Got IRS Problems? (Representation Services)
Are you having IRS problems? Perhaps you’re being audited or received a Notice of Levy on your bank accounts or an embarrassing wage garnishment to your employer. Be careful trying to resolve the issues on your own. Let us take care of them.
We’ve helped people with tax problems for over twenty-eight years and have former IRS and FTB personnel to work your case. We can review your case to determine the best options available and meet with the IRS or FTB instead of you.
The IRS seems to be on a mission to collect more taxes and has increased the scope and intensity of its audits and collection activities. Its actions show that it has no respect for “fairness” or one’s due process rights and never apologizes for the errors it makes or the grief it causes people
The IRS apparently wants to frustrate people to the point that they simply give up and pay the taxes (even if they don’t actually owe them). It sends out Notices demanding additional taxes (even though half of the Notices are wrong) and has curtailed its taxpayer services making it difficult for anyone to correct the IRS mistakes.
If you’re being audited and believe that you can take records and receipts to the audit and will be treated fairly, you’re naïve. “Fairness” is not in the IRS vocabulary, instead it wants to take the maximum possible from you and often disallows legitimate deductions and tax favored benefits using technicalities in the law.
If your audit is through the mail, expect a bureaucratic nightmare. Arguing your case by correspondence is much more difficult than a face-to-face audit. Mail-in auditors often “misplace” records and copies of receipts sent to them or deny receiving them, giving the appearance that you “failed to respond timely”, thereby subjecting you to additional taxes and accuracy related penalties.
After months of trying to convince the IRS otherwise, many frustrated people simply give up and pay the tax, which is what the IRS wants.
Audits are about more than simply matching records to receipts. The self-employed often must prove how they maintained their household with the profit reported on their tax returns. The IRS may add phantom income to equal the amount it believes you must have earned (but failed to report) based on your lifestyle and the earnings of others who run similar businesses or hold similar licenses.
During an audit when the IRS makes adjustments that increase your taxes, expect it to make the same changes to the other two open tax years. This technique allows the IRS to triple its return per-auditor-hour and collect an accuracy penalty for each year.
If you’re unable to pay your taxes in full, you may have other options. Perhaps we can get the IRS to back off and tag your case “currently non-collectible” or eliminate your taxes using bankruptcy or settle your taxes with an offer-in-compromise (if you qualify) or stop a wage garnishment by setting up a payment plan. (See our article: “Can’t Pay the IRS—what Options do You Have”).
Before you meet with the IRS on your own, we should review the Notices you received to explain the types of actions that may be used against you or the techniques to disallow your tax benefits. (See our article “What to Expect at an IRS Audit”).
If you decide to battle the IRS on you own, be aware that it has a whole arsenal of tricks to disallow your deductions and tax benefits and will add accuracy related penalties to the new amount you owe. (See our article: “IRS Audit Tricks to Take MORE from You”).