IRS and Alabama Department of Revenue
Income Tax Representation and Advisory Services
Many taxpayers will have an issue with the income tax authorities at some point in their lives. These issues may arise from an IRS or State DOR notice or audit, or from not filing returns or paying taxes when due. I offer assistance to taxpayers in these areas with a free telephone consultation.
Your tax returns may be selected for audit by the IRS or even the State Department of Revenue. If you have been notified that your returns have been selected for examination, you should contact a competent tax advisor to assist you with the examination of your tax returns and information necessary to support them. Most tax advisors will perform a review of your returns prior to your examination to understand any issues that will be faced in the audit. In most cases there is something in your tax return that caused you to be audited.
IRS matching programs have become more sophisticated resulting in notices to taxpayers for non-matching information. Even if your return is correct, if proper reporting of specific types of income do not match the reporting form, you will receive a notice from AUR. It is important to respond promptly and with the correct documentation so the issue is resolved quickly for you and the IRS.
If you owe income taxes, you will have to respond to the IRS or DOR by paying the tax or disputing the liability. If you cannot pay, alternatives are available such as installment arrangements or an offer in compromise (OIC). The important thing is to communicate your situation to the IRS or State before a lien is filed or levy placed on your earnings and assets. Small business owners can face situations where their business cannot survive due to the impact of collection actions on your credit worthiness or ability to operate your business. A tax expert representative with power of attorney will be a valuable asset providing expertise and experience working out payment alternatives.
There is one guaranteed way to cause yourself heartache and a visit from the IRS, and that is a willful disregard for your income tax filing requirements. It takes about three years for the IRS to catch up to non-filers and in some cases much sooner. Even if you have not filed returns for several years, the IRS will generally accept your tax returns late, and in almost all cases you will owe less than what the IRS calculated for you.
If you would like to discuss your situation, please call for a free consultation with a CPA.