4 tips for resolving a tax dispute | keep calm and call your financial advisor

and call your financial advisor

By Clay Rose, CPA

(4 Tips For Resolving A Tax Dispute)

4 Tips For Resolving Your Tax Dispute

Tax season can be rough for any business. Just about the time you allow yourself to move on to something else and breathe a sigh of relief … you find yourself staring at a letter from the IRS.

The IRS Says You Owe More?

Stop


Take a deep breathCall your financial

advisor

Believe it or not, the IRS can (and does) make mistakes

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Agents can accidentally input incorrect information, computers can misread data

and tax codes can be inadvertently overlooked or misinterpreted.

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Followthese

4 steps

to reacha

resolution

1. Follow Instructions



Sometimes the easiest way to resolve the issue is to follow the instructions. Sounds easy enough,

but not everybody gets this part right.



If the IRS sent you a notice, look for the section that explains what to do if you disagree with their decision and

follow the directions.



Additionally, be sure to attach any supporting documentation and mail it back to the address

given by the deadline requested.



After the IRS has made its decision, you will be notified via U.S. Mail.



When in doubt, opt to send

inquiries to the IRS via certified

mail and request

a receipt. #protipFollow Rea on Twitter!

@ReaCPA

Make The Call2



2. Make The Call

If your initial challenge was rejected, your next step is to

follow up with a phone call.


2. Make The Call

The rejection notice you received should

have included another important

piece of information: the

contact name and number of the IRS

employee who rejected your challenge.


When you call, be polite and professional.

Ask to speak to the employee’s manager (but take care not to say anything about

why you are asking to speak with their

supervisor). The last thing you

need is to create animosity.

#protipFollow Rea on Twitter!@ReaCPA


2. Make The Call

When you speak with the supervisor, your case should be laid out in the same way as your original

challenge.


2. Make The Call

Be clear and concise in your explanation while taking care to

address any concerns that were

noted by the original employee in their rejection letter.


2. Make The Call

If your letter didn’t include an

employee’s name and phone number,

send another certified letter to a general supervisor

with the agency and request that they reconsider your

case.


3. Appeal To A Higher

Office


3. Appeal To A Higher OfficeIf you still haven’t

convinced the IRS to change its mind, don’t

give up – even if you have already mailed several

letters and racked up a lot of call time with the

agency.


3. Appeal To A Higher Office

Further up the chain of command is the

Office of Appeals, an independent office

within the IRS.


3. Appeal To A Higher Office

To get your case to the Office of Appeals, follow the instructions found in

your earlier notices or you can search the IRS

website.

4. See It Through



4. See It Through

Sometimes a resolution can’t be achieved in the

first three steps of the appeal process.


4. See It Through

If you find yourself in this situation your final option is to take the case to the U.S. Tax Court.


4. See It ThroughAt this point you may be discouraged and may even question whether you should continue on with the fight, but if you still

believe that the IRS is wrong it’s probably in your best interest

to see it through to the end.


4. See It ThroughIf your dispute is less than $50,000 you will

have the option to represent yourself.


Similar to how a small-claims court operates, there is

no jury and the judge

will not hold your inexperience against

you. #protip

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4. See It ThroughOnce court is in session you will state your case again, provide evidence and answer any questions a judge may ask

about the claim. Once a decision is made at this phase it is final

and cannot be appealed.

Sometimes, even though you have decided that you want to move forward, an IRS attorney may offer to settle out of

court for a figure less than what the IRS says you owe. If this happens, you need to decide whether you will accept the

settlement or if you will move forward with presenting your case to the judge. The choice is yours.


If you find yourself at odds with the IRS over a tax issue and are not sure how to proceed

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Call your financial advisor.www.reacpa.com

Do you need to connect with a tax professional?

Email Rea & Associates today.

http://www.reacpa.com/contact-us/

http://www.reacpa.com/contact-us/

4 tips for resolving a tax dispute | keep calm and call your financial advisor

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