IRS Problem Solving

General Description

IRS tax problem resolution is a special area of our professional practice involving unfiled tax returns, unpaid taxes, tax leins or levies, audit representation and any other type of tax controversy. As a member of the American Society of Tax Problem Solvers we are uniquely qualified to represent taxpayers before the IRS, California Franchise Tax Board and other tax authorities. Some of the specialized services we provide in this area include the following:

                Offer in Compromise
                Installment Ageements
                Penalty Abatement
                Audit Representation
                Your IRS File
                Unfiled Returns
                Statute of Limitations
                Liens, Levies and Garnishments
                Innocent Spouse Representation  

Offer in Compromise

Offer in Compromise is the government’s “Let’s Make A Deal” 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 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 IR 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 are able to have penalties and interest reduced or eliminated by providing reasonable cause. Further, we may be able to couple penalty abatement with an 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 a taxpayer representing themselves. We are able to close audits quickly and avoid expansion of the audit scope. Generally, the cost of the representation is far less than the amount saved through qualified representation.


Your IRS File


We will secure your IRS file 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 unfilled year! 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. Therefore, the amount of tax assessed is higher than the amount we would calculate considering appropriate deductions and exemptions.


Statutes of Limitations


The IRS only has so long to assess the tax they want from you. And, there is a limitation on the time they have to collect 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 Garnishees


The IRS may take money from your paycheck or bank account by garnishee 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 garnishee 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 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, callus for a free consultation.

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