Did you just get hit with an IRS audit recently? Do you owe back taxes to the IRS? Wondering how to respond to an IRS tax notice?
If you have a tax issue, you must act and act fast. The Internal Revenue Service is not an organization to be trifled with. They are very serious about what they do and don’t hesitate to take punitive action, such as property seizures if needed.
Hiring a qualified tax attorney to negotiate a payment agreement with the IRS on your behalf is of critical importance. How quickly you react to a tax issue will dictate how much interest or penalties you end up paying to the IRS.
In most cases where people own back taxes, the IRS does not remove the interest or the penalties but might reconsider if you are proactive.
Here’s what you should do if a tax issue was to arise.
Consult with a tax resolution expert or tax attorney and find out why you owe the tax.
The tax attorney would tell you if the tax can be reduced or removed. If the tax can be reduced, then the interest will be reduced too, depending on the tax issue.
What’s the tax issue here?
Is it a CP2000 notice?
A CP2000 notice is sent by the IRS when the tax return filed does not match the information they have about you. You will be asked to respond within a fixed time frame. If you don’t, then the IRS charges the tax they believe you owe to them along with interest and penalties. Consult with your tax attorney on how to handle this problem.
Is it because of incomplete or incorrect return?
The IRS does not like it when someone files an incomplete return or one with too many inaccuracies. In the case of the object, contact a tax resolution expert. The tax resolution specialist will go through your return in detail and tells you what needs to be done.
Is it because you failed to file your returns?
So you didn’t file a return. In that case, the IRS prepares a return for you, called a substitute return. This will contain the income information that the IRS has been able to obtain about you from your employer, bank and so on.
Don’t expect any credits or deductions in the substitute return. But what you can do is to consult with a tax attorney and file a return to replace the substitute return. This gives you a chance to reduce the interest to be paid on it. The important thing here is to act fast.
Defense Tax Partners is a leading tax resolution firm based in the USA. We really care about our clients and know exactly what needs to be done in case a tax issue arises.
In fact, we have helped save our clients more than $200 million in tax penalties over the years. We act fast and negotiate a tax settlement with the IRS that works in your interest.
You’re welcome to call us for a free consultation at (866) 657-1040 or email your questions at clientcare@defensetax.com.