The Examination Process
You are Entitled to Representation
Don't go it alone! By law you are entitled to representation. As an Enrolled Agent, I am authorized by the U. S . government to represent you before the IRS on all administrative tax matters in all 50 states and U. S. territories. Attorneys and CPAs are licensed by the state and are not tested on their tax expertise by the U. S. government. Attorneys and CPAs may or may not specialize in taxation. I specialize in taxation. As a former IRS Revenue Agent with 17 years of examination experience with the IRS, I know IRS procedure and protocol. I have specific tax law education, training and experience in representing clients with federal and state taxing authorities in all types of tax problems and issues.
If I am to appear on your behalf before the IRS on your tax matter, you will need to provide a completed and signed Power of Attorney and Declaration of Representative. This is Form 2848 which I can provide to you. If I am your authorized Power of Attorney, the IRS is required to contact me instead of dealing directly with you. This form is also required if you are represented by an attorney or CPA.
I will deal directly with IRS and state tax officials on your behalf.
Unfiled Tax Returns
If you have unfiled tax returns, you are not alone. There are hundreds of thousands of taxpayers wo have not filed their returns. IRS will file a substitute for return (SFR) on you with the information they have available through receipt of such information as is available on your Forms W-2s and 1099s. These returns do not include any of the deductions you would have been entitled to had you filed your own return. Once they have prepared these returns and assessed the taxes, they can begin collection action. Collection action includes garnishments, levies and liens. If you avoid filing your tax returns and/or avoid responding to IRS correspondence, it will make your situation much worse. Generally, most taxpayers who come forward and get compliant are not subject to criminal penalties or jail time.
.Keeping quiet hoping that IRS will forget about you
.Not filing because it will result in additional interest and penalties
.Assuming you can settle for pennies on the dollar
.Assuming you qualify for an "Offer-In-Compromise"
.Assuming that going to an attorney is the only remedy available to you
.Assuming representation is costly and you cannot afford it
Collection on Tax Liability Owed - 10 Year Statute
While the IRS generally has ten (10) years to collect the taxes once they are assessed certain situations will cause the "suspension" of this time period. This means that no time is charged while the debt is in bankruptcy, in non-collectible status and in certain other situations. As a general example, if there are two years left on the statute and you are placed into non-collectible status for three years, then there is actually five years remaining on the statute. IRS will also protect their interest by filing a tax lien on you and/or your property.