What Happens When the IRS Sends a Letter?
Every year, the Internal Revenue Service (IRS) audits thousands of American taxpayers and businesses. When that happens, it becomes stressful. If the government determines that money is owed, it will attempt to collect by adding penalties, filing tax liens against property and taking a percentage of wages. Most taxpayers are unprepared to meet such demands, even when if they feel that their mistakes are honest ones.
Delinquent taxpayers who try to work with the IRS directly, oftentimes dig a deeper hole for themselves – despite their best intentions not to. Although the IRS agent auditing them may be courteous and even helpful, the auditor’s job is to make sure the government gets paid at the taxpayer’s expense. If the auditor suspects that the taxpayer is trying to hide important information or is not being truthful, the case could be assigned to the IRS’ Criminal Investigation Division. In fact, over half of all criminal investigations are initiated by an IRS agent conducting a “routine audit.”