Common Procedures in an IRS Case

Each IRS case is unique to its own set of facts, so I can only give a general guideline of what I usually do to pursue a solution for someone who owes delinquent taxes.  When a client retains me, he will sign a Form 2848 Limited Power of Attorney that allows me to represent him before the IRS.  I will then order the client’s Master File records for all the years in which he is delinquent to determine how much is owed and

 

 

also to make sure all tax forms have been filed, at least back to 2003.  I will also supply the client with one or more financial information forms to fill out and return to me along with supporting documentation.

After I receive the information from the IRS and from the client, I can then determine if he qualifies for an Offer In Compromise or an Installment Agreement or if another form of solution is needed. I will then open negotiations with the IRS to solve his tax problem in the best and most convenient way for the client.  This process generally takes at least six to eight months or longer.

Another solution that I use in qualifying situations is Currently Not Collectible status.  In this case the IRS will cease trying to collect the tax for at least a year.  After that they will check the client’s financial condition again to see if he can now pay.  If the circumstances fit, I may also file an appeal and ask the IRS to forgive the penalties they have charged, which in some cases can be almost as much as the tax.