IRS Representation & Tax Problem Resolution
IRS HELP FROM A CPA
An IRS issue can be an intimidating and complex process. If you or your business face an IRS audit, have unfiled tax returns, or were hit with tax liens or tax levies, we can bring to bear years of experience in dealing with tax matters and IRS procedures to ensure that you are properly represented when dealing with the IRS and other tax authorities.
IRS tax problem resolution is a special area of our professional practice involving unfiled tax returns, unpaid taxes, tax liens or levies, audit representation and any other type of tax controversy. As a Certified Public Accountant, we are qualified to represent taxpayers before the IRS and other tax authorities. Some of the specialized services we provide in this area include the following:
- Offer In Compromise
- Installment Agreement
- Penalty Abatement
- Audit Representation
- Your IRS File
- Unfiled Returns
- Statute of Limitations
- Liens, Levies and Garnishments
- Innocent Spouse
- State Tax Problem Resolution
Offer In Compromise
Offer In Compromise is the government’s program that allows you to pay an amount you can afford to satisfy your entire tax liability. It even includes the penalties and interest. Yes, the amount you pay is based on what you can afford, not the amount you owe! The program allows an eligible taxpayer to pay what they can afford to pay regardless of the amount they owe. Once the offer is accepted and paid the taxpayer is then deemed current with all their tax liabilities.
Installment Agreement
We can secure an agreement with the IRS to allow monthly payments on your tax liability. The agreement keeps them from filing liens and levies as long as the payments are made. Without an agreement, the IRS may take money from your paycheck or bank accounts, they can file liens against your home or other property. We may be able to combine an Installment Agreement with Penalty Abatement, described below.
Penalty Abatement
The IRS increases the amount a taxpayer owes by adding penalties and interest to the unpaid tax. In many cases a taxpayer could pay the tax, but thanks to the penalties and interest, the ever-growing balance quickly becomes unmanageable. Often, we can have the penalties and interest reduced or eliminated by providing reasonable cause. Further, we may be able to couple penalty abatement with and Installment Agreement.
Audit Representation
You shouldn’t consider going before the IRS without representation any more than you would go to court without a lawyer. We know how to properly represent taxpayers under audit. We understand the implication of “friendly inquiries” from auditors and are aware of the red flags that may not be apparent to taxpayers representing themselves. We can close audits quickly and avoid expansion of the audit scope. Generally, the cost of representation is far less than the amount saved through qualified representation.
Your IRS File
We will secure your IRS transcripts and statement of account without raising any red flags. Filing under the Freedom of Information Act we can review and interpret the IRS transcripts for you. This record reveals your history with the IRS (according to them.) We may also anticipate their moves based on the information posted to your account.
Unfiled Returns
Failure to file a tax return is a criminal offense that may be punishable by one year in jail – for each unfiled return! In most situations, we can prepare and file delinquent returns avoiding exposure to such harsh penalties. In some cases, the IRS has prepared a return for you and assessed the tax based on that return. These returns will reflect income items without credit for deductions or exemptions you are entitled to and can have other implications. Therefore, the amount of tax assessed is higher than the amount we would calculate considering appropriate deductions and exemptions.
Statute of Limitations
The IRS has certain rules they must abide by, and has only so long to assess the tax they want from you. Also, there is a limitation on the time they have to collect a tax once it is assessed. As part of our engagement we will review the statutes to see if any have expired or are about to expire.
Liens, Levies and Garnishments
The IRS may take money from your paycheck or bank account by garnishment or levy. They may place liens on your house or other assets. We can often prevent this or have these lifted so you can afford to pay your bills. If you are presently dealing with or concerned about a lien, levy or garnishment we can help. Remember, the earlier we address the problem the more successful we are likely to be. Ignoring a tax problem is usually asking for a bigger and more expensive problem.
Innocent Spouse
Special new rules went into effect under the 1998 IRS Restructuring Act. The new rules protect innocent spouses from exposure to IRS collection actions related to a spouse or former spouse’s tax liability. If the IRS is trying to collect tax related to the income of a (current or former) spouse that you believe you don’t owe, call us for a free consultation.
State Tax Problem Resolution
If you have problems with the IRS, the state is not far behind. State taxing authorities can often be more aggressive than the IRS. However, we can employ many of the same tools that are available at the federal level. If you are facing tax problems, call us for a free consultation.