Yes, the IRS is tough and our feeling is you’re better having professional representation than dealing with the IRS yourself. But as tough as the IRS can be you still have certain rights and expectations of privacy. Even during an IRS audit you have certain rights to privacy.

The IRS can’t launch an unlimited investigation of you and your lifestyle and your assets when you have acknowledged your debt and are offering to pay down your debt either with a payment plan or an Offer In Compromise. This means that if you offer to settle your tax debt you do not need to submit any financial documentation. In other words, you don’t have to open all your books for a potential IRS witch hunt.

There are also privacy guidelines if you are called for an audit. An audit doesn’t mean the IRS can launch a witch hunt either. 

If you are called in for an audit, if the IRS finds no reasonable indication that a taxpayer has no unreported income, the IRS “will not seek intrusive and extraneous information about the taxpayer’s lifestyle,” says the IRS. Simply that means if the IRS doesn’t have evidence that you didn’t report income they can’t turn over every rock in town looking for unreported income. The IRS needs evidence to launch an investigation — it’s that simple.

With that said, remember that when you get an income statement such as a 1099 or a W2 or a W2G (gambling win) the IRS also gets a copy. Don’t ignore that paperwork or lose it because it will go into the IRS computers. When you send in your tax return, what’s on your return and what’s in the IRS computers is compared.

But while the IRS has its computers you have rights and the IRS must follow its laws and regulations to maintain your right to privacy.

But again, having a professional represent you can be a better and more comfortable option for you. And having someone represent you is another of your rights.

Call us. Let us discuss with you what your options are for dealing with your tax problems. Even when your privacy is respected just facing the IRS paperwork can be overwhelming. 

We know how to use the IRS Fresh Start Initiative and the Offer In Compromise program to get relief from tax debt. Our consultation is free and it is fast. In 15 minutes or less we can tell you what your options are for resolving your tax debt.