When Do I Need To Seek IRS Tax Resolution?

This is one of those questions you hope you never have to ask. However, since taxes are an unavoidable part of life and, at some point, most of us will have to deal with the IRS in some capacity, it may be prudent to understand when it would be ideal to seek tax resolution assistance. Typically, here are the situations where IRS tax resolution relief is needed:

• The IRS is acting toward you for taxes they have assessed against you.
• You have unfiled returns on where you would owe taxes on. Failing to file taxes can be classified as a federal crime punishable as a misdemeanor or felony (26 U.S. Code § 7203 – Willful failure to file a return, supply information, or pay tax).
• The IRS has just assessed taxes on you.
• You owe back taxes, and the IRS has not come after you yet. In time they will.

If you are dealing with any of these scenarios without having a tax resolution plan affording you the best course of action based on your circumstances, you could, unfortunately, make a bad situation worse.

Why Should I Use a Tax Resolution Firm?

Once your taxes have been assessed, and if left unpaid, the IRS will enforce collections which involve charging you at a high monthly interest rate, assigning the highest allowable penalties and fees, and could aim to go after equity you have in assets, garnish wages, levy bank accounts, deny the use of passport, and even seek a judgment to foreclose on your property. You can avert such actions by enlisting professional tax help to employ various alternative tax resolution options. Tax resolution professionals deal directly with the IRS to obtain a workable solution to your situation. Tax resolution is a very specialized field requiring unique training and skill sets.

Introducing Harmon Tax Resolution, LLC – a professional, trusted, experienced BBB A+ rated IRS Tax Resolution Firm geared for only one thing – solving IRS tax problems. Here a multi-licensed tax attorney-CPA-IRS Enrolled Agent will thoroughly review what the IRS alleges you owe, establish the merits of the IRS’s position, and analyze your situation to determine which of the many IRS programs you may be eligible for. There is a solution to every IRS tax problem. Call today at 772-418-0949 or complete an online inquiry for a free consultation on how your tax situation can be addressed best.

Will the IRS Provide Help with My Outstanding Taxes?

The IRS’s mission is to collect from you as much as possible. Therefore, you cannot depend on the IRS for your best interest. Even if the IRS mentions any of its tax relief programs, you cannot rely on them to help select the most optimal one for your situation or provide guidance on navigating within a plan to obtain the best results fully. Dealing only with the IRS may result in you paying significantly more taxes, penalties, and interest. You may even inadvertently provide additional information to the IRS, worsening your situation. In addition, the IRS will not try to abate or lessen any penalties associated with your account. To the IRS, tax collection and enforcement are its primary functions, whereas getting you to arrive at the best outcome is not part of their protocol.

What are the Risks of Resolving My IRS Tax Problem on My Own?

Unless you thoroughly understand tax law and deal with the IRS, gaining experience in this realm by going alone could be a very costly and aggravating experience. A good question is whether your approach is the best one available. Would an IRS tax resolution expert come to the same conclusion you have? If you are getting some tax advice from someone, does that person have a strong background in dealing with the IRS? Many tax professionals can help prevent you from having to deal with the IRS by ensuring your tax returns are prepared correctly and offering tax advice; however, unless they have specific experience dealing with the IRS directly, they may not be able to guide you accurately as a tax resolution expert would when it comes to resolving an IRS tax controversy.

Speaking of IRS tax resolution experts, with Harmon Tax Resolution, LLC, you will deal directly with an IRS battle-tested tax resolution expert, Will Harmon, who happens to be a multi-licensed Fl tax attorney-CPA-IRS Enrolled Agent, ensuring complete representation. He will thoroughly review your situation, represent your rights to IRS, and establish a resolution plan enabling you to pay the least amount available within the optimal terms allowed under IRS administrative law. Call him for a free consultation at 772-418-0949 or complete the online inquiry form.

His goal is simple: providing a way to hold on to more of your resources instead of handing them over to the IRS. Investing in a trusted tax professional who knows the ins and outs of the IRS is the best way for you to hold onto your hard-earned resources. Unless you fully understand the IRS tax provisions of the Internal Revenue Code and the Internal Revenue Manual, know how to protect your taxpayer legal rights properly, and have experience advocating within the various levels of IRS bureaucracy, your chances of getting the best outcome are not very good.

To help provide a better understanding of the magnitude of the IRS’s overall tax processes, below is a depiction of the inner workings of the IRS. As you can see, navigating the IRS is not a simple walk in the park. Mistakes can be costly. Having skilled tax representation will help ensure you properly navigate the IRS system.

Every IRS Tax Problem Has a Solution

Every situation is unique and requires a detailed analysis and investigation to determine the correct action. Regardless of your situation, your resolution starting point will be within the taxpayer roadmap. Most IRS tax problems fall under these scenarios:

• There are ongoing collection efforts by the IRS for back taxes to which you have not responded, and now the IRS is possibly taking enhanced collection efforts against you such as enacting liens, performing bank account levies, making wage garnishments, revoking US passports, and even foreclosing on properties.
• You have unfiled returns or owe back taxes, and IRS may not have contacted you yet.
• The IRS has audited prior tax returns resulting in additional taxes and penalties.

Each one of these situations will place you in a spot within the IRS road map. Knowing where you are starting from is essential; however, that’s only one part of the solution because many other factors are needed to determine the best resolution outcome for your situation. A thorough investigation will need to be done to obtain the information required for the best resolution determination.

Harmon Tax Resolution Can Defend You Against IRS Aggressive Collections by Creating a Tailored Resolution Plan to Produce the Most Optimal Results Possible.

Can you imagine the futility of giving someone directions without knowing where they currently are, what got them there, and what resources they have to proceed forward? Accepting a tax resolution plan where no thorough investigation has been done could be an act of futility. Unfortunately, there are many tax mill firms out there who, without taking these investigative steps, will immediately assign a “cookie cutter” resolution option, which may not be best for your situation and up costing you considerably. To help you properly navigate the complex IRS road map, the tax resolution professional must obtain complete information about your case by thoroughly investigating your and IRS records.

Even though there are many IRS options to consider, the goal should always be to find the ideal one for your situation. Ideally, it would be best if you were afforded explanations of why one plan is better for your situation than another. This involves thoroughly analyzing the facts and circumstances surrounding your case BEFORE any resolution plans are compared and presented. At Harmon Tax Resolution, a thorough analysis of the facts and circumstances of your case will enable you to thoroughly explain why a resolution plan should be selected from other options.

There is a solution to every IRS tax problem. Getting to the right solution is what counts. By having multi-licensed tax professional research your case from all angles, you can ensure not to have items overlooked because many tax resolution cases often require expert knowledge across various disciplines in realms of law, tax expertise, accounting, and auditing to arrive at the best outcome. At Harmon Tax Resolution, you are afforded this to have a sense of security and peace of mind. As we have done for others, we can do the same for you!

Benefits of Working with the Harmon Tax Resolution

• Have resolved many IRS tax cases.
• Have saved our clients significantly in back taxes.
• From start to finish, you will have a dedicated multi-licensed tax attorney-CPA- IRS Enrolled Agent working on your case to ensure your case gets complete representation available and nothing gets overlooked.
• The fee structure is transparently based on flat fees, so no surprises and payment plans are available.
• Client Attorney Privileged communications along with professional respect and empathy.
• BBB A+ Rated.
• Have many five-star customer reviews.
• Licensed to work in all fifty states of the USA.
• Our initial consultation is always 100% free.

Get Trusted Legal Representation for Dealing with IRS Tax Problems

To ensure that you align yourself with the best possible tax resolution outcome, have an experienced tax professional provide expert guidance to get you there. Call today (772-418-0949), or complete an online inquiry form for a free consultation with experienced IRS Resolution Tax Attorney-CPA-EA, Will Harmon of Harmon Tax Resolution, LLC. He will handle your IRS tax issue so you can put this behind you and do the things that matter most.

For additional information, please see the following blog articles:

• “Tax Attorney vs. CPA vs. IRS EA: Why Not Hire a Three-In-One?”
• “What Should I Do If I Receive and IRS Notice?“
• “When Should I Call a Tax Resolution Firm?“

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Opening your mail only to discover you are on receiving end of an IRS Audit is a daunting experience; however, if you keep your wits about yourself and follow specific steps, the immensity of the ordeal will lessen significantly. Invariably, we all must deal with the IRS at some point.

Here are some steps to follow to help get through an IRS audit engagement.

