IRS Representation/Tax Settlement
Professional representation can be vital during an audit, and our experience with tax authorities enables us to guide clients in their dealings with federal and state agencies. If you have been chosen for an audit, the professional representation you can find with our firm can put many of your worries at bay. We are ready and willing to answer any and all questions the IRS may be asking of you.
What is an offer in compromise?
If you owe a significant sum of money to the IRS or any given state, they will ask you to pay that amount in full, frequently adding penalties & interest. These may be underpayment penalties, failure-to-pay penalties, or failure-to-file penalties. Interest is also added.
If you are unable to pay the tax balance, the IRS and states have a program to settle these balances at pennies on the dollar. This is called an offer in compromise (OIC) and only works if the tax obligation is very large in comparison with your annual income.
For example, we recently won a settlement with the IRS – the taxpayer earned $58,000 per year, but the tax due was $97,000. The IRS factors in family expenses and other costs of living, so it is clear he would not be able to pay back the whole amount. We settled with them successfully at $9,000.
What to look for when selecting a firm for a tax settlement?
When searching for a tax settlement online, you will see many ads. Many of these are non-licensed firms that prey on persons in a vulnerable position. These companies will frequently overcharge the clients while doing minimal work – usually, they only put a stop on liens & a temporary hold on collections activity. However, since they are not Licensed IRS Enrolled Agents or CPAs, they do not have the authority for full Power of Attorney.
We, on the other hand, are licensed Certified Public Accountants and have a fiduciary duty to our clients. We do not oversell the service and are honest about expectations. You can expect premium service from us because not only do our licenses demand it – our personal values and reputation of our firm prove it.
If I don’t qualify for an OIC, what other options do I have?
We may be able to abate the interest & penalties from your account based on the first-time abatement or the reasonable cause exclusions. Please contact us below to see if you qualify.
Alternatively, the solution to any letters you have been receiving may also be to just file your back taxes. Let us know if you need assistance with that. We have a streamlined process for filing back taxes while simultaneously petitioning for the removal of penalties and associated interest.