Beat the IRS in Tax Court

The IRS makes mistakes all the time. Sometimes it is impossible to find a bureaucrat at the IRS to fix the problem. When this happens, you go to court; Tax Court.

Beating the IRS in Tax Court is not a daunting task. You can file a small claims case if you owe less than $50,000. Small claims in Tax Court is similar to small claims in civil court. You can present your case to the judge in an informal environment; no fancy legal talk and maneuvers.

Another benefit of Tax Court is that once you file, the IRS attorneys work hard to get you to settle out of court. They can cut you some very nice deals, even more than you deserve, to keep the Tax Court docket open.

Learn more about winning in Tax Court here: The IRS Audit Manual: Beating the IRS in Tax Court



.

Preparing for an IRS Audit

Old accountants say, "You win an IRS audit before you ever meet the auditor." And it is true. Your preparation work for the audit determines the tone of the audit and the outcome in most cases.

Gathering your information in advance and adding receipts together shows you where you stand. Weaknesses in your records are now clear to you, but not to the auditor. You can guide to a limited extent where the auditor looks.

Addressing lost documents up front can work to your advantage. If the auditor discovers something while working through your papers, you can have serious problems.

Never throw a stack of paper at the IRS auditor. Have everything gathered together in paper clipped piles. This way you only provide the information you want or the IRS requested. Why give the IRS extra information to use against you.

Read more about preparing for an audit here: The IRS Tax Audit Process: Preparing for the Audit




.