Step 1: Determine The Reasons for The Audit

The first step is to get an understanding as to why the IRS is auditing you. The IRS audit letter typically details the periods being audited and the type of audit to be performed. There are many reasons the IRS may select a specific tax return for audit; for example, third-party reporting does not match data reported on tax returns or data within the tax returns, such as amounts listed for various income or expense items falling outside the typical industry average. You could have the unfortunate luck of being randomly selected out of the general tax return populous. Although not an all-inclusive list, there is a greater chance of being audited if you find yourself in any of these situations.

1. Make Significant Earnings
   1. Once you cross the $200,000 earnings threshold, your chances of audit increase. Around 50% of the tax returns audited by the IRS have annual earnings of over a million dollars.
2. Run a Cash Heavy Business
   1. IRS targets these types of businesses because, within these types of businesses, there has been a greater propensity for not reporting or under-reporting income to occur.
3. Taking Home Office Deduction
   1. You can take certain deductions if you work exclusively from home and have an area dedicated to your business. Since this can be manipulated, the IRS tends to request verification.
4. Claiming Earned Income Credit (EIC)
   1. EIC reporting has had significant fraudulent reporting; therefore IRS scrutinizes this heavily.
5. Rounding Numbers on Expense Listings
   1. IRS may consider this an indication that actual data is not being used to support the expense.
6. Have Significant Changes in Income or Expenses
   1. IRS may want to understand why and how these changes occurred.
7. Use of Personal Vehicle for Business
   1. Reported vehicle expenses are an area where many discrepancies occur. Be sure to keep records such as mileage logs can calendar entries that indicate the business purpose of the trip.
8. File a Return with Math Errors
   1. These errors generally get caught, flagging your return for audit.
9. Crypto Currency Transactions
   1. There is still considerable standardization needed here, resulting in the IRS making an enhanced effort to get more verification.

Having any of these occurrences does not guarantee that an IRS audit will occur, except the likelihood of one increases. Taking expense deductions and credits you are entitled to and can substantiate with proper record keeping will help reduce the chances of being selected. However, sometimes IRS audits are random, so even with a correctly prepared return that does not contain typical audit flags, you may still receive an IRS notice “requesting” you to explain some items on your tax return. In either case, having detailed records will help tremendously if an audit occurs.

Step 2: Do a Thorough Review of Your Tax Return

Before meeting with your trusted tax professional or an IRS agent, it’s imperative to thoroughly review the tax return being audited and the last several years of prior tax returns to ensure completeness and accuracy. With all the many inputs required to complete a tax return, unintentional mistakes can easily happen, whether during the preparation or e-filing process. Doing a thorough review will help catch any of these mistakes, and you will be better prepared to plan and discuss. The better prepared you become, the less anxiety you will experience during the audit. To help better prepare for the audit, gather proper support for items listed on the tax return, such as bank and credit card statements, receipts, invoices, and 3rd party annual reporting documents such as 1099s. By being prepared in this fashion, the audit will move quicker and with fewer challenges.

Getting Trusted Professional Help

Since dealing with an IRS audit can be extremely stressful and frustrating, it may be highly advantageous to consult with a tax professional, such as a dually licensed Tax Attorney-CPA, who can represent you in front of the IRS while providing the correct course of action. The benefits of employing such a tax professional allow one to leverage the tax professional’s years of experience and expertise in dealing with sophisticated tax situations that the typical taxpayer would not possess.

An experienced tax resolution attorney-CPA will provide, from start to finish, all tax law expertise and proper advocation, along with expert CPA audit guidance, which helps ensure that you will not end up paying more than you must.

What is a Tax Resolution Attorney-CPA-EA?

A tax resolution attorney-CPA-EA is a combined legal, tax, and accounting professional helping individuals and businesses resolve their IRS tax-related issues. Because a tax resolution attorney-CPA-EA has gone through extensive multi-licensing, cross-training, and continued education, tax resolution attorney-CPA-EAs have a more in-depth knowledge of tax law than anyone in the business. Plus, dealing with IRS on a day-to-day basis enables the tax resolution attorney-CPA-EA to properly assess and appropriately address each tax situation, regardless of complexity, with IRS representatives ensuring the engagement proceeds in the best manner possible.

A multi-licensed tax attorney-CPA-EA thoroughly understands tax regulations, laws, accounting, and audit procedures and is there to provide acute guidance and complete representation to taxpayers across the spectrum of varying IRS issues. A tax resolution could include preparing unfiled returns, finding the best resolution for back tax debt, addressing an IRS audit, properly dealing with an IRS tax lien or levy, and appealing an IRS position. Tax resolution attorney-CPA-EAs work on your behalf to negotiate IRS settlements or payment plans. They can also provide expert tax planning strategies to help you prevent future IRS tax issues. Often tax resolution cases involve various disciplines to address the problem adequately. By having a three-in-one tax professional work on your case, you are ensuring nothing gets overlooked.

Step 3: Immediately Respond to the Audit Notice

Response timing to an IRS audit notice is critical. The IRS generally gives you thirty days to respond but verify by locating the “Respond by Date” listed within the notice. The timely response sets a good tone with the IRS and avoids additional interest and penalties getting tacked on. Untimely responses can also trigger a more aggressive approach from the IRS. IRS audits tend to go much smoother when timeliness occurs.

Step 4: Show Up at the IRS Audit Appointment

If attendance is mandatory for your audit appointment, whether in person or via video conference, it is essential to your case to show up on time and well prepared. Proper time scheduling will help alleviate significant stress and enhance your ability to field questions. The whole process goes much smoother this way and helps avoid additional escalation.

Just like prompt attendance facilitates a better speedier audit, so would ensuring you have acquired all necessary documents. Starting on this as early as possible is the best way to handle this. In addition, if more time is needed to acquire documents, you can request additional time by calling the number listed on your audit notice. Waiting until the last minute to make such a request could result in it getting denied. Importantly, giving yourself enough time to review your data may prove your position was correct and the IRS was wrong. The last thing anyone wants to pay is a tax they should not owe.

Be Straight Forward with the IRS Auditor

Transparency goes a long way when working with your IRS agent. Like other government enforcement agencies, the IRS agent’s primary focus is maintaining guidelines, regulations, and laws. Mistruths will often cause additional audit requirements added to the audit, delays, and combativeness from IRS agents. Providing mistruths could lead to a criminal investigation. Being transparent is a best practice and will make the audit much smoother than being untruthful or evasive.

Maintain Good Financial Records

Good financial record-keeping is an excellent way to avert many tax problems. However, even with proper financial records, you can still incur an IRS audit due to many factors previously listed. Incorporating solid financial recordings, especially ensuring banking records match reports correctly, will help establish your position well and provide significant evidence to counter underreporting or misappropriation of funds.

The greater your personal or business income, the greater the possibility of being audited by the IRS. A higher income often involves more transactions, resulting in complex tracking challenges, hence the need for solid financial reporting. If you are self-employed or own a business with inherent IRS audit risk factors, keeping good business records can alleviate audit headaches and could even prevent an audit from occurring. When it comes to financial record keeping, it’s essential to ensure you are employing enough resources for this task, just like hiring a multi-licensed tax attorney will provide adequate coverage in all facets of an IRS audit. There is nothing like having a knowledgeable legal tax professional who also happens to have the audit and financial reporting background of a CPA.

Make Sure to Know Your Rights!

If you are being audited, know your rights throughout the audit, including the right to appeal the auditor’s findings and the right to representation. Employing your legal rights can significantly determine the outcome.

Unfortunately, unless you are dealing with the IRS regularly, along with having years of schooling and specific training, you most likely will not have a sufficient understanding of your rights and responsibilities relating to IRS actions, such as an audit. It may be prudent to employ an experienced tax professional capable of navigating the extreme complexities of dealing with the IRS. Dually licensed Tax attorneys-CPAs have significant experience and the ability to see your situation from every angle to ensure the best solution will be employed to protect your and your family’s rights. IRS Taxpayer Rights and IRS Publication.

Can I Appeal the Audit Findings?

Yes, the IRS auditor’s decisions are not unchangeable; you can appeal the decision if it is incorrect or unjustifiable.

Sadly, taxpayers’ right to appeal adverse decisions is not always readily known. IRS is not in the habit of promoting this because it could inhibit their ability to collect as much money as possible. In addition, if you are not aware of your appeal rights early on, it can be challenging to engage in an appeal. If you are going alone at this without a seasoned tax professional, it can become pretty convoluted since you are dealing with timing issues along with multiple form preparations. In addition, without a strong tax background, you may miss incorrect audit findings altogether. There have been many instances where incorrect audit findings go unchallenged, resulting in the taxpayer footing a large wrong tax debt causing significant harm to themselves and their families.

