any other creditors. But a levy actually means the IRS can just take your property right out from under you.

The IRS can send me letters my credit score won’t be hit.

This is not true in fact your credit score can take a huge dive if the IRS files a tax lien against you. A tax lien can prevent you from buying a house, obtaining new credit, and it can hinder your financial well-being way beyond what you might expect.

The IRS doesn’t have the right to take money from me, without court approval.

The highest collection agency in the US has the ability and the right to take your individual as well as business assets. Not only can the IRS collect to satisfy a tax liability, but it doesn’t even need a court order to do so. They can levy bank accounts, wages, investments, retirement,  property, and all without “traditional” due process.