IRS warns that trying to reduce your tax bill puts you at the risk of paying much more

The crooks take advantage of an IRS program and you could pay the price.


We all hope for a refund after depositing our income declarations Each year, but many taxpayers end up discovering that they have money at the Internal Revenue Service (IRS) instead. With less than a month to be deposited, you may be frantically looking for a way to reduce your tax bill. But don't let the crooks enjoy your despair. The IRS has just issued a new warning to taxpayers looking for an easy way to reduce the amount they owe in taxes. Read more to find out why the agency says you could put yourself in danger of paying even more.

Read this then: The IRS warns that the complaint of these credits can provide you with audit and a fine .

Refunds are smaller this year, and more people than usual may have money.

1040 individual income tax return form and money. Tax payment, filing taxes and financial planning concept1040 individual income tax return form and money. Tax payment, filing taxes and financial planning concept
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If you are used to receiving a heavy refund from the IRS, you may be disappointed this year. The agency warned that "reimbursements Can be smaller in 2023. "On March 18, the average amount of reimbursement was completed 11% lower than what it was in 2022. AE0FCC31AE342FD3A1346EBB1F342FCB

"Several factors contribute to it. For example, taxpayers will not receive additional recovery payment with their tax reimbursement because there was no economic impact payment for 2022," said the IRS. "In addition, taxpayers who do not detail and do not take the standard deduction will not be able to deduct their charitable contributions as they could in their yields in 2021."

And some taxpayers may not receive a refund in 2023. "People should wait absolutely OPPORT RESTS Lynnette Khalfani-Cox said NPR. "And frankly, some people could even have the government's money."

IRS has a program that can help taxpayers reduce their bill.

A young woman sits at a desk late at night and tries to work on her taxes. She looks discouraged as she reads a W-9 and other paperwork. Her laptop is open in the background.
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If you did not expect to have money this year, you could find yourself unrelated to make this payment. But IRS has options for taxpayers who have a tax bill They cannot pay. For some people, the Compromise The program is a good option.

"A compromise offer allows you to pay your tax debt for less than the total amount you need," said the agency. "It may be a legitimate option if you cannot pay your full tax responsibility or this creates financial difficulties."

When you decide whether or not to provide a compromise request offer, the IRS considers several individual factors such as your ability to pay, income, expenses and equity. But not all taxpayers are eligible for applying, and the agency does not guarantee that it will approve the request for anyone.

"Explore all other payment options before submitting a compromise offer," advises the IRS. "The offer in the compromise program is not for everyone."

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The crooks work to take advantage of taxpayers exploring this option.

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In a press release on March 30, the IRS published A new warning Taxpayers seeking to reduce their tax bill through the offer in compromise. According to the agency, the crooks work to take advantage of taxpayers exploring this option by pushing the offer in "Mills" compromises.

The IRS includes this scheme in its Dirty Dozen , which is an annual list which covers the "current scams", taxpayers are likely to meet during the deposit season.

"A offer of compromise" Mill '"will generally make weird allegations, often in radio and television advertisements, on how they can settle the tax debt of a cheap person," said the agency in its new alert. "In reality, the promoter costs are often excessive, and taxpayers pay the offer in Compromis Mill to obtain the same agreement that they could have received by themselves by working directly with the IRS. It takes the Unnecessary money from the taxpayer's portfolio. "

They also target taxpayers who are not eligible for a compromise offer.

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You can end up due to the same amount in taxes, even if you pay the crooked costs. According to the IRS, the offer in Compromis Mills will aggressively promoted the program misleading to people who are not even eligible to apply it. This ends up "frequently cost the taxpayers of the thousands of dollars", warned the agency.

"Too often, we see unscrupulous promoters the taxpayers thinking that they can magically get rid of a tax debt," said the IRS commissioner Danny Werfel said in a press release. "This is a legitimate IRS program, but there are specific requirements for people who can be qualified. Desperated people for help may make an expensive error if they are clearly not eligible for the program. Before using an aggressive promoter, we encourage people to easily examine IRS resources available to help resolve a tax debt by themselves without dealing with high costs. "

You can consult your own eligibility for the agency's offer in the compromise program at no cost via its line Pre-qualification tool . But as the IRS reiterated in its recent alert, "not all taxpayers will be eligible for a compromise offer".

Best Life offers the most recent financial information of the best experts and the latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.


Categories: Smarter Living
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