In addition, you also have the option to seek audit reconsideration if new information becomes available or a ruling has an incorrect application.

Trusted tax resolution professionals have gone through the IRS audit and appeals process many times, therefore, can do so for you efficiently and effectively. Working with them, they will address many of the nuances involved, so you don’t have to.

Step 5: Get Trusted Representation by Calling Will Harmon Now! 772-418-0949

​Being selected for an IRS audit can be a stressful experience, but it is essential to remain relaxed and take prudent steps to address the situation before it is too late. Employing professional tax advice to solidify and enact correct application audit rules and procedures and keeping meticulous records will provide the best path for the most successful audit outcome.

You are not alone if you still feel nervous about taking on the IRS since this is a typical reaction of most taxpayers going through a similar experience. Employing a trusted attorney-CPA-EA to help you in your IRS tax audit case can significantly increase your chances of success. Will Harmon, one of the best tax resolution attorneys-CPA-EAs in the business, can help you with your IRS issue. If you want to be sure of not overpaying the IRS and getting control back, give tax attorney CPA EA Will Harmon a free consultation call today or complete the online questionnaire and let him get you back on track to tax compliance!

For additional information, please see the following blog articles:

• “Help with Your IRS Tax Audit“

• “The Ins and Outs About IRS Audit Reconsideration“

• “When Should I Call A Tax Resolution Firm?“

The IRS cannot engage in collections activities against you without an assessed tax in place first. Before an IRS tax assessment occurs, you, the taxpayer, have a right to be informed of any pending assessment. To facilitate your awareness of a pending IRS tax assessment, the IRS has a statutory system that issues you a Notice of Deficiency delivered by certified or registered mail. The Statutory Notice of Deficiency details what is being assessed and how it was calculated.

The IRS Statutory Notice of Deficiency is a vital due process function that plays a critical role in many IRS activities, such as appeals and tax litigation, and is a significant catalyst for enabling IRS collection activities to engage. If you receive an IRS Statutory Notice of Deficiency, it is critical to immediately assess and take action, especially while all appeal and rebuttal venues remain at your disposal. Getting a tax professional to help you initially may be your best option.

What is an IRS Statutory Notice of Deficiency?

A Statutory Notice of Deficiency is a legal determination by the IRS of a taxpayer’s tax deficiency. It is an official written claim that a taxpayer owes additional income tax (and additional penalties and interest). It is issued when the IRS proposes a change to a tax return because they found that the information reported on a return does not match their records. The IRS’s requirement to issue a notice of deficiency is stated in Internal Revenue Sections 6212 and 6213. These sections promulgate the rule that unless the IRS sends out a timely and valid notice of deficiency, any tax liability assessed by the IRS is invalid.

What Triggers the IRS to Issue a Notice of Deficiency?

External parties, such as employers, financial institutions, and brokers, report taxable transitions to the IRS. For example, when an employer issues a 1099-NEC form to a contractor, the employer also issues this information to the IRS. The same generally holds for when a broker issues you a 1099-B which reflects investment activities, it also has issued this information to the IRS. When these records are either missing or do not match what has been reported in your tax return, IRS will initiate a correction and or addition, which gets listed within the deficiency notice. To help avoid having the IRS make adjustments to your tax return, it’s crucial to double-check for any 3^rd party omissions or misreporting of your tax return before filing.

The IRS Statutory Notice of Deficiency Comes in What Forms?

The official name for a Statutory Notice of Deficiency is the IRS Notice CP2319A (or CP2319N): Notice of Deficiency and Increase in Tax. A Statutory Notice of Deficiency is often called an IRS 90-Day Letter, a Notice of Deficiency, or a Statutory Notice.

Depending up how the IRS determines the tax deficiency will determine whether a CP3219A Notice or a CP3291N Notice is used. Here are some clarifications the IRS uses to determine which form is applicable to use:

• CP3291N If the IRS did not receive your tax return and then prepared your return based on wages (W2s) and other income (1099s) reported by third parties, the IRS will issue the CP3291N. When the IRS prepares your tax return, this is referred to as a Substitute For Return (SFR). Although it may seem convenient that the IRS would do this for you, the outcome will not be in your favor since the IRS will not include any allowable credits or deductions during the processing of your return resulting in a higher tax than if you had it prepared. There are additional drawbacks to taxpayers when SFR returns are prepared. Also, the IRS will not prepare an SFR if you are due a refund. For more information, please see this blog, “The IRS May Prepare a Substitute for Return in Place of an Unfiled Tax Return“
• CP3219A If the IRS receives information that is different from what you reported on your tax return, the IRS will issue this notice. The change may result in an increase or decrease in tax. An omission of a form listed on your tax return will trigger this notice type.

What Information Is Provided within an IRS Statutory Notice of Deficiency?

The notice will provide the applicable tax year in question and the amounts of the proposed adjustments. There will be a listing portraying how the amounts were calculated. It is essential to verify the accuracy and validity of any proposed adjustments. It often comes down to providing missing information that could clear everything up. For example, if you were to receive a notice that states you owed taxes from a capital gain from the sale of your home, which was not reported on your tax return. The IRS had a 1099S which lists the amount of the proceeds from the home sale, as reported by the broker; however, it did not either list the basis of the property or any potential capital gain exclusion amounts you may be entitled to. Now, you are faced with a tax debt, penalties, and interest, none of which you would owe if correct information were provided.

In addition, there may be an accompanying IRS Form 5564, Notice of Deficiency Waiver. If you agree with the tax amounts listed within the deficiency notice, IRS provides this form for you to sign off on and send to IRS. Both spouses must sign if the deficiency notice is for a jointly filed return. Most importantly, do not sign this form if you disagree with the Notice of Deficiency! Make sure to understand what is being assessed. Just like in the example mentioned, there could be a solution to alter the outcome significantly. You have options to appeal! More on that later in this article.

When Is the IRS Not Required to Issue a Statutory Notice of Deficiency?

The IRS is not required to issue a Statutory Notice of Deficiencies under the following circumstances:

• When you file your tax return, the amount listed on the tax return is assessed by you; therefore, the IRS does not have to issue a Notice of Deficiency.
• When the IRS issues specific reportable transactional penalties such as Failure to File Penalty, Failure to Pay Penalty, and Trust Fund Recovery Penalty, among others.
• An IRS correction of a math error is where the IRS determines a tax deficiency resulting from a clear mathematical or clerical error reported on your tax return and then makes the correction without sending a deficiency notice. The IRS still has to notify you of the mathematical or clerical changes. If a taxpayer contests a math error notice within 60 days, IRC § 6213(b)(2)(A) provides that the IRS must abate the assessment. If the IRS abates the assessment, it must follow deficiency procedures before reassessing the tax. Taxpayers who do not contest a math error notice within 60 days lose the right to do so in court before paying. The IRS can use a Notice of Deficiency route for clerical and mathematical errors if it chooses to.

How Long Can the IRS Take to Issue a Statutory Notice of Deficiency?

The IRS can typically only issue a Statutory Notice of Deficiency during a tax assessment period for a particular tax. The tax assessment period the IRS uses is based of the Assessment Statute Expiration Date (ASED). The ASED occurs at the end of the period when the IRS can assess tax concerning a particular tax year. The ASED is calculated on the basis that an assessment of tax must be made within three years from the received date of an original tax return or three years from the due date of the original return, whichever is later. However, there is no assessment period if no tax return was filed or a fraudulent tax return was filed.

The three-year assessment period can be extended by:

• You request a Collection Due Process Hearing.
• You file a Bankruptcy Petition.
• You have applied for an Offer in Compromise.
• If you sign a waiver and consent to extend the assessment period (by signing Form 870, Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Overpayment) (this is called a “Notice of Deficiency Waiver “).

If you have significantly understated the tax on a return, the assessment period can be extended from three to six years.

How Should I Respond to an IRS Notice of Deficiency?

You have several options for responding to an IRS Notice of Deficiency. These options include:

1. Pay the tax in the notice and close the matter.
2. Pay the tax in the notice and submit a refund claim.
3. File an offer in compromise.
4. Submit a petition with the U.S. Tax Court.
5. Petition the IRS to withdraw or rescind the notice of deficiency.

The IRS Statutory Notice of Deficiency, also known as the 90-Day Letter, gives you 90 days from the date listed on the notice to file a petition with the U.S. Tax Court.

It’s important to note that the 90 days begins as of the date listed on the notice, which represents when it was mailed and not the day you received it in your mailbox. If you petition for tax court, you must do so within 90 days of the notice date.

