Navigating Solutions and Strategies for IRS Tax Problems

Taxes can be stressful even when everything is running smoothly. Consider how much more stressful it may be if you are hit with IRS tax problems. Whether you’re dealing with unpaid taxes, an audit notice, unfiled taxes, or another issue, you need someone on your side to help you navigate the issues.

Working with a qualified CPA who knows how the IRS works and understands terminology and requirements is essential to making it through these issues. Working through problems with the IRS requires knowledge and strategy. Find a qualified CPA in your area to help you through it. Take a look at these solutions and strategies to help you through the process.

Common IRS Tax Problems

There are many different problems a person or a business could face with the IRS. They could easily vary depending on your situation, as well as things that have happened in your past. Understanding the potential problems is the first step. Let’s take a look at some of the most common issues.

Unpaid Taxes: Unpaid taxes lead to penalties and interest. If they remain unpaid for a significant period of time without a plan to work through it, this can lead to legal action by the IRS.

Unfiled Prior Returns: Individuals and businesses must file their tax forms every year. There are very few exceptions to this. If your returns have not been filed, regardless of the reason, this could cause some serious IRS problems.

Audits: Nobody wants to get that notice that they are being audited, but it does happen. You may not have any issues, but you will need to coordinate and cooperate to ensure they get the data they need to move forward. A CPA will be very helpful with this.
Tax Liens or Levies: Liens and levies typically happen because of unpaid tax debt. The IRS has the legal allowance to place liens or levies on property and bank accounts to attempt to recover any unpaid debt.

Strategies to Work Through IRS Tax Problems

The first and most important strategy to consider is the fact that you don’t have to go through this alone. There are professionals in the industry who have the knowledge and expertise to help you. At Katherine M. Johnson, CPA, we take great pride in being there for you through challenges like these. Reach out to us today to get the help you need.

Consider these strategies that may be helpful.

Professional Help and Open Communication

The IRS is going to make demands and ask questions. The truth is you probably won’t get much one-on-one time or personalized guidance from them. However, you are going to need to make sure you are responsive to their requests and that you quickly send anything they need. Maintain open communication channels as best you can.

The complexities of working through IRS problems or challenges can be overwhelming. A professional CPA who has experience working through issues like yours will know how to walk through this with you. A CPA is not your only professional option, either. You can opt for an enrolled agent, a tax attorney, or another type of tax professional. Just get the help you need, as we can guide you, represent you, and work to negotiate on your behalf.

Understand Payment Options

If the problem is related to unpaid tax debt, you need to create a plan to resolve the issue as soon as possible. Even when you cannot pay the full amount at one time, there are options available to you. Taking action with a payment plan or payment option is far better than just doing nothing.

When you make an effort and set up a solution to resolve the unpaid debt, you are far more likely to settle things without major legal ramifications. The IRS offers a few different payment options. This includes a payment extension, installment agreements, and more.

You may still have to pay some interest or penalties, but these solutions put you on the right track to resolving the problem.

Work on Filing Missing Returns

If you have missing tax returns, they are better late than never. This is one of those issues where simply ignoring it won’t make it go away. The more that you ignore it, the more likely you are to have the IRS come after you.

Even if you are late, you need to work with a CPA and get those returns filed. Address the missing tax returns as soon as you can. Filing late will help to mitigate your situation. While you may still have some penalties to pay, the consequences of filing late will be much better than if you continue to ignore the problem.

Appeal an Audit

In some cases, you may have the option to appeal an audit request. This simply depends on the scenario. If the IRS truly did find an issue or discrepancy that led to this audit, you will need to work through the process.

However, if the IRS has a finding that you disagree with, you do have the right to appeal. Through an appeal, you will present your case to an appeals officer. Depending on the situation, the appeal may be resolved there. It’s possible in some cases to reach a resolution without proceeding to court.

Work with your CPA to determine whether an appeal might be the right approach.

Get Help with IRS Tax Problems from Katherine M. Johnson, CPA

When tax issues have you overwhelmed and stressed out, remember that you are not in this alone. We are here to help! Make sure you understand just what your tax issue is and lean on professional support as you work through the process of resolving your tax problems.