How You Can Cope With Tax Problems For The Lowest Audit Fee

Audit fee schedules vary depending on the type of audit, and whether or not it proceeds to a court situation. In the first instance, the IRS will contact you seeking information. This initial contact will inform you of the type of audit you will be facing. If it is a simple audit by mail, there will be no fee involved, and these cases are rarely a serious problem. Let's face it, if the IRS seriously suspected you of wrongdoing they would not be dealing with you through the mail. Usually, a computer will have flagged up something as an anomaly. If you can provide proof that the figures you have submitted are correct, the audit is usually quickly resolved.

There is one circumstance in which you can try to settle with the IRS for less money than you actually owe them in taxes. This is if you are able to qualify for offer in compromise. Under this program, it is possible for some taxpayers to settle for less than the total debt due to unusual circumstances. You will need to be able to demonstrate that there is a doubt as to whether the alleged tax debt is genuine, or whether the debt is likely to be collectible. In practice, this usually means elderly or disabled people who have a very low income, although the program is officially open to anyone. There is a fee to pay for this service if you believe you will qualify.

The fee is $150, plus a 20% immediate settlement. In some very rare cases of extreme hardship, even this fee can be waived. Assuming that you cannot qualify for this exceptional relief, you will need to go through the audit procedure. If it is to be a full face to face audit, it will be better to employ a specialist tax adviser to handle the case for you. They will be far more experienced at handling the questions which are routinely asked.

If the case is going to progress to court, you will usually have the option of proceeding to the Small Case court. The limits for applying to this court have been raised dramatically to $50,000. This means that a lot more people can have their case heard at this court. There are many benefits to this, among them being that a lot of the formalities are dispensed with, and you can even represent yourself if you choose.

The disadvantage is that the verdict of this court is binding, meaning that if you lose you have no option to refer the verdict up to another level. The low audit fee of $60 for filing is payable whatever the result, but it is not likely to be an impediment to many facing the possibility of court for tax discrepancies. Given the potential benefits, it is worth paying this low audit fee.

 



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