The Consequences of Ignoring IRS Letters and Notices

Steve Perry

Published on: 09/07/2025

- Ignoring IRS letters can lead to serious outcomes including financial penalties, interest, and legal actions. - Penalties and interest accrue immediately on unpaid taxes, increasing the debt over time. - Failure to respond to IRS proposals like CP2000 within 30 days may result in loss of refunds or tax credits. - Unresolved tax issues can trigger federal tax liens, affecting property and credit, or levies that seize assets such as bank accounts and wages. - The IRS can garnish wages, withholding up to 25% of paychecks, causing financial hardship. - In extreme cases, continued noncompliance may result in criminal charges for tax evasion or fraud. - Taxpayers should carefully read IRS notices and seek professional assistance promptly. - Books, Taxes & More offers expert help to evaluate, respond to IRS correspondence, and represent taxpayers to avoid costly mistakes. - Promptly addressing IRS letters protects assets and prevents escalating financial and legal consequences.

Tax education articles and IRS representation advice for individuals and small businesses

Navigating IRS Offer in Compromise for Tax Relief

Steve Perry

Published on: 08/07/2025

- The IRS Offer in Compromise (OIC) allows taxpayers overwhelmed by tax debt to settle for less than owed based on their financial hardship. - Acceptance depends on the IRS’s evaluation of income, expenses, assets, and reasonable collection potential. - Not all taxpayers qualify; professional assessment by experts like Enrolled Agent (EA) Steve Perry prevents wasted applications and delays. - Preparing an OIC requires precise completion of Form 656 and Form 433-A(OIC) with accurate financial disclosure to avoid rejection or delay. - Experienced representation helps negotiate with the IRS, respond to counteroffers, and handle appeals if necessary. - Common taxpayer errors include miscalculating payment ability, improper asset accounting, and failing tax compliance; professional guidance addresses these issues. - Steve Perry, EA from Books, Taxes & More provides expertise in navigating the complex OIC process, improving chances of a successful tax debt settlement.

Tax education articles and IRS representation advice for individuals and small businesses

Navigating IRS Collections: Essential Steps to Take

Steve Perry

Published on: 06/07/2025

- The IRS collection process starts when a taxpayer owes unpaid taxes, involving steps like initial notice, final notice of intent to levy, federal tax lien, levy (asset seizure), and wage garnishment. - Initial notices demand payment within 30 days and detail the debt, including taxes, interest, and penalties. If ignored, the IRS can seize assets or garnish wages. - IRS actions can damage credit scores and restrict financial opportunities. - Taxpayers can stop or prevent collections by: - Hiring a tax professional or Enrolled Agent to verify debts, negotiate, and manage communications with the IRS. - Paying debts fully or setting up installment payment plans with affordable monthly payments to avoid agreement cancellations. - Requesting Currently Not Collectible status if unable to pay due to financial hardship, temporarily halting collections. - Filing for Innocent Spouse Relief when a spouse is responsible for the debt, though this is complex and requires expert help. - Submitting an Offer in Compromise to settle debts for less than owed, which needs professional preparation due to IRS’s strict evaluation criteria. - Partnering with experts like Books, Taxes & More enhances chances of resolving issues efficiently, minimizing financial damage and protecting assets.

Tax education articles and IRS representation advice for individuals and small businesses

Common IRS Problems for Taxpayers and How an Enrolled Agent Can Help

Steve Perry

Published on: 04/07/2025

- Taxpayers often face stressful IRS issues like unpaid taxes, audits, failure to file, liens, errors, identity theft, and payroll tax problems. - Enrolled Agents (EAs) help by negotiating payment plans, penalty abatements, and Offers in Compromise for tax debts. - During audits, EAs represent clients, review documentation, and strategize to minimize liabilities. - For unfiled returns, EAs assist with accurate filings, penalty reductions, and stopping collections. - They work to remove liens and levies, protect assets, and establish hardship exemptions. - EAs correct errors by amending returns and advise on proper record-keeping. - In cases of identity theft, they help report fraud, secure records, and obtain IRS protective measures. - For business payroll tax issues, EAs review filings, resolve disputes, and improve payroll compliance. - Overall, EAs advocate for taxpayers to achieve the best outcomes and provide essential support when dealing with the IRS.

Tax education articles and IRS representation advice for individuals and small businesses