Solving IRS Problems & Reducing Back Taxes

Advisory, Compliance, Outsource CFO & Controller

Once the IRS catches up with you, you will face penalties and interest, and for non-filed taxes, the possibility of jail time! This will put you in a very difficult position, you will want professional guidance from an experienced CPA accounting firm like us.

Fortunately, there are ways to reduce the sting of back taxes. You can negotiate with Tax Authorities to lower the overall liability, reduce or eliminate penalties, and implement manageable payment plans.  By working with a qualified CPA firm, you will have the advantage of experienced negotiators on your side.  In many cases, our clients never even speak with the IRS.

Don’t let your tax problems fester any longer!  If you are experiencing any of the issues shown below please give us a call.  We’ll be glad to hear about your situation and give you a free, confidential consultation.


IRS Audit Representation
Nothing strikes more fear in the hearts of taxpayers than receiving an audit letter from the IRS.  These audits take a lot of time, requiring extensive records to substantiate each item reported on your tax return. The IRS often will recalculate your tax and send you home with a hefty tax bill as your parting gift. However, the recalculation may not be entirely accurate, if the auditor does not understand the entirety of your transactions.

So, although you may want to respond to a letter or notice from the IRS, it’s not always a good idea, without a professional CPA advising you in the matter.  While taxpayers can and do successfully defend themselves in an audit, without an experienced tax professional in their corner, their odds of completing the audit unscathed go down dramatically.

As your representatives in an IRS or state tax audit, we’ll advise you on how to reduce or minimize your tax liability, as well as handle all communications with the IRS or state tax authority.
If you are facing a tax audit, call us right away.  With us in your corner, you’ll have professional and experienced advice and guidance.  Most of our clients never have to talk with an IRS agent – we do all the work for them.


Back Taxes Owed
This is an unfortunate but very common situation in which people can find themselves.  When you haven’t paid enough taxes in the past, or no taxes at all, for one or more years, and the IRS-imposed penalties have been piling up.  Before you know it, your account is so far in arrears or the penalties so high, you feel like you will never catch up and start to feel desperate.

Fortunately, we have several ways to help our clients out of this IRS mess.  Once we know your situation, we can recommend and follow through on one of several solutions.  In most cases, we can significantly lower your liability for penalties – and in some cases, correct tax errors that have led to unfair debt.

Here are two of the possible tax relief programs available from the IRS:


Offer in Compromise
For certain situations, the IRS will accept a lower amount than what they believe you owe (with penalties and interest), under the Offer in Compromise program.  Our experience tells us how deep a discount you can expect to have approved with this program.  Try to pay too little and you risk getting your offer rejected; offer too much and you risk paying more of your liability than you might need to pay.  Relying on a qualified CPA firm like us is the smart way to approach the IRS with an Offer in Compromise.


Payment Plan
Whether eligible or ineligible for the Offer in Compromise program, we can arrange a payment plan for you with the IRS and the state taxing authorities.  This generally requires a set monthly payment over a certain time period – normally two to seven years.  While not as forgiving as an Offer in Compromise, there are still many ways we can reduce your tax liability with this program.


Non-Filed Tax Returns
We’ve seen this movie before, and it can end very tragically – with taxpayers who can be incarcerated for up to a year for every year they didn’t file, and have property levied and wages garnished.
Working with us, most clients have been able to avoid this unhappy ending – as we can help prepare and file the non-filed returns, negotiate reductions in fines and penalties, and implement payment plans with a promise to file returns regularly in the future.


Payroll Tax Problems
This is one of the most common problems for small businesses, yet it is the most severely punished offense.  That may be because about half of the taxes due are withheld from what employers would otherwise pay employees, so it is considered a misappropriation of employee compensation.  If you owe back payroll taxes, call us right away so we can represent you in a settlement with the IRS.


IRS Lien
A lien filed by the IRS on your home or other assets can do more harm than you think.  You might not be able to open a checking account, take out a mortgage, or even obtain a credit card – since the lien will show up on your credit reports.  This issue should be handled promptly – before the lien occurs.  If you have received a notice from the IRS threatening to place a lien on your property, please call us right away for representation.


IRS Levy
Having the IRS take money out of your bank account is no fun at all.  An IRS levy should not be allowed to occur or continue if you take the right steps to avoid it.  We’ve often steered clients out of these bad situations and lowered their tax liability along the way. By working with the IRS, we can often get levies released and once again put clients in good stead with the IRS.


IRS Seizure
When the IRS seizes someone’s home or car, they generally seize other assets, as well, such as boats and motorcycles.  That’s because they immediately sell these assets for much less than their market value, in order to collect that person’s tax liability.  IRS seizures usually happen only after repeated attempts to collect the tax, penalties, and interest that they have assessed and believed are owed by that person.
Don’t let this happen to you!  Contact us before you get that dreaded letter stating the IRS is about to seize your home, car, and other assets, including your retirement savings.


IRS Wage Garnishment

Another awful outcome of non- or underpayment of tax liabilities is an IRS wage garnishment.  If the IRS so chooses, it can levy money from your bank account, but if your bank balance isn’t that large, they can start making money from your paycheck. Under wage garnishment, your employer is legally obligated to deduct a substantial amount of your pay and send it to the IRS.

Once this starts, you lose much of your income until the tax liability has been paid – UNLESS you take action with the IRS and know what to do. If your wages have been garnished by the IRS, or if the IRS is threatening to garnish your wages, please call us right away to represent you in negotiations. Most often, we can change this onerous wage-shrinking tactic into a reasonable payment plan that you can handle, and that is not nearly as burdensome on your income flow.


Innocent Spouse Relief
Once in a while, a client is the victim of tax or other types of fraud, committed by his or her spouse or ex-spouse.  In those cases, the IRS has a provision to keep the victim from being prosecuted or penalized.  If this has happened to you, we can help make sure you are protected by this law.

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