🚫 5 Costly Mistakes To Avoid When Dealing With The IRS

The Liberty Team
4 days ago
3 min read

*Liberty Financial Solutions, LLC: We worry about the IRS so you don't have to...***

5 Costly Mistakes To Avoid...

International Taxation Experts — CPA Dallas-Fort Worth Metro Area

5 Costly Mistakes To Avoid When Dealing With The IRS

When it comes to the IRS, what you don’t do can hurt you just as much as what you do. Whether you’re facing a tax bill, an audit, or just received a notice in the mail, here are 5 common mistakes you should avoid at all costs:

1. Ignoring IRS Notices

Out of sight is not out of mind. If you read our blog, this is nothing new to you; in fact, you'll know that this is one of the most costly mistakes taxpayers can make when it comes to dealing with the IRS. Just remember, the longer you wait to take action, the fewer options you'll have at your disposal.

In other words, ignoring an IRS letter won’t make it go away—in fact, it only makes things worse. Failure to respond can lead to additional penalties, bank levies, or even wage garnishment.

✅ Tip: Always open IRS mail and respond by the deadline. No, it's not pleasant, but treat it like ripping off a band-aid. If you're unsure what the notice means, contact your premier tax resolution company "Liberty Tax Defenders."

2. Lying or Providing False Information

Tempted to fudge the numbers? Don’t. Providing false information on a tax return or during an audit is not only unethical—it can be criminal.

✅ Tip: Be honest and accurate. The IRS has extensive data-matching tools and is more capable than ever of detecting fraud. They're well trained to read your body language to know if your being deceptive (trust me; I was very good at this).

Don't make these costly mistakes when dealing with the IRS. — IRS Representation Near Me

3. Missing Filing Deadlines

Even if you can't pay, failing to file can lead to hefty penalties. The late-filing penalty is generally 5% of the unpaid taxes for each month your return is late. Even if you can't pay, go ahead and file!

✅ Tip: File on time, or request an extension if needed. Filing is better than not filing—regardless of your ability to pay.

4. Going It Alone

Trying to handle an audit, appeal, large tax debt yourself, or anything IRS-related can and usually does backfire. The IRS process is complex, and one wrong move could cost you big. Yes, it's going to cost you money, but it will cost you a lot less than "going it alone," and making costly mistakes that will cost you even more money.

✅ Tip: Hire us at Liberty Tax Defenders! To date (06/2025), we've helped our clients keep $2 million of their hard-earned money that the IRS said they owe!

5. Ignoring Payment Obligations

Owing the IRS is stressful—but ignoring it won't make it better. Interest and penalties will pile up, and the IRS can enforce collection actions.

✅ Tip: Contact the IRS to set up a payment plan, or explore options like an Offer in Compromise if you can’t afford to pay in full. If you have questions, payment plans and OIC's are our specialty!

Final Thoughts

Dealing with the IRS doesn’t have to be a nightmare—but it can be if you make the wrong moves. When in doubt, consult us at Liberty Tax Defenders early in the process and stay proactive. Again, the sooner you take action, the more options you’ll have.

Please reach out to us at Liberty Tax Defenders for your free consultation!

Let us make sure you don't make this mistake that costs taxpayers millions every year.

Call us at 817-995-5008 or shoot us an email at: info@libertytaxdefenders.com.

We're here to help!

Cheers!

The Liberty Team

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