Tax Reduction, Tax Debt Relief and More: How IRS Controversy Can Help

Are you struggling with back taxes and in need of tax debt relief? Is the amount of back taxes owed enough that you have received a notice from the IRS? Are you being audited by the IRS? Are you facing current IRS penalties and owed interest? If so, you may need the help of an expert for tax debt relief and working through issues with the IRS.

Have IRS issues or back taxes owed?

What is IRS controversy?
IRS controversy professionals specialize in addressing issues and areas of concern with the IRS. These range from individual or business tax return issues, aiding with an IRS examination or appealing or settling in tax court.

Tax controversy professionals also help with calculation of federal tax interest and abatement, tax dispute consulting and international and domestic tax penalties.

Learn more about the basics of IRS controversy.

What are potential IRS audit risk areas?
Without proper due diligence, business owners can find themselves in sticky situations. Compliance is important in every aspect of business, but it’s especially important to pay attention to the current issues that the IRS has in focus.

The items below provide a checklist to help identify whether you, or your business, might be at risk for one—or more—of the IRS’ high probability audit situations for this year.

☐ Do you make charitable gifts through a donor advised fund or conservation easement?
IP monetization/royalty transactions, easements and donor advised fund transactions are under high IRS scrutiny.

☐ Are you planning to change your compensation structure in light of tax reform law changes?
The IRS position for reasonable compensation is reasonable replacement, which can complicate changes to wages, guaranteed partner payments or compensation from S corporations.

☐ Do you have a transfer pricing policy in place, foreign assets or operations?
International transactions are of special interest to the IRS. Returns not filed properly are subject to significant penalties, but requesting penalty relief and filing unfiled returns can alleviate potential penalties.

☐ Do you have a captive insurance company?
Recent U.S. Tax Court cases have emboldened IRS auditors to treat all 831(b) captives as shams.

☐ Do you have more than $10 million in assets?
High net worth individuals are easy targets for an IRS audit and probably will be audited.

☐ Do you have a self-directed IRA?
The IRS is examining SDIRAs to determine if they have violated the unrelated business income tax rules.

☐ Have you recently completed a business or asset valuation or a study?
The IRS will scrutinize the values determined in transactions, or require a contemporaneous study.

How can I get help with my tax debt?
Identifying key areas where you may be prone to an IRS audit is only the first step. It only gets more complicated once an IRS case begins.

There is a tax relief program to help you with tax debt relief and back taxes owed. Known as the Fresh Start Initiative, the program gives taxpayers with first-time tax debt a second chance.

The Fresh Start Program can help you get tax debt relief.

Who can I trust to handle back taxes owed?
A common issue faced by taxpayers dealing with delinquent taxes is being unsure of who to trust. After all, tax debt relief is top of mind for many who owe back taxes. While there are tax relief programs in play, working with the IRS can get complicated quickly. Working alongside a trained tax controversy professional can give you the tax relief help you need.

Should you negotiate with the IRS on your own? We answer this and other common questions in our series on IRS controversy.

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.

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.

In need of back taxes help or tax debt relief? IRS Controversy and Dispute Resolution may be right for you.

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