Have a Tax Issue With the IRS? You Could Always Take Them to Court

What would you do if the IRS makes a decision you don’t agree with? For example, let’s say you file a tax return and send it in expecting to receive a refund of $1,500. However, a few weeks later, instead of receiving your refund, you get a letter in the mail informing you that you made a mistake and you will only be receiving $1,100. You’d be upset for sure, but most people probably figure there’s nothing they can do about it.

Actually, that’s not the case. Did you know that if you disagree with the IRS on your return you could ask them to change their decision? That sounds like a futile move, right? Why would they change their mind? There is another option, though. If you really feel that you have been treated unjustly you can take the IRS to the United States tax Court. That doesn’t sound very fun, either, but it is an option.

The good news is that the U.S. Tax Court is not affiliated with the IRS. That means the IRS is in the same boat as you if your case goes to trial. There are several reasons that people decide to challenge the IRS in court, which include:

  • The IRS assess a deficiency
  • An abatement request
  • Request relief from a joint return
  • Disagreements on worker classification
  • Summons enforcement
  • Gross income
  • Accuracy-related penalty

While most people would rather not spend any more time dealing with the IRS than they have to, if you do feel you have been treated unfairly by the tax agency, then you don’t have to just sit back and take it.

Posted in
New Venture Partners: Top Thirteen Things You Should Know

New Venture Partners: Top Thirteen Things You Should Know

New Venture Partners: Top Thirteen Things You Should Know Updated: 6/16/10 Business Issue Establish due date for estimated capital calls Review personal liability insurance Review medical insurance issues Prepare personal cash flow forecast & balance sheet Carried interest: 4 – 6 years away (Don’t spend until in your pocket) Partnership buy-ins ARE negotiable *** Taxation…

Venture Capitalists Prefer Large Established Markets

Venture Capitalists Prefer Large Established Markets

Venture Capitalists Prefer Large Established Markets By Robert Ochtel 1/22/2009 Many entrepreneurs only focus on bleeding-edge, burgeoning markets when developing their technology, product or service offering. This is done for various reasons including: The perception that burgeoning markets have limited competition, The ability to establish an early foot-hold to increase the value of their company,…

Advice for Startups Seeking Venture Capital

Advice for Startups Seeking Venture Capital

Advice for Startups Seeking Venture Capital The financial crisis makes it harder to get funding, but those that prove themselves during this period will be better positioned to thrive. By John Tozzi From BusinessWeek.com Landing venture capital is tough for startups, even in a good economy. But given the ongoing financial crisis, how hard is…

Due Diligence for Startups Raising Venture Capital

Due Diligence for Startups Raising Venture Capital

Due Diligence for Startups Raising Venture Capital By C. Worrall You have presented your plan to the venture capital partners. It was well received and they have to offer you a term-sheet. You have negotiated your major deal points and are ready for the investment. Now the VC wants to commence with due diligence. Wait…