IRS Representation
- IRS Audits – Business & Individual: Income, Payroll, S-Corp Reasonable Compensation, Employee vs. Sub-Contractor, Etc.
- Collection Issues: Offers in Compromise, Installment Agreements, Levy and Lien Removal, etc.
- State Audits, Worker’s Comp Audits, Sales Tax Audits, Payroll Audits
An IRS audit can be an intimidating and complex process. If you and/or your business face an IRS audit, we can bring to bear years of experience in dealing with tax matters and IRS audit procedures to ensure that you are properly represented when dealing with the IRS and other tax authorities.
IRS tax problem resolution is a special area of our professional practice involving unfiled tax returns, unpaid taxes, tax liens or levies, audit representation and any other type of tax controversy. An Enrolled Agent is uniquely qualified to represent taxpayers before the IRS and other tax authorities. Some of the specialized services we provide in this area include the following:
- Offers in Compromise
- Installment Agreements
- Penalty Abatement
- Audit Representation
- Your IRS File
- Unfiled Returns
- Statutes of Limitations
- Liens, Levies and Garnishes
- Innocent Spouse
- State Tax Problem Resolution
Offers in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. The IRS considers your unique set of facts and circumstances including ability to pay, income, expenses and asset equity. Once the offer is accepted and paid the taxpayer is then deemed current with all their tax liabilities.
Installment Agreements
You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately. However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full. Before you apply you must have all returns filed. Mark Cross Tax Services works with you and the IRS in making a payment arrangement that works for both you and the interests of the IRS.
Penalty Abatement
The IRS increases the amount a taxpayer owes by adding penalties and interest to the unpaid tax. In many cases a taxpayer could pay the tax, but thanks to the penalties and interest, the ever-growing balance quickly becomes unmanageable. Often we are able to have the penalties and interest reduced or eliminated by providing reasonable cause. Further, we may be able to couple penalty abatement with an Installment Agreement.
Audit Representation
You shouldn’t consider going before the IRS without representation any more than you would go to court without a lawyer. We know how to properly represent taxpayers under audit. We understand the implication of “friendly inquiries” from auditors and are aware of the red flags that may not be apparent to a taxpayer representing themselves. We are able to close audits quickly and avoid expansion of the audit scope. As an Enrolled Agent there is limited client privilege that allows confidentiality in situations in which the taxpayer is being representing in cases involving audits and collection matters.
Generally, the cost of representation is far less than the amount of savings through qualified representation.
Your IRS File
We will secure your IRS transcripts and statement of account without raising any red flags. Filing under the Freedom of Information Act we can review and interpret the IRS transcripts for you. This record reveals your history with the IRS (according to them.) We may also anticipate their moves based on the information posted to your account.
Unfiled Returns
Failure to file a tax return is a criminal offense that may be punishable by one year in jail-for each unfiled return! In most situations we can prepare and file delinquent returns avoiding exposure to such harsh penalties. In some cases the IRS has prepared a return for you and assessed the tax based on that return. These returns will reflect income items without credit for deductions or exemptions you are entitled to and can have other implications. Therefore, the amount of tax assessed is higher than the amount we would calculate considering appropriate deductions and exemptions.
Statutes of Limitations
The IRS has certain rules they must abide by and has only so long to assess the tax they want from you. And, there is a limitation on the time they have to collect tax once it is assessed. As part of our engagement we will review the statutes to see if any have expired or are about to expire.
Liens, Levies and Garnishes
A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt. If you do not pay your taxes (or make arrangements to settle your debt), the IRS may seize and sell any type of real or personal property that you own or have an interest in.
Wage garnishment, the most common type of garnishment, is the process of deducting money from an employee’s monetary compensation (including salary), sometimes as a result of a court order. Wage garnishments continue until the entire debt is paid or arrangements are made to pay off the debt. Garnishments can be taken for any type of debt but common examples of debt that result in garnishments include: Child support, defaulted student loans, and taxes.
We work with both the IRS and any state to lift levies, stop garnishments and resolve your tax issue. Remember, the earlier we address the problem the more successful we are likely to be. Ignoring a tax problem is usually asking for a bigger and more expensive problem.
Innocent Spouse
Special new rules went into effect under the 1998 IRS Restructuring Act. The new rules protect innocent spouses from exposure to IRS collection actions related to a spouse or former spouse’s tax liability. If the IRS is trying to collect tax related to the income of a (current or former) spouse that you believe you don’t owe, call us for a free consultation.
State Tax Problem Resolution
If you have problems with the IRS, the state is not far behind. State taxing authorities can often be more aggressive than the IRS. However, we can employ many of the same tools that are available at the federal level. If you are facing tax problems, call us for a free consultation.