The 90 days are extended to 150 days if your address is outside the United States.

What Happens If I Did Not Receive My IRS Notice of Deficiency?

The IRS must send a statutory notice of deficiency to a taxpayer’s last known address by certified or registered mail. The last known address is generally the address that appears on your most recently filed and properly processed tax return unless the IRS is given clear and concise notification of a different

The courts will invalidate the notice if the IRS does not properly Notice of Deficiency.

For my IRS Deficiency Notice, Who Can File a Petition to Go to Tax Court?

You can file the tax court petition if you are listed on the Deficiency Notice.

What Happens When I File a Tax Court Petition?

Once the U.S. Tax Court receives your court petition, they will notify the IRS of your response to the IRS Notice of Deficiency. The IRS will place a hold on the assessment case and is prevented from issuing additional assessments for the same tax and period.

The IRS counsel will then file an Answer to your petition with the U.S. Tax Court. Often your case will get forwarded to the IRS Office of Appeals. If the case can be solved without going to tax court, the IRS will review the case and schedule a conference with you. The conferences are informal and are conducted by correspondence, telephone, video, or in-person conference.

On average, the IRS settles 70% of cases that go to appeals. Filing for U.S. Tax Court can have significant advantages. Knowing your taxpayer rights and the relative’s time frames to enact these rights is imperative. Do not let your rights expire do to non-action!

There may be some other settlement options available.

For additional information, please refer to the following blogs:

• “The Ins & Outs of Audit Reconsideration“
• “When You Can Pursue a Collection Due Process Hearing“
• “Appealing IRS Tax Determinations“
• “What Should I Do If I Receive an IRS Notice“

Get Trusted Representation For Your IRS Notice of Deficiency

To ensure that you align yourself with the best possible outcome, whether dealing with a challenging IRS Statutory Notice of Deficiency situation or seeking other forms tax debt relief, have an experienced tax attorney-CPA-EA provide the expert guidance to get you there. Call today (772-418-0949), or complete an online inquiry form for a free consultation with experienced IRS Notice of Deficiency Tax Attorney-CPA-EA, Will Harmon of Harmon Tax Resolution, LLC. He will handle your IRS Notice of Deficiency and any other IRS issue so that you can put this behind you and get on to doing the things that matter most.

The answer depends on what your specific tax goals and needs are. Both professional tax attorneys and Certified Public Accountants (CPAs) help with many different types of planning and complicated tax situations; however, each is geared more to help you in certain areas than the other. Selecting the correct professional for the engagement is essential to ensure proper coverage and protection. Understanding the differences in capabilities will help make choosing the right professional type much more straightforward. Let’s start with their backgrounds.

Background of CPAs and Tax Attorneys

Licensed in their respective fields requires tax professionals to undergo extensive training and education and pass a comprehensive state examination.

A tax attorney requires at least seven years of schooling (a four-year bachelor’s degree and a three-year Juris Doctorate issued by a law school). In addition, many tax attorneys pursue a Master of Laws (LLM) in taxation program, which is like a master’s in taxation degree, except with more legal focus. To practice tax law in their respective state, attorneys must pass the Bar Exam, a Multi-state Professional Responsibility Exam, and have proper training.

CPAs require a five-year degree in accountancy, which generally comprises a four-year degree and a one-year master’s degree in accounting-related topics such as taxation, accountancy, and finance. Most tax practitioner CPAs have a master’s in taxation. For licensure, the CPA must pass the CPA examination. The
The CPA exams have parts dedicated to tax and audit where as the bar exam does not cover these areas. Some states require the candidate to obtain a certain amount of industry experience, signed off by a licensed CPA.

Although the Lawyer path requires a seven-year scholastic requirement, there is no mandatory bachelor’s degree type obtainment which could result in only having to undergo three years of legal studies. In contrast, the CPA path requires five years of schooling dedicated to accountancy-related courses. As a result of the mandatory five-year focus on accountancy courses, a CPA will likely have a much broader range of business-oriented capabilities than an attorney but will not have the advocation training that a lawyer acquires during law school.

There are continuing education requirements for each license, where a certain number of educational hours must be met. This ensures that the tax practitioner stays abreast of applicable regulations.

What Situations Are Tax Attorneys or CPAs the Best Suited for?

Even though both professionals have some cross-over capabilities and offer tax advice to reduce your overall tax liability; however, some roles are more suited to one over the other. Ultimately, either should be based on which background covers your issue better.

CPAs generally have a strong background in formulating financial records, budgets, and forecasts, performing day-to-day accounting, preparing tax returns, conducting audit-related activities, and offering tax planning advice regarding the impacts of business developments. When delving into an area that requires solid business transactional astuteness, CPAs are often best to use for this.

In contrast, even though tax attorneys can provide tax strategy advice in many situations, a different benefit of using a tax attorney occurs when engaged in dispute resolution with the IRS. A tax attorney is well-trained to research case law and legal formats to advocate for your behalf properly, whether directly with the IRS or in a tax or district court.

In addition, a tax attorney offers attorney-client privileges for your conversations. You can freely discuss your situation without fear of recrimination by the tax attorney. This is particularly helpful if you are dealing with problems with a possible criminal element.

If you are dealing with an IRS situation involving audit assessments, tax preparations, and financial reporting, hiring a CPA would be the ideal choice. Whereas if your IRS situation has legal concerns or contains areas in dispute, having a tax attorney representing you would be best.

For more information, please read the following blogs:

• “When Should You Hire a Tax Lawyer?“
• “When Should I Hire A Tax Professional?“
• “What to Avoid When Selecting an IRS Tax Resolution Firm” VIDEO

How Will I Know Whether My Tax Issue Requires Using a CPA or a Tax Attorney?

A complete understanding of your tax issue is required to answer this question. This need highlights the importance of starting with a thorough investigation to determine all facets of your tax issues, which will determine what resolution processes will be needed and which types of professionals would be best suited. For more information regarding issue investigation, please see the following blog: “The Importance of Investigating IRS Records in Determining Best IRS Issue Resolution to Use.”

Will Hiring a Dually Licensed Tax Attorney-CPA Provide Better Coverage of my IRS Tax Issue?

Having professional relationships with both professional types seems like an ideal solution to be prepared for various situations which could lend themselves to one over the other. However, there are tax issues where successful resolution may require both skillets. Due to time and fiscal restraints, the taxpayer may not have the luxury of having both types of tax professionals address it. However, there may be an option to ensure proper coverage of your tax issue by simply employing a dually licensed Tax Attorney-CPA.

From the outset of your case, a dually licensed Tax Attorney-CPA will be able to investigate through multiple lenses ensuring all angles of your case are being addressed. As a multi-licensed tax attorney, CPA, IRS Enrolled Agent, and MBA, I, Will Harmon, have had to employ skillsets from all disciplines on many occasions to resolve my client’s IRS tax issues correctly. I look at each problem simultaneously through multiple lenses allowing for a complete perspective and determining a solution that addresses all the pertinent issues. I may not have been as successful without the ability to utilize these combined skillsets.

Please see the blog “Tax Attorney vs. CPA vs. IRS EA: Why Not Hire a Three-In-One?“

Since it requires a complete commitment and much dedication for a professional to obtain dual licensing, you can expect the same commitment will be made towards all facets of your case.

Harmon Tax Resolution, LLC Provides Trusted Representation!

We ensure that you will receive the complete representation your important tax matter deserves. Don’t settle for less! Call Harmon Tax Resolution, LLC at 772-418-0949 or complete our online form for a free consultation on how multi-licensed attorney-CPA-IRS EA, Will Harmon, can help you put your tax issue behind you so that you can move on and enjoy life again.

Resolving tax issues with a tax professional problem solver is similar to getting directions from someone to help get you to a particular destination. In either case, the helper must know your exact location to determine the correct path. However, to achieve a successful tax resolution, the tax professional will need to know how your situation unfolded to where you are at. Your tax issue’s background information, which is its journey to where your issue is now, is needed to determine your case’s path. Notice how the IRS map below portrays specific pathways depending on the issue you are dealing with and what has transpired.

This IRS map portrays the challenges of identifying where to begin and how to traverse the IRS’s roadmap. To properly navigate your tax resolution process, the tax professional must perform an adequate two-part investigation to get your tax matter on the right course.

