The IRS, like the rest of society, has faced several challenges as a result of the pandemic. Some of those challenges are still lingering, such as funding, backlog, lack of guidance and inexperienced auditors. Efforts to fix these problems are underway but will take time. As taxpayer advisors, it’s important to recognize the limitations in
Once the IRS makes an assessment against a taxpayer, the taxpayer will receive several notices before the IRS takes enforced collection action.
This is the notice that is required before the IRS can levy and seize a taxpayer’s assets.
Some form of response should be sent with respect to these notices. The response, along with a copy of the notice, should be sent by certified mail, return receipt requested, using the envelope provided by the IRS. The purpose in sending a response is so that it will show that the taxpayer is concerned about the taxes and is not ignoring them. …
Continue Reading Negotiating with the IRS Collection Division
When a tax return has been selected for office examination, generally the examination of the return will be conducted at the office of the IRS. Normally a taxpayer will find an office examination has begun when he or she has received a letter or telephone call from the IRS informing him of such examination and that the IRS wants further records and information. Returns selected for office examination present issues which require some analysis and judgment in addition to verification of records. …
Continue Reading A Guide to Office Audits with the IRS
There is a general misconception about what the IRS can and cannot do. Owing money to the IRS is not like owing any other creditor. The IRS is one of only a few creditors who can seize and sell your home even though state law may prohibit other creditors from doing the same.
Dealing with the IRS can be confusing, time-consuming and risky for someone who is not familiar with IRS procedures. Most taxpayers are not very successful in handling their own affairs with the IRS. The primary reason is the procedures of the IRS are extremely complicated, and most taxpayers do not understand how to protect themselves. In addition, some taxpayers become too emotionally involved which reduces their effectiveness in dealing with the IRS. However, no taxpayer should be afraid to CHALLENGE THE IRS. Although most taxpayers have a great fear of the IRS, they know little about how it works and the IRS benefits from this ignorance.
Continue Reading The Basics of the IRS and Tax Audits