Unfortunately, you can’t always beat the taxman no matter how hard you try. From time to time, the taxman will come calling asking awkward questions. That isn’t to say that you are guilty by any stretch, but it still isn’t nice. It isn’t nice because your response could determine how they treat you in the future. If they feel you aren’t cooperative, they will push even harder. As a result, it’s vital that you respond in the right manner. If you don’t know how to respond, take a look at the tips below.
Always Be Polite
Regardless of how they are on the other side of the phone, you need to be polite. On the whole, nothing good comes from arguing with anyone, especially a government official. Plus, it may make them more sympathetic to your cause. They deal with so many angry people that your polite approach may put them on the back foot. One thing’s for sure – it can’t hurt your chances.
Don’t Admit The Debt
The call is certainly going to be recorded, which means they can use it as evidence. If you admit to the debt, they win and you lose. In all honesty, it is almost impossible to come back from a confession, especially one they have on tape. After all, why would you confess if you didn’t mean to confess? No matter how hard they push, don’t wilt under the pressure. Answer them in generalities to avoid committing to anything and get off the phone as quickly as possible.
But Don’t Deny it Either
You shouldn’t confirm or deny the allegations – how does that work? It works because it doesn’t commit you to anything. If you do deny it and it proves to be true, they could use it against you at a future date. Or, they could use it to say that you are a liar and have been trying to dodge tax, which is illegal. Obviously, both of these scenarios are not good for you or your business. So, whatever you do, don’t commit to any of their statements even if you think you are right.
Direct Them To Your Legal Counsel
There is no better way to respond to the call than to tell them to contact your tax attorney or enrolled agent. Tax officials hate this because they know that they are going to have to go through a long and arduous process. After all, lawyers are experts in the field and aren’t intimidated. Use this to your advantage so that you don’t get caught out in the act. Plus, it’s a great way to get off the phone!
Don’t Ignore The Situation
After the phone goes down, you need to respond. Now is the time to show emotion because they can’t see or hear you anymore. The best thing to do is to call your attorney yourself to tell them about the call. Then, they can give you the advice on how best to act next. As long as you are proactive, you have a good chance of coming out the other end.