Back Tax Help (FAQs)

What do I need to do when I receive a letter from the IRS?

First, you should determine if the letter is correct, i.e., if the IRS says you owe money, are they correct?

What is the best way to proceed with a tax liability?

Call the IRS as soon as possible or have a tax professional represent you. Avoiding the problem is not a good option.

Do I really need a tax professional?

Professional tax advice will help determine the best resolution for your situation. They will know who to contact and how to ask the right questions to resolve the matter. You should only do this yourself if you have experience dealing with tax authorities.

Can my taxes be negotiated down or pay "pennies on the dollar"?

A lot of companies advertise that they can do this; however, this is only possible in limited instances and only if you meet the criteria for an Offer in Compromise. Sometimes the total amount owed can be reduced through penalty abatement.

Am I going to jail because I have not filed in years and/or owe taxes?

The only time you will go to jail is for tax evasion, including not filing tax returns or willfully not paying taxes on earned income.

What is the difference between a levy and a lien?

A levy is when the IRS actually takes money out of your bank account. A lien is a claim on an asset (i.e., your home) that the government uses to secure a debt.

Can any accountant or attorney represent me before the IRS?

Only CPAs, Enrolled Agents (EAs) and attorneys can represent the taxpayer before the IRS. However, it depends on their specific area of practice. Not all of them represent the taxpayer before taxing authorities. They may not want to do this kind of work and may not have the expertise to deal with the IRS and states in tax issues. CPAs and EAs can do everything that an attorney can do in representation except represent the taxpayer before the U.S. Tax Court in Washington, D.C.

Can you find out how much I owe?

Yes. I can order audit transcripts from the IRS and state taxing authorities that will clarify exactly how much you owe along with any penalties and interest.

Still have additional questions? Call David Love CPA at 704-688-5995 today to request a no obligation, free consultation.