The Lowest Tax Balance Possible
Does the IRS say you owe more than you know you should owe? It happens–all the time. And, luckily, there are remedies for this very situation.
IRS and state audits.
The best way to reduce your tax liability on audit is to have a strong defense.
The IRS’s primary function is to verify that taxpayers correctly report their tax liabilities. Audits occur as a result of automatic processing via computers that detect real or possible errors on returns. Most of the time when an audit happens, it is meant to be a verification process.
If your return is selected and questioned, chances are that the IRS will assume that it is incorrect until proven otherwise. For the uninitiated, these procedures and seemingly hostile IRS agents are both technically complex and emotionally challenging. Because people are sometimes confused, angry or scared when the IRS contacts them, they don’t go through the correct steps to review their tax forms, which means that the IRS ends up getting more tax than it should. A tax professional can go a long way in ensuring that this does not happen to you.
Here is more information about the IRS audit process. If you are tired of reading and ready to take action to manage your IRS audit, call us at 800-521-0230 to see how we can help.
If you haven’t filed your tax return yet, you should inquire about our tax return audit defense. This is a service where you pay a small upfront fee at the time the tax return is filed and, if there is an IRS or state audit, we handle the audit at no additional cost. Find out more about audit defense.
Audit reconsideration request.
If your audit has closed and the time to appeal has passed, you may find that you can correct the audit by submitting an audit reconsideration request.
An audit reconsideration request can help you correct inaccuracies or unfair claims made by the IRS in an audit. If the IRS has made changes to your tax account and the tax liability is in excess of the correct amount owed, contact us to see how we can help submit an audit reconsideration request that is more likely to be accepted by the IRS.
Here is more information about the IRS’s audit reconsideration process. You can also call us at 800-521-0230 to see how we can prepare an audit reconsideration request for you.
Offer in compromise.
The IRS will, in some instances, settle a tax debt for less than the amount owed. Sometimes it will even settle for a surprisingly low amount.
The offer in compromise program is meant to provide a fresh start. The program was established to ensure that taxpayers have payment options, particularly if they have an unfair or unlawful tax debt burden and are being forced into IRS collections.
There are a number of rules that apply to this program and, naturally, details matter. Here are more of the details about the offer in compromise.
We advise clients on tax debt remedies such offer in compromises daily. Please contact us immediately if you have an unpaid tax debt and would like to consider whether an offer in compromise might be an appropriate solution. Our number is 800-521-0230.
The most common reasons the IRS assesses penalties include not filing or paying on time, submitting inaccurate returns, grossly understating your taxes on your returns, or general negligence or accuracy issues related to your returns.
If you have received an IRS penalty notice you should be aware that often it is possible to have penalties removed if you can show that you acted in good faith. Special circumstances can help. This includes IRS errors, a family death or illness, or even postage errors, or inaccurate advice from a tax professional.
If you have been assessed tax penalties, you will probably have a sense of how quickly the penalties and interest on the penalties can accrue. Interest is not normally a charge that can be reversed; however, penalties can often be abated with the help of a tax professional.
Here is more information on getting IRS penalties abated.
Call us today if the IRS has assessed penalties. We can help you determine if you qualify to have the penalty abated and help you prepare a penalty abatement request that is more likely to be granted by the IRS. We can be reached on our number at 800-521-0230.
Innocent spouse relief.
When you file a joint income tax return, both you and your spouse are legally liable for the income tax reported on the tax return. However, there are instances where it is clearly unfair to hold one spouse liable for the other spouse’s tax problems.
If you can show that you had nothing to do with the debt owed and were unaware of it at the time you signed the tax returns, you may qualify for innocent spouse relief.
You may qualify for innocent spouse relief if you filed a joint return with your spouse and you are being pursued by the IRS but you believe that you should not be held responsible for the debt. In order to qualify for innocent spouse relief, you will need to provide clear and consistent evidence showing that you were unaware of your ex-partner’s tax situation at the time the joint return was filed. You also need to make clear that there was no evidence of fraud on your part.
Here is more information about innocent spouse relief and how to qualify.
Get help today!
We are former IRS attorneys, appeals officers, and auditors who help taxpayers with unpaid tax debts. We offer compassionate, individualized service at manageable rates.
If you are in a situation where you cannot pay your debt owing, call today for a confidential consultation. Our number is 800-521-0230.
More About Reducing Taxes
- Innocent Spouse Can Benefit from Tax SavingsInnocent spouse relief is a complex and nuanced area of tax law that can be difficult to navigate. In order to successfully file a claim, one must have a thorough understanding of the rules and requirements. One example of this complexity is found in Section 6015(c), which does not require that the innocent spouse not benefit from the tax savings. This provision simply allows the parties to separate their taxes and each pay tax on their own income. This issue was addressed in the court case of Tobin v. Commissioner, 157 T.C. No. 7 (2021). It is crucial for those… Continue reading Innocent Spouse Can Benefit from Tax Savings
- Court Says IRS Issuing Six Summonses is Not Bad FaithThe IRS has a lot of power. This power stems from the broad Congressional grant of authority to examine books and records to enforce our tax laws. Since taxes impact every individual and business for every transaction (and even inactions), this allows the IRS to audit and inquire into just about anything it wants to. There are limits to this power. These limits are found in the summons rules as the IRS summons is the final tool the IRS has access to get records and information from “uncooperative” parties. The IRS will often use this power to investigate civil tax… Continue reading Court Says IRS Issuing Six Summonses is Not Bad Faith
- The Start of an IRS Audit: To Disclose or Not?If a taxpayer submits an amended return at the start of an IRS audit, can they avoid penalties for doing so? The rules allow large case taxpayers to make post-audit disclosures and avoid penalties. But what about smaller taxpayers? Should they make disclosures to IRS auditors at the start of the audit process? The Beigalski v. Commissioner, T.C. Summary Opinion 2019-35, case provides an opportunity to consider these rules. Facts & Procedural History The taxpayer was an independent contractor and then an employee. The taxpayer deducted 80% of her cell phone expenses, as she used the phone for her business.… Continue reading The Start of an IRS Audit: To Disclose or Not?