When the tax man calls, all American citizens must answer. Unfortunately, meeting your tax obligations is no simple matter, and even more complicated if you own a business.
Most entrepreneurs dread tax time, less because of their possible financial obligations as the complicated tax return filing process. Mistakes can and do happen, even on the part of trained Internal Revenue Service (IRS) agents.
Fortunately, the Taxpayer Bill of Rights can guide you in resolving IRS mistakes and other tax issues that could impact you or your company.
The right to pay only what you owe
Paying more than the tax burden you owe is unacceptable, even if you only do it to get the IRS off your back. When you are confident that the IRS is wrong, paying it anyway may harm the financial side of your business operations.
The right to challenge the IRS
Those who believe the IRS has made an incorrect determination regarding their business taxes have a voice. The IRS supports taxpayers by hearing objections and reviewing additional documentation to ensure its agents make correct determinations.
The right to appeal a decision
You may appeal IRS decisions, including those that could impose penalties on your business finances. Appeals are heard in a fair and independent venue to ensure an unbiased path to resolution. You may take your dispute to court if you cannot resolve it through an appeal.
Protecting your business from improper and potentially devastating tax collection practices begins with exercising your taxpayer rights. Many find it helpful to work with someone who understands complex California tax laws and knows how to navigate IRS procedures.