Analysis and Scenario Evaluation
How to solve your IRS problems? Resolving your tax issues amounts to reconciling the IRS’s view of the problem to yours. A transcript analysis reveals the IRS’s position. We work with you to define your financial position. Then, it is possible to develop a resolution strategy.
What Does the IRS Think About You?
IRS Transcript Analysis
We are here to solve your IRS problems. But it is necessary to first know how your situation looks from the perspective of the IRS. How much do they think you owe, and for which years? Are there any other years under investigation? Are there any years for which they are still expecting a return? Is any of your tax debt about to expire? These and other questions can be answered through obtaining transcripts and talking to the IRS.
Here are some examples of issues to clarify:
Missing returns: Usually, the IRS wants to see filed returns for at least the past six years. But sometimes the number of years differs. This is important to know, as the IRS may be unwilling to talk before they receive the missing returns.
Amounts due: Penalties and interest keep accumulating. The current amount due may be more than you expect. The total amount can quickly add up when several tax years are involved. On the other hand, penalties sometimes can be abated.
Pending amounts due: The IRS may have started investigating more tax years without telling you. Also, they may file returns on your behalf. This “Substitute for Return” usually generates more tax due. It will also interfere with your ability to discharge taxes in bankruptcy.
Taxes about to expire: The IRS has 10 years (plus some extensions) to collect tax from you. Some of your taxes may be about to expire. This is usually good for you, but sometimes it is not. For example, the IRS may have levied “future guaranteed payments” (e.g. Social Security income). Such levy will continue beyond the usual 10 years. So, it is important to identify these issues before it is too late to fix them.
- Dischargeable taxes: Some of your tax due may be dischargeable in bankruptcy. But only older tax debt can be discharged. IRS transcripts show how much tax may be eligible for discharge.
What is Your Situation?
Financial Analysis
The IRS must, by law, consider your financial position. We will work with you to understand what your income, your expenses, and your assets are. It is important to consider your special circumstances. They may help you claim extra expenses, or show that assets are unavailable.
It is important to be honest. The IRS has many ways to find information about taxpayers. Major problems can arise if income, expenses, or assets are misstated or omitted. Imagine going through an 18-month-long Offer in Compromise process. If the IRS finds an omitted asset, the entire process may be a waste of money, time, and effort.
Which Way to go?
Evaluate Scenarios for Solving IRS Problems
The IRS is in the business of collecting taxes. But the law requires them to be fair. We use your financial situation to negotiate with the IRS. A successful deal preserves your best interest and looks fair to the IRS. There are many potential solutions to your tax problems. We analyze a broad range of strategies and identify the most promising approach.
A crucial point to remember is this: The IRS always has the last word when it comes to paying less than the originally assessed amount of tax. This is why it is so important to present your case in a manner that is both forceful and honest.
Contact us to let us talk for you to the IRS – so you won’t have to.