If you find yourself in the unenviable position of being audited by the IRS, it’s important to know just what’s at stake if the government determines – either correctly or incorrectly – that you have evaded paying your taxes. To see the immensity of the IRS’ reach in seizing your assets, read what some of our contributors had to say on the subject.
Luke Smith, Founder of We Buy Property In Kentucky.
An Audit Is the First Step
The IRS is in the business of collecting taxes in order to create revenue for the government. When an individual is found to have created wealth illegally through ill-gotten gains or for avoiding taxes the IRS gets involved. The IRS has to conduct an audit to determine if the taxes were legally avoided or if they were just not paid. In many cases, high profile individuals are found to have skipped paying taxes and they end up owing their original taxes plus interest. The IRS will have to conduct their own investigation before they are allowed to seize assets. However, it’s important to note that most do not win against an audit. Once the government goes after someone, they usually win or get something. At the very least, an audit will take time and money for both parties involved.
This is a crowdsourced article. Contributors are not necessarily affiliated with this website and their statements do not necessarily reflect the opinion of this website, other people, businesses, or other contributors.