Manhattan tax attorney, Benjamin Goldburd, partner at Goldburd McCone in Manhattan, NY, talks about the most common mistakes he sees people make when the tax authorities come knocking. For more information please visit https://www.goldburdmccone.com
— In a recent interview, leading tax attorney, Benjamin Goldburd, partner at Goldburd McCone in Manhattan, NY, revealed the 5 most common mistakes taxpayers make when dealing with the IRS.
For more information please visit https://www.goldburdmccone.com
When asked to comment, Goldburd said, “The majority of American citizens are ill-informed to take on the IRS when tax authorities come knocking, which could lead to costly errors. If you find yourself in trouble with the IRS, make sure to steer clear of making the following five errors.”
Putting the IRS on the backburner is one of the worst mistakes a taxpayer can make.
When asked to elaborate, Goldburd said, “It’s crucial that once you begin receiving letters from the IRS that you deal with them right away. The longer you ignore the IRS, the less chance you have in building a case against calculations made by the IRS on your taxes. If you respond to IRS notices or requests immediately, then your tax lawyer will have a fighting chance.”
Furthermore, Goldburd added that the interest and penalties will continue accumulating until IRS issues are handled.
Many fall into the trap of thinking that IRS agents operate on the principle of fairness.
"It's a common tactic for IRS agents to develop a certain rapport with taxpayers. But remember that's exactly what it is: a tactic, which is used to extract as much information as possible. Their main goal is to collect taxes owed and to resolve the case promptly," he said.
"Keep it in mind that IRS agents answer to the government, not to you. So if you've been flagged for something by the IRS, they will assume that you are to blame."
Following from this, Goldburd said, many people overestimate how much IRS agents know about tax law.
When asked to elaborate, he said, “Just because IRS agents work for the tax authorities doesn't make them experts on tax law. IRS agents follow instructions in the Internal Revenue Manual but don't have detailed knowledge of the complex tax code."
On the other hand, professionally trained tax attorneys have understood and know how to interpret the tax code to build a case for nearly anyone dealing with the IRS.
Another common misstep, according to Goldburd, is taking on the IRS alone.
“Many mistakenly assume that they can easily handle the IRS on their own. But unfortunately, this often leads taxpayers to pay more than they actually owe. In reality, spending the money upfront on hiring a tax attorney will help you save in the long run."
Asking a CPA to handle a case with the IRS is not ideal, Goldburd says.
“When broken down, there are two types of tax law: one that creates a tax you must pay and the type that sets the rules surrounding how the IRS operates. When it comes to tax professionals, CPAs are typically knowledgeable about calculating how much tax you owe.”
“However, when in hot water with the IRS, you’ll want a professional who can both navigate the IRS and understand the ins and outs of your taxes,” he explained.
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