When it comes to the IRS, I am sure we know of someone who has been audited or has received a tax judgment. We read stories everyday in the mainstream and alternative media about the capricious IRS and how they ruin people’s lives. But, if we take a step back we see that the number of individuals in many of the stories numbers in the hundreds; and this is over a span of years.
The news media plants stories of heavy-handedness by the IRS to scare the public into compliance
Here is an article titled, IRS shuts down mom and pop dressmaker, sells dresses within hours. It was covered nationwide on all the major outlets.
The article says that the business owners dispute that they owed the IRS any taxes. The government says they owe for the 2005, 2008 and 2010 tax years.
“The taxpayer’s tax returns on file with the IRS reflect that the tax year at issue generated a net operating loss carryover, not a taxable amount,” the suit says.
The IRS declined to comment, saying its policy doesn’t allow statements about specific cases. The Justice Department’s tax division defended the agents’ actions in court filings, however, and has asked a federal judge to dismiss some claims in the lawsuit.
What gets me is that this auction is the result of problems going as far back as business owner’s 2005 returns. I am sure there was animosity on both side of the negotiation. The fact the IRS held off as long as it did is remarkable. Perhaps the business owners should have used another tax accountant.
When it comes to seizing property the IRS likes to work fast, so they are most likely going to seize bank accounts. Here is an article titled, The IRS took millions from innocent people because of how they managed their bank accounts, inspector general finds. The IRS always tries to seize the most liquid assets first and very often will not bother with other stuff like real estate. Keep in mind this article discusses that there have been hundreds of cases over the years, so the number is small. These articles by outfits like the Washington Post are designed to scare the crap out its readers. It works well, as we self-enforce our honesty and stay obedient.
Deal honestly and directly with the IRS when contacted
I have a very close relative who has been employed by the IRS for about 25 years, and had worked in their “offers and compromises” department for much of that time. She was responsible for dealing with defendants after the case had been decided and it was transferred to the payment phase.
Over the years she has made some general observations about the people who have had problems with the tax authorities. She would marvel at the foolishness and willful ignorance of some of the people in the cases. What surprised me was she had latitude in negotiating settlement terms and amounts. She was more likely to treat someone who was honest with her in a more favorable light. Moreover, if someone was negotiating in good faith, very often the final amounts paid were commensurate with the tax payer’s financial state.
Primarily, the ones who had liens and judgments were from those who didn’t declare income that was reported to the IRS. I knew of people who didn’t report real estate transactions correctly, for instance. They are just asking for problems. In real estate, the tax regulations are so favorable for investors in the first place that I cannot fathom why someone would even want to mislead.
In another instance, I dated a woman who worked for a bond trading firm in Manhattan and she would receive some sizable bonuses. They were often over 100k, and this was 15 years ago. It was all reported on 1099s, but she never declared the entire amounts. Thus, she had an IRS tax lien for about 40k. She didn’t want to deal with them either. When I asked her how it happened, she remarked she worked hard for her money and the Feds were greedy. Talk about psychological bias.
Hiring lawyers to negotiate often backfires
My close relative also says that most people who have problems with the IRS should not get lawyers or agents acting on their behalf. The best mode of action is to deal directly with the IRS agent assigned to their case. Some IRS case workers wonder why someone would need to get a lawyer; it’s an admission of something.
She said the best action is to file accurately, don’t leave out any reported income, and don’t set off any obvious red flags., and when contacted by the IRS be honest with them.
It doesn’t matter if the IRS is unconstitutional
You and I both know that the globalists set up the IRS as its revenue collection agency. There is nothing constitutional about the IRS, but ever since the Federal Reserve Act was enacted, not much of anything coming out of the US federal government is constitutional.
The way to deal with the Feds and their agencies is to be as Christian as possible. I strive to be honest and fair in all my dealings; whether it be with a contractor, a tenant, a cashier in the store, or with the IRS. I even record all my gold sales, because I want to account for my cash in my checking accounts. Truth keeps my life simple.