Frequently Asked Question: Who Should I Trust to Handle My Delinquent Tax Problems?

February 2019 | Article

By Andres Jaquez and Leslie Spires

Dealing with IRS Trouble: A Fresh Start

A common issue faced by taxpayers dealing with delinquent taxes is being unsure of who to trust. If you are facing IRS trouble, you are likely:

  • Receiving phone calls every day from tax resolution companies, each with a promise to cure your tax problem.
  • Hearing commercials on the radio and seeing ads on TV promising great successes, including pennies on the dollar tax settlements.

All of these tax resolution companies are vying for your business and promising great success. However, selecting the right company can be a difficult choice.

Many people end up turning to the one person they do trust regarding taxes: their accountant. This is especially true if a long-standing and close relationship with their CPA has already been established. Your CPA, paired with an IRS Dispute Resolution and Collections team, can be a powerful combination when you are dealing with a delinquent tax problem.

Here are a few reasons why:

  1. You trust your CPA.
    You’ve already established a relationship, and knowing you have trustworthy representation is important.
  2. Your CPA agrees to bill you instead of charging you a retainer up-front.
    Most tax resolution firms, or other tax professionals you haven’t worked with before, will most likely ask for a retainer fee to get your case started. However, your CPA, who has an established billing history with you already, may agree to bill you as the work progresses. And, with the prior knowledge of your tax information, they may also be better prepared to estimate the cost of representation than a tax resolution firm.
  3. They have all of your records already.
    Your accountant already has access to your prior year tax information. Therefore, there is no need for you to incur the additional cost of getting someone else up to speed on your tax information.

It’s best to use a team approach. Pairing your CPA with a team of professionals that specialize in IRS Dispute Resolution and Collections work will help:

  1. Ensure optimal results. An experienced team can get the right payment plan established. A good team can also mean the difference between an accepted settlement agreement or one that is rejected.
  2. Meet collections deadlines. There is limited time provided by the IRS in collections due process matters. When those deadlines are disregarded, the IRS moves forward with their collections process, resulting in levies and other collections measures. An experienced team knows how to manage the collection deadlines.
  3. Negotiate your case. An IRS collections agent’s job is to collect money as quickly and efficiently as possible. Therefore, they appreciate (and you benefit from) working with an experienced team who knows IRS rules and can negotiate them on your behalf.
  4. Reduce the cost. Working with an experienced team helps to provide a more timely resolution. The sooner a case gets resolved, the less it will cost you.

If you, or someone you know, are struggling with a tax matter that just doesn’t seem to go away, contact our IRS Dispute Resolutions and Collections team to get some information and relief. Our team of tax collection experts include CPAs, attorneys and enrolled agents, most of whom have worked in the IRS. We can work with your CPA to get your taxes up to date and negotiate the right resolution for your tax debt, so you can have peace of mind.

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