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Monday, March 2, 2015

Consumer Complaints

Consumer Complaints about the IRS

The IRS is not an institution that most Americans like. Here are some of the common consumer complaints about the IRS. 

- Consumer Complaint #1: Complexity of Tax Return filing
Why is it so difficult to file your income taxes? The tax code is so complex most people need to hire someone to file their return for them. Fear is a big factor here. People are afraid of the penalties if the fill out the forms correctly or they are afraid they won't get the biggest refund possible. 

- Consumer Complaint #2: Some people don't seem to have to pay taxes
There is a growing belief that neither the rich nor the poor are paying taxes leaving the entire burden to the people in the middle. The rich can take advantage of loopholes and write offs while the poor take advantage of programs like the Earned Income Tax Credit. 

- Consumer Complaint #3: Hold Times
If you find yourself in the unfortunate position of actually having to call the IRS, you can expect to wait on hold for at least 30 minutes usually longer. And then there is no guarantee you will get a solution to your problem. 

- Consumer Complaint #4: Tax Liens 
If you owe the government money, they may file a tax lien. This action can cause all kinds of problems. It will make it much more difficult to get a loan modification or sell property. When the IRS files a lien, levies are not far behind. The Federal Government can levy the money in your bank account and use it to pay down your tax debt. 

- Consumer Complaint #5: Penalties
The IRS assesses large penalties for Failing to File a Return on time or for Failing to Pay tax due on time. These penalties can be severe and some view them as a rip off. However there are ways to get penalties abated.

- Consumer Complaint #6: Scams
There are people out there running scams by impersonating the IRS, asking for money while threatening to take you to jail. The IRS will send letters out before contacting you by telephone. They are not going to threaten to take you to jail either. Another scam is when someone files a fraudulent tax returns under someone else's Social Security Number. It is a form of identity theft. They make sure that a refund is due and then they change the address so the check comes to them. 

There are firms like Phoenix Financial Group that can help you navigate the waters of the IRS. They provide customers solutions to most of the above complaints. They can help you get a return filed. Their tax attorneys and enrolled agents can speak to the IRS on your behalf so that you don't have to spend hours on hold. They can inform you of all of your rights and how to deal with tax liens and penalties.  Phoenix Financial Group can help you find solutions to your tax problems.