Posted by mike on .
What experiences (good or bad) do you (or someone you know) have with IRS (or any other taxing authority)? What actions do you (or would you) take to reduce your taxes?
This asks for YOUR experiences -- not some anonymous stranger's experiences.
With the IRS the burden of proof is on the person being taxed or audited. They will send many form letters, often before they even receive your documentation. And, in the meantime the penalty/fine keeps mounting. Sometimes the penalty/fine is even more than the original tax requested!
For two consecutive years, I have had to appeal the valuation of my property in the state of Washington, which is used for determining property taxes. I won the appeal on both occasions. The county assessor's office is using broad rules of thumb that do not treat properties equally, and makes few inspections.
As far as state and federal income taxes go, investing in California municipal bonds has saved us a lot.