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Tax Controversy and Dispute Resolution
The IRS has estimated that over 8 Million Americans owe over $83 Billion in back taxes. With close to a million tax returns audited ever year, the number of Americans who require representation in front of the IRS is constantly increasing. In certain cases, state and local taxing agencies can be even tougher to deal with than the IRS. There are a wide variety of strategies to handle outstanding issues based the facts and circumstances of each individual case.
Responding to Notices from the Tax Authorities
When that dreaded moment comes and you receive a notice from a tax authority, whether it is the IRS, a state tax authority such as the California Franchise Tax Board, or a local tax authority such as the City of Los Angeles Department of Finance, it is essential to respond in a timely manner. If more time is needed to fully respond to the notice, the tax authorities will often grant the additional time required provided the request comes before the deadline listed on the initial notice. Having a tax professional respond on your behalf from the start of the process can help ensure that your situation is handled properly the first time around
Reducing Outstanding Tax Liabilities and Coming to a Resolution of Outstanding Tax Issues
One of the biggest costs that comes with paying off old tax bills can be the penalties and interest that have been added to the initial tax liability. Sometimes the penalties and interest that have accrued to date turn out to be greater than the initial tax liability itself. In certain cases, the various tax authorities will waive these penalties as well as the interest that has accrued on the penalties if the request to waive the penalties is properly submitted. This is an important but often overlooked method for reducing outstanding tax liabilities. Another overlooked method for reducing outstanding tax liability is simply to file a tax return for the tax year in question. The reason is that in cases when taxpayers fail to file a tax return for a certain year, tax authorities may file a substitute for return, which is invariably less favorable to taxpayers than if the taxpayer had filed tax returns for themselves. There are myriad other techniques to resolve outstanding tax issues. For example, in certain circumstances tax authorities may be willing to accept an offer-in-compromise in which the tax authority in question agrees to a settlement of the entire tax liability for less than the entire amount owed.
