How do I resolve my IRS tax problem? As a tax attorney this is a common question I hear. The article and video below have been prepared to provide additional information regarding how to resolve an IRS matter or problem.
The resolution of your tax problem will depend upon the type of problem that you have. This article will discuss two types of IRS types problems: 1) IRS Tax Audits and 2) IRS Tax Debts.
If you are being audited by the IRS, you may be able to resolve the audit by providing the information the IRS is requesting. Generally, through an audit, the IRS wants you to verify certain figures such as income or other expenses or deductions take. If you can verify these figures as stated on your tax return, the IRS will likely not assess additional tax. If your audit is in regards to a specific interpretation of tax law, you may need review the code, regulations and case law to see how such item(s) have been interpreted in the past in comparison to your specific facts. Of course, it may help to contact a local tax attorney or CPA to assist you with understanding the tax laws and maybe represent you before the IRS auditor.
If you owe taxes to the IRS, you can resolve the debt my first making sure you are current and compliant. Current and compliant means that you have filed all tax returns that would currently be due and that you have made all necessary tax payments that would be due such as your 1040 estimated tax payments or 941 employment tax deposits (federal tax deposits). If you are not current and compliant, the IRS will not consider your installment agreement proposal or any other proposal such as an offer in compromise (also known as a tax settlement). Your resolution to the tax debt will be based upon your financial circumstances. As an individual you will need to prepare Form 433A. If you own any business interests, you will need to complete Form 433B as well so the IRS can view your interest in business assets etc. If you own a business that owes 941 employment taxes, you would complete Form 433B as well.
After you have completed the necessary financial statement, you need to compile all of the attachments that are required based upon the information you have provided. The attachments would include items such as pay stubs, bank statements, mortgage agreements, lease agreements and other bills and statements to verify your income and expenses. If you are working with a revenue officer, the documents and proposal will be submitted to such revenue officer. If you are not working with a revenue officer, you can contact ACS to propose an installment agreement, or you would submit your offer in compromise to an offer unit. Currently, there are two IRS offer in compromise units, one in Holtsville, NY and the other in Memphis, TN.
If you are experiencing problems with the IRS, speak with a Denver tax attorney at The McGuire Law. A tax attorney can represent you before the IRS and likely, assist with IRS procedures, help prevent enforcement action and potentially save you time, money and stres