The first thing we do when a new IRS Tax representation client in Houston, TX or Lufkin, TX retains our services is call the IRS for a tax transcript. Why is that? Because we need to know how much the client owes, when the tax liablity was assessed and what returns have been filed and/or are missing. And the tax transcripts give us all that information!
The balance due on a client's account determines which route we need to take when seeking to resolve the IRS tax debt. Is the balance over $10,000? Will the or has the IRS filed a NFTL (Notice of Federal Tax Lien). Is the balance under $25,000? Is the client eligible for an Installment Agreement?
The date the IRS tax liability was incurred will allow us to analyze how much time remains on the IRS's 10-year collection statute. The expiration date of that statute helps us decide which course of action is best. Should we file an Offer in Compromise (OIC) or try to get the client into CNC (currently not collectible) status?
Has the taxpayer filed all tax returns or are there some returns outstanding? Unless the taxpayer is in compliance with all tax filings the IRS will not accept an OIC or Installment Agreement. The transcript lets us know their compliance status and start working to get them in filing compliance if they are currently delinquent.