YOU CAN RUN BUT YOU CAN’T HIDE FROM THE TAX MAN

According to Forbes, even the almighty Manny Pacquiao is having major tax issues. In the article “Manny Pacquiao Lands a $75 Million Blow in a Tax Evasion Case” it appears that the Pac Man is having trouble fighting the Tax Man man, which is like a mismatch with an opponent from a higher weight class.

Like Pacquiao, you may run into trouble with the tax man, but the steps you take to resolve your tax matters will make all the difference in the world.

While the superstar boxer was able to reach a temporary agreement with IRS on his back taxes, but it was not an easy task. The taxes he is dealing with are dating back to 2005. Long time relationships have some great benefits in life, but this is not the type of long term relationship you want to have.

If you have tax problems to resolve, we want that relationship with IRS to be as short as possible. Make sure you do the following:

• Respond Quickly: If IRS requests information from you, give it to them in a timely fashion. Establish a realistic deadline for giving them the information and then give them everything they asked for all at once. Responding quickly helps to build credibility with the IRS so they now can trust you will get them exactly what they need.

• Make Your IRS Payments Timely: If you tell IRS you are going to make payments on the balance due and they set you up on a payment plan, make that payment on time. On time to the IRS really does mean on time. If you tell IRS you are going to pay them on the 20^th don’t send the payment on the 20^th.  Send the payment far enough in advance so payment is received by the 20^th.  If you skip a payment, IRS will send you a letter stating you have defaulted on your installment agreement. I know you make think it is ridiculous but IRS still doesn’t take payments by email. You have to either mail them a check or have them take the payment from your bank account.

• Make Your Payments Monthly When Required: A monthly payment plan is truly a MONTHLY payment. Plan. If your agreement with the IRS is to pay them $100 per month, then you have to pay them $100 per month. If you pay them $200 one month, IRS will not allow you to skip the next month’s payment. You still have to make a monthly payment the next month. The IRS system does not care how much you over pay your installment agreement; they care that you stick to the agreement and pay monthly.

• Follow Up Is Key: You have to follow up with IRS as they are busy. The difference between you and IRS is they expect you to accept their delays, but they don’t expect them to accept yours. I know, it’s not fair, but delays are not an option for you.

Pacquiao may be working for a while to resolve his tax matters. More than likely your tax issues are on a lesser scale. Doing exactly what you say you are going to do and providing all the necessary information will ensure your tax matters are resolved quickly.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.