Beware of any tax firms that provide a solution recommendation without having done an actual two-part investigation. It may be prudent to seek help elsewhere. Let’s say you are amid a challenging, stressful IRS tax issue and come across an ad on late-night tv presented by a “large” national firm that promises they can settle your taxes for pennies on the dollar. The subsequent call to their salesperson, who most likely has a very limited tax background, produces what appears to be a promising remedy – that they can negotiate a settlement with the IRS regarding your tax debt and could do for pennies on the dollar. You should ask yourself if this is legitimate and ideal for your situation. It may be, but without a thorough investigation, it would not be easy to know. In addition, if the national tax firm’s settlement request does not go through, you will have paid a significant fee for this and still owe the IRS the debt with added interest.

Here is a hypothetical example. What if, in your case, since you had not filed a prior tax return, the IRS, in its place, prepared a Substitute For Return (SFR), where the IRS took 3^rd party information it possesses and used it for your tax return? It is important to note that when the IRS does prepare SFR, they do not apply credits or any possible deductions you may warrant, resulting in your getting assessed with a large tax bill compounded with significant penalties and interest. The late-night tv offer by the large national tax firm may seem like a great deal since they are planning to negotiate a settlement of your tax for less than you owe. Regardless of success or failure, this will be a hefty fee. However, if the late-night tv tax firm had offered to investigate before advising the debt settlement action, they would have seen that replacing the SFR with a properly prepared tax return may have been the best and cheaper resolution.

Owing back taxes is not unique; however, your tax resolution journey should be because it’s based on your situation. Therefore, any tax resolution roadmap not based on a discovery of your and the IRS’s transactional history will most likely be incomplete and could be a costly mistake. With tax resolution firm Harmon Tax Resolution, LLC, working on your case, you have ensured all angles of your situation will be addressed to determine the best possible outcome.

What Does a Tax Investigation Involve?

As mentioned above, two sides must be considered: Your transactional history and the IRS’s transactional history. Let’s start with the IRS’s transactional history piece. To get a proper perspective, one must understand the progressive steps the IRS takes and that there are specific resolution actions and defenses the taxpayer can evoke within each step. Time is often of the essence for most available taxpayer defenses, so it is essential to know exactly where you are within the IRS collection scheme. Some of these available defenses are known as “mayonnaise defenses” since they will spoil over time and become unusable.

The typical process the IRS follows in its progressive collection scheme starts with computer-generated letters, which are listed in order of progression below:

• CP 14 The Notice advises that there is tax due, states the amount of tax, including interest and penalties, and requests payment within 21 days.
• CP 501 This Notice is sent because IRS has not received payment or a response to the previous Notice requesting payment on this balance.
• CP 503 This Notice (also referred to as the 2nd Notice) informs you that there is a balance due (money you owe the IRS) on one of your tax accounts and tells you how much you owe when it’s due and how to pay.
• CP 504 This Notice is your Notice of Intent to Levy as required by Internal Revenue Code Section 6331 (d). The final reminder is that the IRS intends to levy wages, bank accounts, or state tax refunds because an unpaid tax balance still exists.

The IRS collection apparatus then moves to Automated Collections Systems, which the notices inform of what potential collections could occur:

• CP90 This Notice informs that the IRS intends to levy certain assets for unpaid taxes. The Notice tells you of your right to a Collection Due Process hearing.
• Letter 11 notice informs that the IRS may move forward with more severe collection activity, such as seizing funds from bank accounts, levying personal assets (cars, automobiles, houses, etc.), and garnishing wages. The IRS may also issue a Notice of Federal Tax Lien.

If a resolution isn’t present, the IRS will escalate the collection efforts by assigning a Revenue Officer (RO) to your case. The RO will send these notices out via certified mail:

• Letter 1058 informs that the IRS may move forward with more severe collection activity, such as seizing funds from bank accounts, levying personal assets (cars, automobiles, houses, etc.), and garnishing wages. The IRS may also issue a Notice of Federal Tax Lien. You have a right to a hearing
• Letter 3172 informs you the IRS filed a notice of tax lien for the unpaid taxes and your right to request appeals consideration within 30 days from the date of the letter.

Each notification type has specific instructions to follow on how to contest/appeal, along with statutory time frames in which to do so. For a correct assessment, the tax professional must know what has transpired within the IRS collection process. In addition to getting ahold of your IRS notices, the tax attorney-CPA needs to be granted access to your IRS account records via IRS form 8821 Tax Information Request or an IRS form 2848 Power of Attorney. The 8821 allows access to designated tax records, whereas 2848 does so and affords fundamental IRS representation rights.

In addition to investigating what actions the IRS has taken, the tax professional needs to investigate your entire tax history to acquire critical information such as to determine the following:

• Compliance: Is the taxpayer compliant with tax filings and estimated payments? IRS will not proceed with a resolution plan if the taxpayer has unfiled returns; six years back is usually the cut-off.
• Collection Statute Expiration Dates (CSED): These dates represent how long the IRS has to enforce collections on tax debts. This information is critical for determining the best resolution option.
• Substitute Filed Returns (SFR): returns prepared by the IRS, which most likely were not done in your favor, and preparing your own may alleviate much of the problem.
  • For more information, see the blog “How to Deal with Back Taxes and What to Do About Unfiled Tax Returns”
• Penalty Abatement eligibility – your transcript will provide essential information for seeking penalty abatements.
  • For more information, see the blog, ”Dealing With IRS Tax Penalties? See If You Qualify for Penalty Abatement”
• Freedom Of Information Act (FIOA) request – will allow tax professionals to obtain other critical information the IRS may have posted about your case. This information could help strengthen the taxpayer’s case.

What Information Do I Need to Give the Tax Attorney to Help Resolve My Tax Issue?

The second part of the investigation involves obtaining complete and verifiable financial information from you, the taxpayer. The IRS uses specific rule-based formats to determine your financial position relative to resolution options. The IRS primarily focuses your equity on assets, liabilities, income, and expenses to determine if you qualify for a particular resolution option. A keen understanding of the IRS metrics is needed for optimal listing; otherwise, you may not qualify even though the potential exists. Having an experienced, knowledgeable tax attorney CPA to assist could help tremendously.

How Does the IRS Internal Revenue Manual Impact My Tax Resolution Case?

The IRS Internal Revenue Manual (IRM) is the primary, official compilation of instructions to staff that relate to the administration and operation of the IRS. The IRM covers most of the procedural aspects of handling IRS matters. In other words, the IRM is the playbook they are supposed to operate within. Understanding these rules will ensure that your rights are protected and that IRS activities align with their standards. In addition, knowing what actions to expect from the IRS is needed for proper case management and is the way to level the playing field. Having a full-time dedicated tax resolution professional who understands the IRM well enough to articulate it back to the IRS, as needed, is an excellent way to ensure adequate representation.

Can I Settle My Tax Debt with the IRS for Pennies on the Dollar?

Getting back to the late-night tax firm pitch about getting the IRS to settle for pennies on the dollar. To clarify, the IRS does not settle for pennies on the dollar unless it feels it cannot collect the entire tax debt. The IRS is the ultimate arbitrator in your tax resolution case. It is up to you to prove your position! The way to do this is through adequately investigating the facts and circumstances surrounding your matter. The investigation will lay out the facts and circumstances surrounding you, which is the best way to decide whether settling for pennies on the dollar is available or if there is another better venue. If the investigation piece is being ignored or skimped upon, most likely, your chances of obtaining ideal resolution options are as well.

When looking for a tax resolution firm to represent you, please request a complete understanding of the processes to be employed. At Harmon Tax Resoution, LLC, these are the typical processes used when successfully addressing a tax problem:

Employing a professional tax resolution firm that thoroughly investigates your tax issue can be the best cost-saving strategy. Since the IRS can use aggressive collection tactics, which will only significantly worsen the situation, a tax resolution action must be needed. A seasoned, experienced tax professional such as a multi-licensed Tax attorney-CPA-IR EA, Will Harmon of Harmon Tax Resolution, LLC, can guide you through every step to ensure you get the best outcome for your situation. The initial consultation is free. You can take control of your situation. Call 772-418-0949 today so that you can sleep well tonight!

Take the First Step to Get the Relief You Deserve! 

What are IRS Tax Relief Services, and when would I choose a Professional Tax Relief Firm?

Situations when it is ideal to request help from a Professional Tax Relief Firm:

• You received a notification from IRS indicating you owe taxes.
• The IRS is acting against you for taxes you owe.
• You have unfiled tax returns resulting in tax liability.

If the IRS is left to its own devices, the IRS will assess any back taxes you may owe them at the highest legal rate possible and charge you the maximum penalties and interest allowable. The IRS will use whatever means it has at its disposal to equate to the highest payment from your income and even includes the equity of your asset in its determination. However, there are ways in which you can challenge the IRS’s decisions and ensure the IRS employs fair tactics and acts professionally. Having the resources of a tax attorney-CPA-IRS EA can help level the playing field.

