Special Situations
- Extensions
- IRS Audits
- Appeals
- Back Taxes
- Tax Liens & Levies
- Offer in Compromise
- Refund Claims
- Tax Court
- Will You Go to Jail?
We've been helping with IRS and state income tax problems for decades. We love special challenges. We even find ourselves fielding inquiries from other CPA firms who contact us for advice. We have the education, skill, and experience to competently handle virtually any special tax problem you may be having, including the following:
Extensions
No problem! If you've already determined that you'll receive a refund from Uncle Sam when you finally file your tax return, then you've got it made. The IRS doesn't mind holding your refund (without paying you any interest) for an additional few months while you get your "stuff" together. So, simply file Form 4868 by the April 15 deadline and you're in business.
But what if you owe money? Form 4868 only extends the time to file your return. It does not extend the time to pay your taxes. The IRS might claim that the extension won't be valid unless you make full payment with Form 4868, but that's not exactly the whole truth. The IRS now has a special toll-free phone line for extension requests: 1-888-796-1074. If you call, be prepared to use Form 4868 as a worksheet and have a copy of your tax return in front of you. You might want to give it a try rather than going through the time (and expense) of paper filing your extension request. We can help you if you get stuck.
Audits
IRS audits are not as common as they used to be and we estimate that no more than one out of a hundred persons will find themselves subjected to an IRS audit. And no, the IRS isn’t all that bad. Though their collection division can appear arbitrary and unfair, there are very few other forums where the rights of the accused are given so many safeguards and protections. It is difficult to predict the outcome of any audit in advance. However, the one thing you can virtually count on is that you will get a fair hearing at the IRS. We view our role as keeping our clients out of trouble. If or when you do get into a tax jam it is our job to get you out of it and to help cut your losses. So do you have to worry about a tax audit? If you are an average taxpayer, then the answer is probably not. If you should become involved in a tax controversy or if you need help with a tax audit or tax problem call us immediately.
Appeals
Taxpayers have broad appeal rights within IRS. You can appeal almost anything, even IRS collection decisions. The key is to act quickly because you generally only have 30 days to file your appeal. So call right away if you need help with an IRS, Colorado State, or other tax appeal. It is the policy of IRS to give their best settlement offer at the appeal stage. Thus, the appeal process offers an excellent opportunity to settle your case without the need to go to court. Through years of experience, we have found appeals officers to be fair and reasonable. Many times they seem willing to accept settlement of tax cases. So unless you have an absurd case or a prickly personality, you can usually get a fair hearing with an IRS appeals officer. You may also want to embrace the appeals process because it may prove a less costly alternative to tax court.
Back Taxes
Generally speaking, the Internal Revenue Service usually does not go back beyond ten years. However, there are cases where the IRS can go back as far as they want. This might occur when the IRS proves tax fraud or when a taxpayer has been out of the country. Surprisingly, many delinquent clients are entitled to refunds from the IRS. Unfortunately, if IRS owes you a refund you can only go back 3 years. If you haven't filed in a while, do not worry. We've seen it all before and we can help you come clean and possibly work out a deal with IRS.
Tax Liens & Levies
These can be the most difficult and challenging types of assignments we are asked to handle. Although taxpayers have been granted substantial new appeal rights with regard to many IRS collection actions, you must file your appeal within 30 days. Thus, it is imperative that you contact us the moment you receive a notice of lien, or any other communication from the IRS collection department.
Offer in Compromise
The IRS has been mandated to liberalize their Offer in Compromise Program. This program is for taxpayers who simply cannot afford to pay all their taxes, or for some other valid reason, want to settle their tax bills for less than the full amount. The taxpayer bears the burden of establishing the grounds for a potential settlement and has no legal entitlement to have any tax liability settled through an Offer in Compromise. Any submitted offer must reflect the taxpayer's maximum capacity to pay. There are additional conditions and the paperwork can be daunting, but if you can't pay all your taxes an Offer in Compromise should be considered.
Refund Claims
Usually the tax payer has to file a claim to get a tax refund from IRS. If you made a mistake on a prior year's forms, we can file amended returns to claim your refunds. Unfortunately, if IRS owes you a refund you can only go back 3 years.
Tax Court
We usually settle our cases before they go to the US Tax Court because of the costs and hazards of litigation. However, sometimes you have no choice.
Am I Going to Jail?
We actually do hear this question at least once during each tax season. But you can exhale and relax. Even people who fail to file their returns for years rarely face criminal prosecution. Perhaps the primary reason for this is because it is difficult to pay off a tax lien when you are locked up. The system tries to promote a fair and just process to those who truly want to make amends.
