To Question the IRS


         Did you know that taxpayers and businesses can approach the IRS in advance of making a tax decision, to see what the outcome would be? While that sounds simple, it really isn’t, and is probably not something that the majority of people would want to get involved in. Here are some things to consider about approaching the IRS their blessing on a tax plan.
          One can submit a written request for an IRS Ruling. These will be binding when given, can take up to 6 months to handed down, and can have a fee of over $20,000 attached to it. This option should only be used if there is a strong likelihood of receiving a “Yes”. Even if the request is withdrawn later because of a negative outcome (or no decision is given), the next Tax Return will be flagged for an audit, since they know what is being planned.
          Another option is an IRS Tax Opinion. This is an informal, discussion about the tax matter. It is not official and takes only a few weeks to complete. This involves getting the general idea of the IRS viewpoint by talking to some of their attorney’s. No matter what the outcome is, it’s not official. A qualified Tax Professional can help in these areas, especially if the stakes are high.

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