FAQ’s

Q? I think that the result I got in dealing with an examiner at the IRS is unfair or incorrect. What options do I have?

A.

The simplest, most cost-effective option is to protest the result and bring an appeal to the Appeal Branch of the IRS.  This is an informal setting with experienced IRS personnel who are experts at settling IRS matters.  You may also bring an appeal to tax court or federal district court.

Q? My spouse did something on our joint income tax return that I knew nothing about. Now the IRS is coming after both of us for back taxes. Do I have any recourse?

A.

You MAY qualify for innocent spouse relief if you meet all of the requirements.  If you do qualify, you will not be held liable for the taxes.

Q? I received a letter from the IRS or the state indicating that I have 30 days to object to their findings. Do I need to respond?

A.

That depends.  Do you agree with the findings?  If yes, sign the letter and either send a check or work out a payment schedule.  If you do NOT agree, YOU MUST ACT IMMEDIATELY.  Once 30 days passes, you will no longer be able to challenge their findings.

Q? Someone from the IRS showed up at my business unannounced. What does that mean?

A.

When someone from the IRS shows up at your home or business, best not to talk to them, but to refer them to your attorney.  You do want to ascertain who it is from the IRS that’s knocking, though.  Is it a Revenue Officer (that means they are there to try to collect money) or a Special Agent (they investigate criminal cases and have badges and guns)?

Q? I have an offshore account that has never been reported to the IRS and am worried because I’ve seen a lot of press about offshore account cases. What should I do?

A.

Now is the time to come forward if you have an unreported foreign account.  There are several paths to choose from based on your facts and circumstances, including a voluntary disclosure program that the IRS has open.  Contact an experienced professional to help you decide what course of action to take.

Q? I have treated people who do work for my company as independent contractors. The state or IRS is claiming that they are employees. What should I do?

A.

The state and federal governments have strict standards for determining the difference between an independent contractor and an employee.  This determination has big consequences.  Get a professional on your side.

Q? Can I settle my tax debt for pennies on the dollar?

A.

In some instances, you may be able to settle your tax liability for less than what you owe through the IRS Offer in Compromise program.  Not everyone qualifies.

Q? The IRS has sent me a letter number CP 297 – Notice of Intent to Levy and Notice of Your Right to a Hearing. What should I do?

A.

Call an attorney immediately.  The IRS will levy soon and it may be necessary to have a hearing to avoid the levy action.

Q? I haven’t filed income tax returns or paid taxes in several years. What should I do?

A.

File the returns as soon as possible, even if you cannot pay the tax liability now.