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Types of IRS tax problems and how to resolve them

There are many types of IRS tax problems that individuals and businesses may encounter. Some common tax problems include:

Failing to file a tax return: If you fail to file a tax return (1040, 1120, 1065, 941, etc.), you may be subject to penalties and interest for failure to file and for any unpaid taxes.

Owing back taxes: If you owe back taxes, personal income tax, corporate income tax, or employment 941 payroll tax, the IRS may take enforcement action, such as placing a lien on your property or garnishing your wages and levying your bank accounts.

Incorrect tax returns: If you make mistakes on your tax return, you may owe additional taxes, penalties, and interest. Amending your tax returns could correct these errors.

Disputing a tax bill: If you disagree with a tax bill, you can file an appeal with the IRS.

Tax evasion: Tax evasion is the deliberate attempt to avoid paying taxes. It is a federal crime punishable by fines and imprisonment.

To resolve your IRS tax problems, it is important to communicate with the IRS and try to resolve the issue as soon as possible. You may be able to negotiate a payment plan or offer in compromise settlement with the IRS, or you may need to seek the assistance of a tax representation professional such as an Enrolled Agent, CPA, or Attorney. It is also a good idea to stay current on your tax filings and payments to avoid future tax problems.

Our Whittier, Los Angeles, California tax representation firm assists taxpayers in resolving their tax controversy matters, call us today at 1-877-788-2937.

The Trust Fund Recovery Penalty (TFRP) is a very serious problem, it is a tax penalty that the Internal Revenue Service (IRS) can assess against individuals who are responsible for collecting, accounting for, and paying employment 941/940 payroll taxes on behalf of their business. The TFRP is assessed when the IRS determines that these individuals have willfully failed to collect, account for, and pay over the employment payroll taxes.

The TFRP is equal to the full amount of the unpaid employment taxes, including any interest and penalties that have accrued. It is assessed against the individuals responsible for the taxes, rather than the business itself. The TFRP can be assessed against individuals such as business owners, officers, and directors.

If the IRS assesses the TFRP against you, it is important to take steps to resolve the issue as soon as possible. This may involve negotiating a payment plan or an offer in compromise settlement with the IRS, or seeking the assistance of a tax professional such as an Enrolled Agent, CPA, or Attorney. Ignoring the TFRP can result in additional penalties and enforcement action by the IRS such as levies and liens.

We serve different industries, such as non-profit, tax exempt organizations, health & wellness, medical doctors, dentists, pharmacies and medical equipment rentals, we also help professionals, such as lawyers, attorneys, insurance agents, real estate agents, mortgage brokers, we also help contractors, HVAC, plumbers, painters, electricians, truckers, trucking, delivery and other construction businesses, we also help restaurant owners, franchises, franchisors and specialty stores.

IRS Audit is a review of your tax return to ensure that the information reported is accurate. If you are selected for an audit, it is important to be prepared and to cooperate with the IRS. Here are a few steps you can take to prepare for an IRS audit:

Gather supporting documentation: The IRS may request docu

mentation to verify the information reported on your tax return. Gather copies of documents such as receipts, bank statements, and other records that support the information on your return.

Understand the audit process: Familiarize yourself with the audit process and your rights as a taxpayer. This will help you feel more prepared and in control of the situation.

Consider hiring a professional: A tax representation professional such as an Enrolled Agent, CPA, or Attorney, can help you prepare for an audit and represent you during the process.

Be cooperative: During the audit, it is important to be cooperative and honest with the IRS. Do not try to hide information or provide false information, as this can result in additional penalties.

Keep records: Keep records of all communication and documents related to the audit. This will help you keep track of the process and may be useful if you need to appeal the audit findings.

By taking these steps and working closely with the IRS, you can increase your chances of a successful audit outcome.

IRS Appeal: If you disagree with the results of an IRS audit, you have the right to appeal the decision. The appeal process for an IRS audit is called the “Office of Appeals” process. Here are the steps you can take to appeal an IRS audit:

Request an appeal: To request an appeal, you must file Form 12203, Request for Appeals Review, within 30 days of receiving the audit report, or draft a protest appeal letter and address to the auditor and, or group manager.

Attend a conference: If you request an appeal, you will be scheduled for a conference with an appeals officer. During the conference, you will have the opportunity to present your case and any supporting documentation.

Submit a written statement: If you are unable to resolve the issue during the conference, you can submit a written statement outlining your position.

Consider other options: If you are unable to resolve the issue through the Office of Appeals process, you may be able to seek a resolution through alternative dispute resolution options, such as mediation or arbitration.

It is important to note that the appeals process can be time-consuming, and it is recommended to seek the assistance of a tax representation professional such as an Enrolled Agent, CPA, or Attorney, if you are considering an appeal.

Our Whittier, Los Angeles, California tax representation firm assists taxpayers in resolving their tax controversy matters, call us today at 1-877-788-2937.