Leveling the playing field is where Harmon Tax Resolution, LLC, an experienced professional tax relief firm, comes in. The firm will adequately address your tax situation by determining the correctness of IRS assessments and identifying which qualifying IRS tax relief program fits your situation. You will deal directly with a multi-licensed Tax attorney-CPA-IRS Enrolled Agent, addressing your tax problems from every angle, ensuring nothing gets overlooked.

Why Should I Not Just Deal Directly with the IRS Regarding my Tax Issue?

Although it is not impossible to work directly with the IRS, provided you can get through to the correct person there and have procedural knowledge of how the IRS operates and an understanding of tax law. The IRS will inform you of some available options. However, the IRS will not disclose your best option. Using self-help in coming up with a tax resolution will most likely result in your having to pay the entire IRS-assessed tax liability but may have to do so with the equity from your assets, which otherwise you may not have had to. If you lack assets, the IRS may enforce other drastic collection apparatus such as bank levies or wage garnishments. By employing Harmon Tax Resolution, LLC, you will gain the power of a three-in-one multi-licensed tax attorney-CPA-IRS EA to thoroughly review the IRS’s position and make challenges as needed. Employing Harmon Tax Resolution, LLC will ensure that your tailored resolution plan will prevent you from unnecessarily paying more, allowing you to hold on to more of your resources rather than giving them to the IRS.

What are the Main Scenarios Leading To Tax Issues?

The IRS’s primary function is the collection of taxes. Many scenarios often result in your not paying the IRS or timely responding to their notices. The amount of taxes you owe, where you are within the IRS collection cycle, and the variety of tax issues will determine the urgency and severity of your situation.

Tax issues primarily consist of three types:

1. You have additional taxes and penalties due to IRS assessment from an audited tax which reflects errors on your tax return.
2. You have a tax liability with the IRS, have been unresponsive to their notices, and possibly, the IRS has acted against you. Now you need representation assistance.
3. You have not filed your tax returns and/or owe taxes, although the IRS has not reached out to you yet.

The above items are just the most common ones taxpayers often face, therefor is not an all-inclusive list. Due to the tax code’s complexities, many other ways to fall out of compliance exist. Regardless of the tax issue involved, there is one thing constant. The situation only gets worse over time. The IRS is one of the most rapacious creditors with powerful abilities to not only severely penalize and charge interest on entire overdue amounts (tax and penalties) but elevate the situation to where they can lien, levy, and garnish your wages and assets. Ultimately, the IRS can even foreclose on your properties. Addressing your tax issues as soon as possible is the best approach if you have a solid and correct plan. Good intentions may not lead to good results if you are unfamiliar with the ins and outs of the IRS Internal Revenue Manual (IRS’s playbook) and Internal Revenue Code (tax law). It pays to hire someone who does.

Harmon Tax Resolution, LLC Will Deliver the Best Possible Results While Tenaciously Representing Your Rights Towards Aggressive IRS Collections

Be careful because not all tax resolution firms are the same. There are many out there that will not perform a proper, thorough investigation of all the facts specific to your case and end up developing a cookie-cutter-like fashion plan –where everyone’s matter falls into a few different categories resulting in a possible missed opportunity to get the best resolution possible. This could be costly, and you will most likely not be aware that a better option existed or that the one you used was not optimized for your specific situation.

Harmon Tax Resolution, LLC will thoroughly review the circumstances surrounding your DISTINCT tax issues on a personal and individual basis and resolve your tax liability based on the facts and circumstances of your DISTINCT case. Your case will be handled solely by a three-in-one tax attorney-CPA-IRS Enrolled Agent to ensure nothing gets overlooked. Your matter matters!

Advantages of Employing Harmon Tax Resolution, LLC

• Your case is resolved by a multi-licensed tax attorney-CPA-IRS EA assuring your matter deserves complete representation.
• Free initial consultations.
• Affordable payment plans are available.
• Timely and privileged communications.
• Our customers speak highly of our services.

Employing a professional tax resolution firm can be the best cost-saving strategy. Since the IRS can use aggressive collection tactics, which will only significantly worsen the situation, a tax resolution action must be needed. A seasoned, experienced tax professional such as a multi-licensed Tax attorney-CPA-IR EA, Will Harmon of Harmon Tax Resolution, LLC, can guide you through every step to ensure you get the best outcome for your situation. The initial consultation is free. You can take control of your situation. Call today so that you can sleep well tonight! 772-418-0949

Tax Attorney vs. CPA vs. IRS EA: Why Not Hire a Three-In-One?

When looking for a tax professional to resolve a stressful and complex tax issue, whether personal or business-related, it can be challenging to narrow down which type of tax professional fits well for your situation. Wouldn’t it be ideal to employ a tax professional who can “check all the boxes,” enabling the most efficient and effective way to address your pressing tax situation?

Many tax and financial advising specializations are reflected by the many different professional designations across these professional spectrums, so much so that it has become exceedingly difficult to ascertain which type will provide adequate coverage for your tax situation.

The IRS has simplified this search by narrowing the field down to three types of tax professionals who are granted unlimited rights to represent clients before them: Attorneys, Certified Public Accountants (“CPAs”), and IRS Enrolled Agents (“EAs”). The IRS assumes that these are the most qualified and able professionals to represent taxpayers. Tax attorneys, CPAs, and EAs have different skill sets that may lend to choosing one over another based on purported needs for tax resolution. The range of skill sets among professional tax types can create a dilemma when choosing between them.

Since most people are not tax experts, it can be challenging to ascertain the best skillsets for their tax problems upfront. Most reputable tax resolution firms investigate your situation before determining the correct course of action. Frequently, many tax issues are complex and successful resolution requires a multi-facet approach. Therefore, hiring a multi-certified Tax Attorney-CPA-IRS EA will enable you to “check all the boxes,” their combined skillsets will cover all elements of your tax issue. This unique skillset combination enables them to see the tax problem simultaneously through three separate lenses, allowing for every angle of the tax case to be examined, coupled with the ability to address them correctly and appropriately. For example, if it becomes apparent that a legal issue is present, you already have an attorney. This synergy approach allows for savings in time and costs.

Let’s discuss the attributes of each of these tax professionals.

The Attributes of a Tax Attorney

Tax attorneys are lawyers who have completed law school to obtain a Juris Doctorate (“JD”), passed their state’s strenuous bar exam, and focused on tax issues in their practice. Many tax lawyers have obtained an LLM in Taxation or a certificate in taxation in their JD.

Unlike CPAs, who are remarkably adept at overseeing financial records and preparing tax returns, tax attorneys are geared more toward planning and dispute resolution. Tax Attorneys primarily focus on helping individuals or businesses minimize their tax liability by structuring assets or representing them through tax-related litigation.

While CPAs and EAs are allowed to represent clients in front of the IRS, they typically do not have the experience or training that a tax attorney would have when representing a taxpayer. If you are dealing with an audit that has the potential for severe penalties or facing a potential criminal issue, a tax attorney would be the ideal choice. Tax attorneys have strong advocation skills and explicit intimate knowledge of tax law and the tax code, including court cases and legislative tax history. Tax attorneys are ideal for negotiating problematic tax situations and fact patterns to reduce your taxes.

Tax attorneys also offer one significant benefit that CPAs and EAs do not — complete privileged communications. Any information you provide your tax attorney is protected by client-attorney privilege, meaning they cannot be forced to testify against you. Having attorney-privileged communication offers a distinct advantage if you are dealing with possible criminal charges from the IRS and wish to prevent conversations with your tax expert from inadvertently being used against you. In addition, for the tax practitioner to properly diagnose and employ appropriate resolution measures, they must have access to all case facts. If the taxpayer is unwilling to provide specific facts for fear of recrimination if their tax practitioner were called upon to testify against them, the case may not be resolved in the best way possible. Having an attorney in this type of situation is critical.

The Attributes of a Certified Public Accountant (CPA)

A CPA’s skillsets cover a broad range of accounting and finance fields due to the educational requirements of a 5-year degree, along with passing a rigorous CPA exam. CPAs are one of the most adaptable and resourceful financial professionals available because their ranges can typically cover auditing, taxation, and financial analysis, to record-keeping and business strategy. A CPA’s demanding education requirements and varied skillset set them apart from other accounting and finance professionals.

