IRS Can I appeal that?

Yes, but there is a set time limit for you to submit the appeal. Some of the more typical IRS actions you would appeal include proposed audit changes by revenue agents, proposed wage and bank levy actions by revenue officers, denial of penalty abatement requests, and offers in compromise when you can't agree with the offer specialist. You can have 15 days, 30 days, and some even have 60 days to appeal the proposed action. It is so very important to read the IRS letters and see what the deadline for appealing a proposed action is.  While we would like to represent taxpayers from the beginning of an IRS inquiry in realty we often get involved after the taxpayer's initial attempt has failed. Often the time allowed to submit the appeal has already expired or is quickly approaching. While we can still generally find a effective avenue to get your case heard by an appeals officer the normal appeal within the time alloted is easier and happens when a timely request is submitted. Don't ignore IRS letters they could contain dates that are important to your case!

Robby

Does the IRS mistreat taxpayers?

Generally no but in 27 years of representing taxpayers I have seen it happen. Correspondence audits or mail audit as I call them is a likely spot for this to happen. You aren't dealing with a person. You generally have no name or ID number for a revenue agent. Recently I had a case where the taxpayer was notified of a correspondence exam and was sent a document request. We sent in the information, the IRS requested more and gave us ten days to send in the information. Only problem was the postmark on their letter was after the 10 days had expired. There was no way to comply. The IRS then doesn't provide a 30 day letter with appeal rights and the 90 day letter was never issued but the taxpayer was given one day to petition tax court or the tax was assessed. Obviously, the taxpayer's rights were just trampled in this matter. Well,  I will just dig in my heels and get the taxpayer his opportunity to present his documents and facts in the case.  If you think you have been mistreated by IRS don't just give up there are often alternative ways to get an opportunity to present your information and get a fair shake. 

Fixing IRS problems: It's more than numbers

Most people who come to my office with tax issues are normally anxious and confused about whats filed or what they owe. Having done this for 27 years, I can tell you that it is almost never as bad as you think. I will meet with you, and in most cases, I will call the government while you are here so we can get a handle on your situation.  After I get the documents from the IRS, I can tell you the likely course of action for you, what actions the government will be taking, and how we are going to respond to them. Most folks feel better just knowing what is going to happen and what they need to do. As your power of attorney, we are with you the entire process.  We receive copies of all notices from the IRS and we will contact them on your behalf when the need arises. I file current 1040s for many people every year who originally came to see me with tax issues. I enjoy solving tax problems for people as well as keeping them from happening again. It makes for happy customers!

Robby Selph
Selph & Friday CPA
Phone: 903-792-0281www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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Does the IRS Audit By Mail?

Yes they do. Most IRS audits are actually conducted through the mail instead of face to face meetings with revenue agents. These are called correspondence audits. It is like being audited by a computer. There is not a name assigned to your case, you can't generally call anyone, and you send your responses to an address from the IRS notice. It takes extra effort to get the documents to IRS so you can get the exam completed and your story told. We send all documents on corresponding audits by certified mail. I have had document requests from IRS have a postmark later than the deadline for response. Hard to meet a deadline if you are notified after the fact. Correspondence audits can be effectively handled but it often requires a healthy dose of tenacity and a bulldog approach. As always, if we don't agree we will appeal the findings.


Selph & Friday CPA
Phone: 903-792-0281www.selphandfridaycpa.com

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The IRS Is Auditing My Tax Return

When this happens you will get a letter from IRS. It will either be a correspondence audit or an audit with a revenue agent. Correspondence audits are difficult because you are dealing with an address and not a person. If it is an audit with a revenue agent, your letter will ask you to call for an appointment or they will tell you a time to appear at the IRS office. At this point you are going to make a decision whether to represent yourself or hire a qualified representative. If you hire us to represent you, we will get a power of attorney (IRS form 2848) and you generally have no contact with IRS. If it is a local agent, we will likely know the agent and have had previous audits with them. If you represent yourself, we often enter the audit after you have met with the agent and don't feel comfortable with them or their proposed changes to your tax return. Our experience is that the best results are achieved when we deal exclusively with the Internal Revenue Service and you only provide us the necessary documents they are requesting. If we believe the agent takes a position we don't agree with you still have options and we will request a manager's conference or file an appeal for a hearing with an appeal's officer on any outstanding issues.

Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com

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Can My Tax Preparer Represent Me Before the IRS?

Attorneys, Enrolled Agents, and Certified Public Accountants can practice before the IRS provided a written authorization is signed by the taxpayer. Form 2848 Power of Attorney is the most common authorization furnished to the IRS. I have several clients whose tax preparer couldn't or wouldn't represent them and they had to do it themselves. Since they found it an unpleasant experience, they hired our firm because we do represent taxpayers who have tax issues. We don't turn red in the face when you tell us you are being examined, have unpaid balances to IRS, unfiled returns or other issues with the federal or state taxing entities. While the vast majority of our clients don't ever have any contact with the IRS if there is an inquiry from IRS then we know how to respond. With the written authorization form 2848, we deal with the revenue agents or revenue officers of the IRS and you have no contact with them in nearly all circumstances.

Robby Selph
Selph & Friday CPA
Phone: 903-792-0281www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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My bank account has been levied by IRS

Normally you will get a letter or phone call from your financial institution informing you that the Internal Revenue Service has levied your bank account and the amount in the account that day has been frozen. This isn't exactly the news you were hoping for but all is not lost. The money isn't sent to the IRS for 21 days. During this period of time an opportunity may exist to get a full or partial release of the levy from IRS. Wage levies are continuous while bank levies are one time events. Just the amount of money in the account that day is frozen. You can use your bank account the next day unless IRS levies again which is unlikely and I have never seen in 27 years of representing taxpayers. A word of caution not all financial institutions understand the one time bank levy process. I have sent the Internal Revenue Manual section on bank levies to financial institutions to help them understand that future bank deposits aren't subject to the levy. If IRS timing is bad and the bank balance is low then only a small amount is frozen. As always to get IRS to release levies you must be in compliance. Don't ignore IRS notices and let your bank account be levied. There are many options to prevent this from happening if you act on your tax issues.

I can't pay IRS my past due taxes.

While this may sound like a big problem it may not be as bad as you think. If you complete the IRS financial statement and can document that you have no ability to pay then I would suggest you consider these two options. If you have limited net worth and no ability to pay we can submit an offer in compromise to try to settle your tax debt. If an offer isn't suitable for you then your balance due can be placed in non collect status. No payments will be required unless IRS contacts you for updated financial information and determines you have ability to pay them. You could receive this inquiry if you have a significant increase in income. If your account is placed in non collect status you will receive an annual notice titled reminder of balance due. The IRS won't pursue collection action from this notice. The penalty and interest do continue to be added to your balance. However, the IRS only has a certain period of time to collect the taxes you owe. As always we are with you throughout the entire process of dealing with the Internal Revenue Service. There are options if you can document that you have no ability to pay IRS. If you ignore their notices and don't contact them then you risk IRS collection action on your wages and bank accounts.

Can I settle my tax debt with IRS?

Yes, if you qualify you can settle your tax debt for less than the full amount owed. This program is called OIC offer in compromise. I am often asked what will the IRS take to settle my tax debt? There is extensive documentation required that determines your ability to pay, income, expenses, and equity in assets. The amount to offer comes from this information. The IRS determines the most they can expect to collect from you and see if your offer is adequate. Your offer won't be considered by IRS unless you are current with all filing and payment requirements or if you are in an open bankruptcy proceeding. While your offer is being evaluated collection activities are suspended  and the period of time IRS has to collect your tax debt is extended. If your offer is accepted your federal tax refund for the year the offer is accepted will be retained by IRS and applied to your tax debt. There is an application fee and down payment requirement for submitting an offer unless you meet the low income qualifications.You must file and pay your taxes for five years after an accepted offer or the offer will be revoked and the tax liability will be reinstated by IRS. These are some of the OIC provisions but certainly not all. Submitting an OIC isn't the simpliest of tasks but well worth the effort if you can settle you tax debt. The recent fresh start program from IRS to help taxpayers has raised the OIC acceptance rate and offers hope for taxpayers who can qualify to satisfy their tax debts for less than the full amount.