IRS Tax problem CPA discusses how the IRS must follow its own Rules | IRS self help tax relief tips

IRS tax problem CPAs must understand the IRS rules to work all the angles for Client tax relief. Hi, I’m Gary Bode an IRS tax problem CPA with a virtual office. Sometimes the taxpayer wins when the IRS defaults because it made mistakes. I understand many folks deal with their own tax problems without a CPA. So, this post deals with common sense self-help tips. But if you get uncomfortable, consider calling us for a free consult at (910) 399-2705.

Example of the IRS not following its own rules

TIGTA, Treasury Inspector General for Tax Administration, oversees IRS operations. Recently it found that the IRS doesn’t always tell taxpayers of their rights when requesting a consent to extend the time to assess tax. I doubt that many taxpayers would sign Form 872, Consent to Extend the Time to Assess Tax, without understanding what that implies. But folks with IRS tax problems often feel stressed and might succumb to IRS pressure.

Tax Problem tips for self-help tax relief

• Remember you may have State tax problems too, if not now, then eventually.
• Understand the tax issues underlying your tax problem.
• Understand the potential dollar amount involved. Maybe the tax problem isn’t such a big deal.
• Don’t procrastinate and waste valuable strategizing time. The IRS is slow but they don’t forget about you.
• Did the IRS play fair?
• Look at the big tax problem picture. For example, if your S Corporation has payroll tax problems it could affect your personal income tax liability too.
• Once IRS tax problems emerge, it’s logical they’ll look closely at other issues in the same tax year or similar issues in other tax years.
• Don’t incriminate yourself. Keep your IRS tax problems limited to what they’re interested in.
• Don’t always assume the IRS is right.
• The IRS always assumes it is right. You must prove otherwise to get any tax relief.
• Use the IRS to your advantage. I had a Client with cancelled debt tax problems. He asserted the bank made an error in issuing tax Form 1099-C. So we let the IRS do that.
• The IRS might not be wrong but overlooks legitimate deductions or tax credits.
• Don’t let the IRS prepare your tax returns.
• Look at the worst possible scenario and strategize to avoid it.
• Look at the best scenario and plan how to make that happen. Sometimes a CPA gradually positions a tax problem client for, say, an Offer in Compromise.
• Maybe you can get the IRS to put your account into Not Currently Collectible status.
• If you do owe tax, maybe you find tax relief through an Offer In Compromise. Here the IRS accepts less than what you as full payment.
• Always ask for penalty abatement.
• Communicate in writing. Wring out all the emotion. Edit it carefully. Wait three days to send it.
• Sometimes Folks just get riled up over a principle when the IRS demand is small. Sometimes it’s easier to pay them a few bucks and move on.
• Recognize tax problems often affect your credit rating.

Know when to seek CPA help

Considerations include;

• The amount of potential tax liability.
• Complexity of the tax issues involved.
• Cost effectiveness.
• Reduced stress.
• Timeline.

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