CPAs have earned a distinction for being the most sought-after advisors in their field. CPAs are the preferred choice for year-round financial reporting and tax preparation due to their well-rounded skillsets. While a CPA is one of your best options when filling out those complicated IRS tax forms, they can also serve as a primary advisor for various financial decisions, including investment, real estate advice, estate planning, specific IRS problems, and more.

In addition, only CPAs can render qualified opinions for financial audits; therefore, CPAs are the go-to for any audit-related concerns. If you are faced with a tax audit or need someone to audit your financial information for correctness, involving someone with a CPA background is an ideal choice vs. any of the other types of tax professionals. Attorney’s and EA’s designations are absent any audit proficiency requirements, whereas, for CPAs, audit proficiency is a vital component of the CPA exam. Hence, a key advantage of using a CPA is their ability to review or audit a business’s financial records to identify problem areas that need correction and where you are in good standing. Having well-maintained records allows for better decision-making and helps ensure compliance with IRS regulations.

Tax attorneys and EAs usually do not focus on balancing the books, finding errors in recording financial transactions, or helping you make a financial decision. Having a CPA is advantageous when faced with an IRS issue that may require these skill sets. However, one may be surprised to learn that many CPAs do not even handle tax matters. Many CPAs only handle books and accounting. They focus on preparing and auditing financial statements. It is essential to assess a CPA’s background in tax if needed for tax-related concerns.

The Attributes of an IRS Enrolled Agent (EA)

When choosing a CPA or an attorney for IRS tax issues, one must ascertain whether either has sufficient tax knowledge to properly navigate the IRS rules and regulations. That is not the case with an IRS Enrolled Agent. EAs are hyper-focused on IRS tax rules and regulations. All EAs have an in-depth knowledge of taxation and understand the ins and outs of dealing with the IRS at all administrative levels. The IRS considers the Enrolled Agent the “Gold Standard” for tax professionals based on tax knowledge and proficiency. Unlike CPAs and attorneys, the Enrolled Agent license is granted by the federal government through the US Department of Treasury. It is the highest title awarded by the Internal Revenue Service to tax experts, granting them an unlimited privilege to represent taxpayers before the IRS. To become an EA, one must pass a three-part Special Enrollment Examination that covers every aspect of individual taxes, business tax law, and professional ethics. Alternatively, an individual can be granted an EA license if they’ve formerly worked with the IRS for more than five years and will obtain clarification that their experience with IRS is adequate.

When considering an attorney or CPA to handle a tax problem, it would be prudent to ascertain whether either has comparable tax knowledge to an EA. Conversely, when looking to employ an EA, one must determine how to assess and address whether skillsets inherent in an attorney or CPA may be required to resolve a case correctly. There is a saying that one is only as strong as their weakest link. This also holds in tax resolution since the case may not be resolved correctly if any resolution criteria box is not checked off. With so much on the line, it is critical to ensure all bases are covered.

The Benefits of a Multi-Licensed-Certified Professional

Having a Three-In-One Tax professional enables you to “check all the boxes” needed to resolve a stressful and complex tax issue. It’s essential to recognize that, at the outset of a tax case, it is often unknown what all the required elements will be because most tax issues require a complete investigation to properly ascertain all angles of the case. Wouldn’t it be comforting to know that your chosen tax professional already “checks all the boxes” at the outset of the engagement? Just knowing this will provide a sense of relief.

Typically, a tax attorney is retained for more complex and specific tax issues. In contrast, the CPA is usually utilized to keep financial records in order, conduct and/or assist in audits, and prepare tax returns. EAs are primarily used for various tax issues and tax preparation. The advantages of having a three-in-one professional are hard to overstate since tax issue resolution of many IRS tax issues often involves a holistic approach requiring a combination of skillsets customarily associated with each of the three tax professional types.

For example, an IRS tax problem may contain tax issues requiring various elements such as proper case law research, litigation, stringent client advocation, and privileged attorney communications, which primarily check the “attorney” box. The same case may contain IRS compliance issues, such as amending tax returns or preparing unfiled returns to be completed, which falls under an EA’s realm. The CPA skillsets will be ideal if this case includes an audit component, which they often do.

Another example will be if the IRS requests an audit. Naturally, having a CPA would be ideal. As the audit progresses, there appear to be legal issues that ideally should be handled by an attorney. The audit also uncovered compliance issues that an EA would be ideal for addressing. Using multiple parties could make things somewhat disjointed and cost significantly more.

Employing a three-in-one tax attorney-CPA-EA will enable you to check all the boxes for your tax resolution issue. Harmon Tax Resolution, LLC offers such an all-under-one-roof solution. Will Harmon is an experienced tax attorney-CPA-IRS EA- MBA who can provide the complete representation your matter deserves. Contact us for a free consultation to see how he can offer a complete solution to your tax issue so that you can sleep well tonight.

For many, dealing with the IRS can invoke significant stress, especially when one has received a notice of an impending audit. Should I lawyer up? This may be the first reaction; however, in many instances, this is not necessary.

When you get an IRS notification, you should first take a deep breath and relax so that you can constructively interpret what the IRS notification pertains to, along with its gravity. For example, you may receive an audit notification due to a random selection technique and not based on anything you did or reported. Or maybe the audit was triggered due to a simple omission or miscalculation of reported tax return items. Once you or your accountant have reviewed it, you can remedy and explain as needed. As a tax lawyer, I receive calls requesting legal services, which are not required. I inform the caller accordingly. However, as a licensed CPA, I also give accounting advice as needed.

As far as IRS representation goes, one can be represented by an attorney, a CPA, or an IRS EA. There is some overlap towards what any of these professional types can do. All can negotiate and structure IRS deals on your behalf, hopefully getting you a better outcome and reducing your tax debt.

In this blog, I will discuss the circumstances where you probably don’t need legal representation and the situations where having a tax attorney to address your issue is the wisest choice.

Situations Where You Don’t Need a Tax Attorney

In case of an audit, your records are well maintained, and you have followed the tax code correctly; you should be able to get through the process without much trepidation. At most, having a tax CPA who can help prepare the information audit will be all that is needed.

In cases where you are being audited because of a questionable item, a range that falls outside the norm for that industry, a charitable deduction amount, and certain questionable expenses, you may only need to provide verification and plausibility. Getting your records in order and providing scheduled schedules align with what a CPA or an EA would specialize in.

Suppose you have a tax assessment that has an amount beyond your ability to pay at once. In that case, other options may be available to settle the debt, including installment plans, tax reduction negotiations, and other options. This area is where a tax attorney, a CPA, or IRS EA could investigate all available options, arrange ideal payment terms, or incorporate possible debt reduction strategies. Some of these options could include the following:

• Penalty Abatements – specific penalties and associated interest removed or reduced.
• Currently Not Collectible status – having collections stalled.
• Offer In Compromise – settling the tax bill for a lower amount.
• Installment Plans – pay tax debt over time.
• Innocent Spouse Relief – typically, for joint filers, both are joint and severally liable for the entire tax bill; however, there are circumstances where one spouse can be relieved of tax liability attributable to the other spouse.

When Tax Lawyers are Required

The main reason to hire a tax lawyer is when there are potential tax fraud and/or tax evasion charges. A lawyer can provide the necessary expertise and legal counsel, which one would most likely not receive from a non-lawyer tax practitioner. Most tax audits do not require this representation level, but knowing your options is beneficial if the potential for criminal charges exists.

If you need tax audit defense, having a tax lawyer would be advantageous for the following:

• Negotiating – lawyers are trained to look at both sides of a position which is ideal when needing to leverage all elements of the situation to obtain optimal results.
• Testifying Exemption – lawyers offer privileged communications, whereas other tax professionals may be compelled to testify against you in a legal proceeding.
• Criminal Charges Looming – If your tax situation has regressed to where IRS is threatening you with criminal prosecution, you will want an aggressive tax attorney on your side to fight for your rights.
• Portray Greatest Defensive Capability – having a lawyer for day one signals that you plan to avoid criminal charges and have adequate legal counsel in your corner.

Harmon Tax Resolution, LLC has you covered in either realm.

Since Will Harmon is a tax attorney, CPA, and IRS EA, he can provide complete representation across the spectrum. Whether you’re undergoing an audit due to a minor clerical error or facing criminal charges for tax evasion or tax fraud, Will can help.

No matter what level of representation is needed, it is paramount to respond quickly and without delay. The situation only worsens the longer you wait to respond to the IRS. Sometimes, you lose certain appeal rights if you wait too long. For a free consultation with a Port Saint Luce, Fort Pierce & Stuart Tax Attorney, contact Will Harmon today.

