IRS Audit Representation
You open the mail and a letter arrives from the IRS. An audit! The IRS selection process for auditing the taxpayer is normally based on tax items that are out of the norm or do not match the records they have. At this point you can’t turn back the clock and redo the return; you have to face the auditor. But are you experienced to do this? Do you want to do this?
If you hire Padgett as your audit representative, we will:
- Review all tax documents.
- Clearly explain the errors made or the compliance requirements.
- Communicate with the IRS regarding your rights.
- Prepare any documents required for the audit.
- Represent you at the audit – you do not have to attend.
- Keep you well-informed as to what is happening during the audit process.
- Strategize how to work with the IRS to minimize the taxes, interest and penalties owed.
If you have received an IRS audit notice, time is of the essence. Contact Padgett today.
IRS Liens and Levies
Not paying your income, trust, corporate or other IRS taxes is serious. And the IRS resorts to actions that protect their ability to collect the taxes using liens and levies. Have you received a notice that reads “NOTICE OF FEDERAL TAX LIEN?”
What will happen?
What is a Lien?
A lien is a means to secure a debtors interest in the event of default on payment of the debt. Most people already have at least one lien; a lien put on your home by the bank that has financed your mortgage. All liens become public record.
If you now have a tax lien on your personal assets (maybe business assets), historically you ignored many IRS payment notices and have outstanding taxes owed. And the taxes have to be paid in full by a due date.
In the future, the IRS will then levy your assets. You will receive a notice which reads:
“NOTICE OF INTENT TO SEIZE (LEVY) YOUR PROPERTY OR RIGHTS TO PROPERTY” – OR- “CALL IMMEDIATELY TO PREVENT PROPERTY LOSS. FINAL NOTICE OF INTENT TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING.”
At this point you are facing a Levy of assets. A Levy means the IRS is preparing to notify banks to send any money they have received on your behalf to them. Confiscations of other assets include trucks, vehicles, and anything with a resale value on the market. If you own a business, the IRS will also contact customers and vendors and have “your money” sent to them instead.
The list available for confiscation is:
- Bank Accounts
- Wages (A Wage Levy may be implemented.)
- Retirement Accounts
- Dividend or Interest Income
- Rental Income
- Cash value in a Life Insurance Policy
- Property such as a building, home, or car
But, again, to have the IRS resort to this action, you have ignored tax notices, lien notices and possibly ignored a Revenue Officer that came to your door. Do you want the IRS to walk away with your assets and leave you with little to live on?
Liens and levies are time-sensitive, which means specific dates for action are referred to in the notices. We must act before the deadlines.
How can we assist you when you receive a lien or levy notice?
- We will clearly explain to you what happened and what will happen.
- We will analyze historically the basis for the lien or levy. Can we find anywhere that the IRS may be wrong or have incorrect information? Are they missing returns?
- We will contact the IRS and stop the levy and request “time” to resolve the issue. Such resolutions include the discussion at IRS Tax Payment Plans. We will meet with a Revenue Officer if required.
We will do everything we can to allow you to live as normal as you can under these circumstances.
If you are reading this section on Seizures, you have received many liens, levies from the IRS and now, due to non-payment, and no payment plan in place, the IRS is preparing to walk in and take your assets, or padlock your business door. They are preparing to force you to sell your home so they will be paid. They have levied bank accounts, looked at your receivables, customer base and exhausted all options. The IRS says “Enough!” They decide to seize your assets. They have to STOP the tax debt from growing!
Can the IRS legally seize your business’ property; your personal and business vehicles, wipe out the cash balance in your business checking account, your personal account. Yes.
Due to U.S. Congressional laws, we have to pay taxes and the IRS is the administrative arm of the government to collect those taxes. They will recover taxes owed, no matter how they have to do it.
If you do not pay this debt, the IRS will levy your property and accounts, seize assets (from your small business and possibly your personal assets) until their debt, penalties and interest are paid.
If you have had NO REPRESENTATION to this point and you are facing seizure, call Christy to discuss what your options may be.
It may be too late but she can advise you on your options. It may be possible to stop the seizure and work on a payment plan with the IRS. She will advise you on what your best options may be.
IRS Tax Payment Plans
We hear many reasons why taxes are not paid; why you could not or did not file your 1040s for the last five tax years. Our job is not to judge what you did; our job is to go deeper into situations surrounding the decision to not file. Is this relevant to the course we take in working out a settlement with the IRS?
There are different payment strategies if you owe $10,000 or under, less than $25,000 and over $50,000. Will the IRS allow payment in two or six years? Is an Offer-In-Compromise realistic?
Work with a Padgett Enrolled Agent to:
- Communicate with the IRS on your behalf.
- Arrange an Installment Agreement with the IRS that allows you to maintain your normal standard of living.
- Discuss other payments options rather than the IRS Payment Plans which are at high rates of interest with penalties. Is a credit line, credit card or a loan possible?
The IRS will require many forms to be completed depending on the amount owed. Completion of the forms correctly is imperative. Padgett will complete them for you.
Do you really want to talk to the IRS? Do you want to try to understand what they are telling you to do? Hire a Padgett professional. We work for you!