The IRS, or Internal Revenue Service, is a tax collection and enforcement body that is part of the US Department of the Treasury. The primary duty of the agency is to ensure that people pay their taxes punctually and honestly. This is not an easy task because the agency has to deal with the usual tax evaders. Though there are harsh fines in store for the tax evaders, there are cases when honest taxpayers are forced to pay penalties for no fault of theirs. Consider a scenario where the IRS unintentionally makes an error in listing the liabilities of a person in their records. The person, in these circumstances, will be penalized for the mistake if he is not alert enough. Then there may be situations where people misinterpret the tax laws and pay more taxes than required. Getting a refund is not an easy process, though in due course the person will get the money. In contrast to the above, there may be people who pay less than the amount that is actually due. They have to face the wrath of the IRS agency. The punishment is stringent and involves harsh fines and penalties. To avoid situations such as these, you need to be aware of the prevailing tax laws. If you have problems interpreting them, you can seek the services of a tax law firm. Based on your income and assets, the consultants would be able to give you an exact figure of the tax you are supposed to pay. You should keep a record of your payment receipts. If you are not sure how much you have to pay, you can take your records to the RO (revenue officer) who can then help you out. Again, circumstances may be such that you are unable to pay your taxes because you are short of funds. You can contact a tax law firm and seek professional advice. In such situations, you will be able to pay your tax dues as structured installments based on your agreement with the IRS. |
