The service is the most aggressive and hostile collection agency in the world, and they work hard to cultivate that image. \u00a0IRS criminal investigations are on the rise and big business these days. If you owe money or have not filed your returns, you should be afraid of the IRS.<\/p>\n
First and foremost, non-filers should be afraid of the IRS.\u00a0 If you have not filed your tax returns for 2, 5, or even 10 years, it\u2019s just a matter of time before the IRS catches up with you.<\/p>\n
No matter how long you\u2019ve managed to stay hidden, there will be a day of reckoning.\u00a0 Someone will issue a 1099, W-2, CTR, capital gain or interest income statement, or some other form that gets to the IRS.\u00a0 Then, someone will be assigned to find you and your assets.<\/p>\n
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To non-filers, I say get your returns filed, come out of the shadows, have that day of reckoning on your terms, not whenever the IRS gets around to it, and don\u2019t be afraid of the IRS any longer.<\/p>\n
Another group that should be very afraid of the IRS is those with unreported offshore bank accounts or offshore corporations.\u00a0 The U.S. is on the warpath against hidden assets and would love to put you in jail for failing to comply.<\/p>\n
If you have unreported offshore accounts, you should consider joining the IRS Offshore Voluntary Disclosure Program.\u00a0 If you are living abroad, you might avoid all penalties.\u00a0 If you are living in the U.S., then you can eliminate the risk of jail.<\/p>\n
For more information, take a read through this post on the IRS Offshore Voluntary Disclosure Program.\u00a0 They are an excellent free online resource.<\/p>\n
Another group that should be afraid of the IRS is those with unreported or under-reported (domestic) income.\u00a0 If you\u2019ve filed your returns but did not fully report your income, you should be afraid of the IRS.\u00a0 Though, to a lesser extent than those with unreported offshore income.<\/p>\n
As a rule of thumb, I suggest that, if you under-reported your income by 20 \u2013 25%, you should be afraid of the IRS.\u00a0 If you under-reported your income by 50% or more, you should be very afraid.\u00a0 At these levels, additional penalties apply and criminal charges could become possible.<\/p>\n
At lower levels, you might not want to amend your return to correct an innocent mistake.\u00a0 The smaller the error, the less I\u2019d want to draw attention to the return.<\/p>\n
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A HOME AWAY FROM HOME: THE 6 BEST COUNTRIES FOR ASPIRING EXPATS<\/a><\/em><\/p>\n Remember that the IRS usually has 3 years to audit your return.\u00a0 If you catch a minor issue on a 2-year-old return, you might let it ride.<\/p>\n The last group that should be afraid of the IRS is anyone with a tax debt older than 30 days.\u00a0 If you filed a return with a balance due or received a notice from the IRS saying you owe money, you should take action to defend yourself within 30 days.\u00a0 The longer you wait, the more afraid of the IRS you should become.<\/p>\n This is especially important if you received a letter by certified mail.\u00a0 Once that notice, called a CP504, is sent to your last known address, then you have 90 days to resolve your tax debt.\u00a0 If you don\u2019t get it handled on time, the IRS has the right to levy your bank accounts, garnish your wages, and seize your property.<\/p>\n I hope you\u2019ve found this article helpful.\u00a0 Remember that the best way to stop being afraid of the IRS is to file your delinquent returns and get an expert in your corner to deal with the IRS on your behalf.<\/p>\n <\/p>\n Let’s face it, taxes for expats and the offshore markets is specialized information that your mom and pop accountant down the street is not going to understand. Speak with our CPA if you are serious about reducing your tax obligations and always staying compliant – click here to find out more.<\/a><\/p>\n Guide to Foreign Tax Credit, Foreign Tax Treaties and Foreign Housing Exclusion<\/strong><\/a><\/p>\nWhat’s Next?<\/strong><\/h2>\n