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

Dealing with the IRS can be a terrifying experience for many taxpayers. Whether it's an unexpected tax bill, an audit notice, or issues with tax filings, these problems can cause serious stress and financial hardship. However, with the help of an Enrolled Agent, many of these issues can be efficiently resolved. Let’s look at some of the most common IRS problems taxpayers face and how an Enrolled Agent can provide much-needed assistance.

1. Unpaid Taxes and Tax Debt

One of the most common IRS problems is having an outstanding tax debt. Many taxpayers find themselves unable to pay their tax liability in full, leading to penalties and interest that can quickly accumulate.  This can also lead to liens, levies and garnishments.

How an Enrolled Agent Can Help:

• Negotiate installment agreements to pay off the debt over time.

• Have the account declared Currently Non-Collectible to give taxpayers a chance to regroup and become more able to pay the debt without halting the statute of limitations.

• Help qualify for an Offer in Compromise where the IRS settles for less than owed.

• Advise on penalty abatement options to reduce extra charges.

2. IRS Audits

An IRS audit can be triggered for several reasons, including inconsistencies in tax filings or red flags such as large deductions within a specific industry. Facing an audit can be overwhelming, especially if you don’t know what to expect.

How an Enrolled Agent Can Help:

• Represent you before the IRS and communicate on your behalf.

• Review your records and ensure all necessary documentation is available.

• Develop a strategy to minimize potential liabilities resulting from the audit.

3. Failure to File Tax Returns

Failing to file a tax return can result in penalties, interest, and other collection activities. The longer a taxpayer waits, the worse the situation can become.

How an Enrolled Agent Can Help:

• Assist in filing past-due tax returns accurately.

• Negotiate with the IRS to reduce penalties and interest.

• Help stop collection efforts.

• Help taxpayers negotiate an appropriate debt elimination plan.

4. Tax Liens and Levies

If a taxpayer owes a large amount isn’t taking action to address the matter, the IRS may place a lien on assets or levy wages and bank accounts.

How an Enrolled Agent Can Help:

• Work with the IRS to remove liens and levies.

• Establish payment plans or hardship exemptions.

• Protect assets through legal tax resolution strategies.

5. Errors on Tax Returns

Mistakes on a tax return, such as incorrect income reporting or missed deductions, can result in additional tax liability or delays in refunds.

How an Enrolled Agent Can Help:

• Amend incorrect tax returns to correct errors.

• Ensure accurate filing to avoid future complications.

• Provide guidance on proper record-keeping to prevent future mistakes.

6. Identity Theft and Fraudulent Returns

Taxpayers may fall victim to identity theft, where fraudsters file a tax return in their name to claim refunds illegally.

How an Enrolled Agent Can Help:

• Assist in reporting the fraud to the IRS and resolving the issue.

• Help secure your tax records and prevent future identity theft.

• Guide you through obtaining a special IRS PIN for additional security.

7. Payroll Tax Issues for Business Owners

Businesses that fail to properly withhold and pay payroll taxes can face serious penalties and legal action from the IRS.

How an Enrolled Agent Can Help:

• Review filings for accuracy and, if needed, file amended reports.

• Resolve disputes with the IRS and negotiate settlements.

• Develop proper payroll management practices to avoid future issues.

Conclusion

Regardless of the issue, an Enrolled Agent is a valuable asset to protect the rights of the taxpayer and work for the best possible outcome.  Never face the IRS alone.  Call Steve Perry,EA at Books, Taxes & More at 678-717-9818 or visit our website at www.bookstaxesatl.com and take advantage of our years of experience.