1. Never miss a deadline with the IRS. Missing a deadline will only give the IRS further reason to cause problems.
2. Never lie or attempt to intentionally deceive the IRS. The consequences of tax fraud are tremendous including prison time.
3. Always report all income that the IRS knows about or can find out about. Unreported income is the primary reason why taxpayers have any contact with the IRS in the first place.
4. Always file tax returns on time and be able to prove that they were filed on time. It is up to you to prove that a tax return was filed on time to avoid any late filing penalties. It is a good idea to get a return receipt if you mail anything to them. Also, it is better to file on time even if you cannot pay the tax bill on the return.
5. Never ignore an IRS notice or letter. A tax problem will not go away just because you throw out the notice. The problem may remain dormant for a time, but when it reappears it will be much worse than before.
6. Never volunteer information to the IRS. The IRS will usually use any information against you. The only time to volunteer information is if you are certain that it can benefit you, which is a very rare case. The only information the IRS knows about you is either from the information reported to them from employers, banks, vendors or on your tax return.
7. Always ask the IRS questions. You have right to know what they are up to and it is always best to know as much as you can.
8. Never assume that the IRS understands the tax laws. The IRS only enforces the tax code, they do not write it. Members of Congress who wrote the tax code and tax professionals who make a living at interpreting it do not completely understand the complex mess of tax laws today.
9. Never allow an agent into your home. Unless they have a warrant from the courts, they have no right to enter your private residence. If the IRS wants to audit your records, always arrange to meet at their office. The reason they like to come to your home is to dig up more information on you to use against you. (See rule 6 above) However, if you have a public place of business, they have a right to audit your records at your office.
Richard L Hart EA, CAA
President
Hart and Associates
http://www.hartassociate.com
Article Source: http://EzineArticles.com/?expert=Richard_L_Hart