Dealing with the IRS can be a very daunting experience, especially when there is so much on the line and you may lack the training, knowledge, and expertise to incorporate the best action to remedy your situation. Recognizing this is the first sign of when to consider bringing in an experienced tax professional to address the tax problem. My multifaceted background as a tax attorney, CPA, and IRS Enrolled Agent enables me to see your situation from all angles, allowing me to handle your case objectively and clearly; therefore, you can feel assured there is a solution.

Below are typical situations where you may need a multifaceted tax professional to step in and handle them for you.

You have a significant tax debt with the IRS, which made the IRS very aggressive with you. In addition, it has grown from not responding to this debt, increasing your stress and temperament, along with a continual escalation by IRS. You feel like you are reaching a breaking point, and avoiding heightened emotions is hard. Hiring a multifaceted tax attorney-CPA-IRS EA will help get the situation under control and allow for your emotional state to become relaxed.

There are years of unfiled Tax returns, or the IRS has filed tax returns in your place. It often becomes very problematic for those who choose not to file their tax returns and even more so when the IRS elects to do this for you. If you are in this situation, reaching out to a tax professional is very helpful to get this taken care of. Harmon Tax Resolution, LLC is a licensed E-filer with IRS with 20 years of tax preparation experience.

You have been notified that an IRS Revenue Office (RO) has now been assigned to your case. Having to deal with an RO usually indicates negative things to come. When this happens, hiring a tax professional will help your outcome dramatically, resulting in your rights being protected and your tax being handled correctly. In addition, you will be able to resolve your tax debt without it having to your tax debt is efficiently handled

Time is of the essence if you are dealing with levies and garnishments. Hiring immediate tax professional help may be vital in getting a levy released or reduced.

If your tax problem is similar to any of these, call Harmon Tax Resolution, LLC at 772-418-0949.  Will Harmon, Attorney-CPA-IRS EA, can help no matter what you go through! Call today and sleep well tonight.

A few months ago, a client called me with his IRS nightmare. After diligently researching the problem, it was discovered that a step-up inheritance basis was not correctly applied, resulting in significant tax, penalty, and interest add-ons. My client was terrified. I reassured him that we would find a working resolution. It took some work with the brokerage firm, applying the correct IRS tax code, and advocating with the IRS. The final results are that taxes, penalties, and interest were removed, my client sleeps better at night, and to boot, he got a refund and some future long-term capital loss carryforwards.

It was worth it for my client to call about his situation. Since the initial call is a free consultation to discuss if there is a way I could help your situation. The information provided during the free consultation will determine whether I could be of help. Therefore, I highly recommend that anyone dealing with a stressful tax issue call me. Getting proper relief to sleep well at night is worth making the call.

There is a lot to be said for the do-it-yourself approach to your money, yet the go-it-alone path has its limitations, especially regarding the IRS and back taxes.

We see clients that have tried to handle their taxes on their own, sometimes raising red flags with the IRS, resulting in audits, or getting hit with a big tax bill they can’t pay. They might set up an installment agreement on their own, but often, the DIY approach just makes the penalties and interest keep stacking up, placing you in an endless loop of compounding interest, penalties, and your tax debt growing every month despite making monthly payments. Many of our clients started by trying to do this on their own or with their current tax preparer and didn’t get the results they were hoping for.

Dealing with the IRS requires a specialized skill set that most tax preparers and CPAs don’t possess. Make sure you have a tax resolution specialist on your side.

So, before you end up in that horror story, here are three times when hiring a tax pro or a tax relief firm like ours is the only way to go.

#1 You Just Received a Major Windfall

Even if you know how to handle your finances, receiving a major windfall can throw your plans into a loop. Whether you are the lucky holder of a winning lottery ticket or the recipient of a significant inheritance, it pays to seek outside advice.

If you choose the DIY approach and make a mistake, you could pay more taxes than you should, but a high tax bill is not the only danger. Handling your windfall the wrong way could throw off your asset allocation, impact financial aid for your college-bound children and create additional problems down the road.

#2 You Have Existing Tax Problems with the IRS

When you have issues with the IRS, you absolutely cannot afford to go it alone. Attempting to resolve tax issues on your own is unwise in the extreme, and a single slipup could leave you on the hook for even more. Ask yourself if you would go before a judge in court without a lawyer representing you. Probably not. It’s the same here. Representing yourself before the IRS is generally not a good idea. Don’t do it. You most likely will get “creamed”!

If you receive a notice from the IRS, time is of the essence, but you should not let the desire for fast action override the need for professional help and guidance. If you want to resolve your issues fairly without going broke, do yourself a favor and find the right tax resolution firm. Hiring an enrolled agent, CPA, or attorney trained in tax relief is the best way to preserve your rights, and you do not want to go it alone.

#3 When You Have Assets You Need to Protect

When you owe taxes, the IRS only cares about getting paid what they think you owe them.

They’ll levy your bank account, emptying everything you have in there. If you run a business, that means you won’t be able to pay your employees, pay your office rent or keep your lights on, ultimately putting you out of business.

They’ll also garnish your paycheck, leaving you about 10% to 25% of your net pay to live on. Good luck with that.

They can also put a lien on your assets, including real estate, personal property, and financial assets. This puts in jeopardy everything you’ve worked so hard to attain.

Hiring the proper tax relief professional can help you avoid such extreme measures taken by the IRS. They’ll communicate with the IRS on your behalf and can often remove a lien or levy. If you have assets you can’t afford to lose, then hiring a tax relief pro is the only way.

The Bottom Line

Even if you are confident in your Do It Yourself (DIY) approach or feel your tax problem isn’t so severe, it never hurts to get a second opinion. If you are doing everything right, that tax resolution specialist’s advice will give you peace of mind. If there are deficiencies in your actions, the advice you get could stop you from making a devastating and possibly irreversible mistake. You may also find that you can settle your back tax liabilities for less than what you owe. Often, for a fraction of what’s owed!

If you run into tax trouble, reach out to our tax resolution firm, and we’ll schedule a free, no-obligation confidential consultation to explain your options to resolve your tax problem permanently.

Unlike your mortgage lender or credit card company, the Internal Revenue Service has the power to attach your wages, raid your bank account and even take your freedom. No other creditor even comes close in terms of its power and influence, and taking on the agency on your own could be asking for trouble.

If you have received a notice from the IRS, you need to act fast, and you need the right assistance in your corner. Taking on the IRS requires specific expertise, and that is why it is so important to work with a quality tax resolution company. Here are seven reasons why working with a tax resolution specialist could save your good name – and your bank account.

1. You gain specific expertise. The IRS is a specialized agency, and you need expert advice and guidance to get the most positive resolution.
2. It will give you peace of mind. Just being contacted by the IRS can make your heartbeat a bit faster, but working with a tax resolution expert can set your mind at ease once you hire a tax resolution specialist. Generally, once you hire a tax resolution expert you won’t have to meet or speak with the IRS. They will handle all communications and correspondence with the IRS.
3. The tax resolution process could save you a lot of money. Tax resolution professionals are experts at settlements, and working with one could save you a ton of money.
4. Timely action could save your home and property. If you wait too long, you could put your home, business, bank accounts, and personal property at risk. Time is of the essence when it comes to resolving tax issues, and timely assistance could make a world of difference.
5. You will feel less alone. Few things feel as lonely as fighting the IRS on your own. When you work with a tax resolution expert, not only do you not have to go it alone but they actually step into your shoes to represent your best interests.
6. You will have a chance to file missing returns. When faced with a big tax bill, it is easy to do nothing, but failing to file legally required tax returns could have serious consequences down the line. If you have years of unfiled returns, a tax resolution expert can help you catch up.
7. You could save your credit score. Unresolved issues with the IRS will reflect badly on your credit report, lowering your credit score and making it harder to borrow money or qualify for a mortgage. Timely tax resolution could preserve your stellar credit score and help you avoid those serious consequences.

Owing money to the IRS can be pretty frightening. There is a reason those three letters strike so much fear into the hearts of ordinary citizens, even those who have done nothing wrong.

If you are in trouble with the IRS, you cannot afford to ignore the issue, so act fast and get the help you need today. Working with a tax resolution expert carries a host of benefits, starting with the nine outlined above.

Most likely, you wouldn’t go to court without a lawyer. Similarly, it’s best not to deal with the IRS without expert representation which can be provided by a tax resolution expert, who by training, is also a CPA, attorney, or enrolled agent. At Harmon Associates. LLC you will get the power of all three in one to represent your matter.

Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem. Contact us