Having tax problems with the IRS is very similar to having a cold. These two things are similar because they are both very common to get and if they are not treated properly, they just get worse. Also, anyone can get a common cold and the same holds true about tax problems, anyone can get them. In regards to getting into trouble with the IRS, everyone is exposed to potentially having IRS trouble due to the simple fact that the tax code is so big in size that the exposure rate is bigger. There are also things that people either do or don’t do that can also increase their risk of getting into trouble with the IRS.
A person doesn’t have to be rich or even be someone who uses tax shelters and offshore accounts to have trouble with the IRS. All sorts of issues can arise from a variety of things and may be as simple as making a mathematical error on a federal return or supporting documents when filling them out. Tax problems can also resonate from doing things that are not proper. For example, if someone reports the wrong income for a specific year or in many cases if someone fails to report all of their earned income for a specific year then that can lead to trouble with the IRS. Also, if someone takes a deduction that they are not entitled to take on their return that can lead to trouble. These are just a few examples of the many things that people can do to get into trouble with the IRS.
Quite often, tax problems with the IRS are triggered by the things that people don’t do that can be the most troublesome. One of the most common things that people do not do that gets them into trouble with the IRS is to not file a federal return. It can sometimes take a while, potentially years, for an IRS issue to surface when people fail to file a federal return. However; the sleeping dog eventually wakes up and will bite them for not filing the federal return.
One of the other most common things that people do not do that causes trouble with the IRS is to not read the letters or notices that the IRS sends to them. When someone ignores reading the letters or notices that the IRS sends to them, then they don’t know what action the IRS is going to take against them. The IRS will go ahead and take the action against the person that is detailed in the IRS letter or notice. There is a very common misconception among people who think that if they don’t open or pick up a certified letter at the post office from the IRS then nothing will happen to them. That perception is wrong. It is unfortunate that people don’t always read the letters or notices that are sent to them because those are tax problems that can be addressed and avoided by simply reading them.