Communicating with the IRS can be daunting. For those unaccustomed to the rigors of sitting on hold and waiting for an agent to answer questions about their case, or knowing which questions to ask once an agent has answered the line, it can be overwhelming. Not only can we assist you with any delinquent tax returns, but we can also represent you after the fact. Whether you are looking at negotiating a tax bill, wanting to file an Offer in Compromise, representation for an impending tax audit, or even to answer a simple letter, our CPAs are prepared to help.
File Delinquent Tax Returns and Related Forms
Each year hundreds of thousands of Americans, individuals, families and businesses dutifully file their tax returns each year and, while that number is high, it is estimated that at least 7 million individual taxpayers, or 5% of the population, fail to meet their obligations. Often times, this is the result of pure oversight, however, other times this failure to file may be a matter of misinterpretation of the tax law.
Our CPAs frequently meet with taxpayers who have been delinquent for multiple years of returns. Many of these clients have received letters from the Internal Revenue Service (IRS) notifying them of their failure to file, often including penalties and interest, while others have managed to slip under the wire of the IRS without notice. Whatever the case, the one thing that all these clients have in common is that they’ve chosen us to represent them and help resolve their cases.
The longer you wait to file a delinquent return, the more the economic effect on you. Most often, the financial implications come in the form of additional interest attached to the penalties and fees already charged, however, in extreme circumstances, the IRS may also levy your accounts or threaten liens on property for unpaid tax debt. The IRS has a statute of limitation of ten years to collect on owed taxes.
If you are due a refund, our CPAs may be able to help you get any possible monies you are entitled to. The IRS statute of limitations on filing a return or amended return for a refund is three years, so it is in your best interest to file as soon as possible for these as well.
File Tax Returns if You Have No Records
There are times when a client hasn’t filed taxes because they do not have any records. A tax return may still be able to get filed if this is your case. Our office will work with the IRS to identify any reporting that aligns with your social security number, such as W-2s or 1099s, or we will work with you to calculate your estimated taxable income.
Help Prepare and File an Offer In Compromise
In the cases with large amounts of IRS debt, not only can we assist with any delinquent returns, but we can also help you prepare and file an Offer in Compromise. While not everyone is eligible for an Offer in Compromise – all returns must be current and you cannot be in the middle of a bankruptcy proceeding, for example – your unique circumstances may qualify you. This can be a way to reduce your tax debt owed to an amount you can afford to pay. Factors that are considered are your ability to pay, income level, expenses and asset equity.
If an Offer in Compromise is not an option, or your petition to receive one is rejected, we still may be able to help. The IRS is willing to work with taxpayers to pay their debt and you may be eligible for a payment plan.
No one looks forward to receiving a letter from the IRS informing them they are getting audited. In the unfortunate case you are the recipient of such a letter, our CPAs are here to help you. Generally, audits are chosen because the IRS has found a problem with your return. Whether the audit is focused on personal or business taxes, hiring our firm to help you navigate it will allow you to understand the process. While not every audit will require professional representation, it is in your best interest to consult with one prior to answering any letter sent to you.
During an audit, the IRS is allowed to review a taxpayer’s books and records; they are even allowed to inspect business premises in the event of a business audit. An audit is usually conducted either by mail or through an interview at the taxpayer’s home or business, although some can be conducted at an accountant’s office. In the event of a face to face audit, it is important to have representation to protect you from unwittingly disclosing more information than required. Often times, taxpayers, when on their own, attempt to talk themselves out of trouble, when the opposite usually happens because the taxpayer provides excess information that leads to additional tax.. By letting our firm represent you, we can control the process by conferring any questions asked by the Revenue Agent with you and presenting a suitable answer.
No matter the reason you have for needing tax resolution, Toyer, Dietrich & Associates is ready and willing to help you. Our CPAs are highly trained and experienced in communicating and resolving issues with the IRS.