Tax Problems

“We resolve serious tax problems.”

The tax code is complex and most taxpayers will face a tax issue during their lifetime. If you received a letter from the IRS showing a tax balance that you cannot pay, you may want to ignore it.  You may also want to disregard the letter stating that you are being audited. Though letters of this nature are  nerve-racking, the best thing you can do is open the letter and be prepared to respond.

Collection Notices

By disregarding collection letters, you are leaving yourself vulnerable to enforced collection action like liens and levies.  The IRS can easily garnish wages and levy bank accounts.  (They are not a typical creditor that has to go to court and obtain permission to do this. )  The IRS has access to your wage and income information and can easily send a levy notice to your employer.  Consequently, it is better to hire a competent tax professional to establish a payment plan on your behalf or find a more reasonable solution, such as Offer in Compromise (settle your tax debt for less than you owe) or Currently Not Collectible (temporarily not pay anything to the IRS due to a hardship situation).

Examination Notices

By disregarding audit letters, you may wind up with a tax liability that is truly not correct.  Additionally, you may have less options to contest the liability if you lose your appeals rights.  Just because you received this letter does not mean that there is something wrong with your return.  The IRS audits returns for various reasons including research purposes.  Sometimes, audits can be easily addressed through a well-written letter showing proof of each deduction. Depending on how much is at stake, you may want to hire a competent tax professional to represent you before the IRS or other tax agency.

If you have a tax problem and believe you need help, please contact our office for a consultation.