IRS Problem Resolution

 IRS sends out notices to taxpayers every year demanding additional tax payments with penalties and interest included.  Receiving a notice from the IRS can be intimidating and confusing.  Ignoring the notice does not make the problem go away.  Responding incorrectly to an IRS notice can also cause problems.   A trained and experienced tax professional is your best defense to ensure the correct information is provided to resolve your IRS problem.

When dealing with IRS problems, most people have a misconception of what the IRS can and cannot do during the process.  The IRS provides taxpayers with instructions on how to obtain copies to the Taxpayer's Bill of Rights when sending notices to assist the taxpayer in learning about their rights.  Most taxpayers find the information as confusing as the notice received.  This is where a seasoned, trained professional can guide you through the process, offer an honest opinion regarding your situation, offer potential solutions and provide peace of mind.

When you receive a notice regarding an IRS tax problem, your financial future could be in jeopardy.  Federal tax liens could be filed.  These filings are public record.  This could impact your credit rating and tie up your personal property and real estate.  Several solutions are available including Offer in Compromise and various types of payment plans.  Unresolved IRS problems could cause you to lose your assets, your job and your self-respect.

The total audited individual returns increased by 7 percent (1,384,563 returns) in 2007.  This is the highest number of returns audited since 1998.  The IRS has also increased their effort in reviewing flow-through entities (S-Corporations and partnerships).  Often IRS tax problems occur when the IRS only receives part of the information in their system.  A few of the most common errors identified by the IRS are:

• Incorrect or missing social security numbers
• Incorrect tax entered from the tables
• Computation errors in figuring the child and dependent care credit or the earned income credit.
• Missing or incorrect identification numbers for child care providers.
• Withholding and estimated tax payments entered on the wrong line, and
• Math errors,

 Delays in resolving your IRS tax problem could cost you in unnecessary penalties and interest.  In some situations, the penalties can be higher than the original tax amount owed.  The amount and type of penalties charged will depend on the type of tax problem claimed in the notice.  There may be more than one type of penalty included in the assessed amount if there is more than one type of IRS problem included in the notice.  Every attempt should be made to remove or reduce the penalties.

DL Long, Certified Public Accountant, PC can provide assistance in determining if the IRS has all the necessary information.  We can identify what additional information may be required to resolve the tax problems.  We can handle all communications and correspondence with the IRS throughout the duration of your case.  Contact us and remove the stress from dealing with a bad tax situation.  We have assisted clients in coping with and resolving their personal and business tax problems with the IRs and with various state taxing agencies.