Lloyd Conley, MBA, EA, The Woodlands, TX helps taxpayers who have civil issues with the IRS; such as Collections, non-filing, penalties, non-payment, Trust Fund Penalties, payroll tax issues, etc.
Many taxpayers ignore mail from the IRS! Yikes!!!!!!!!!!!!!!!!Not a good idea!
A few years ago, a lady came to me the day before Christmas Eve. She was a real estate agent who had taken all the wrong advice about deductions from other real estate agents …. who had not been caught yet! (OOOPS! I know, right!) The IRS letter in her hand was the ominous “90-Day Letter”! The IRS was collecting approximately $25,000 in taxes, penalties, and interest! In tears, she complained that her husband was threatening to divorce her! What could she do???!!!! Unfortunately, the answer was nothing! Here’s why! The “90-Day Letter” was 80-days old and it was Christmas, to be followed by New Years! There was no time left to do anything. You see the ominous “90-Day Letter” informs the taxpayer to pay or take her case to tax court. Here’s the sad part. The IRS had to start writing to her with the required 30-day and 60-day notices about a year and a half year before the “90-Day Letter”. She wasted a year and a half! If she had just brought her first letter in on time we could have corrected her errors, abated penalties and cut her losses! Sadly, this is so common!
What should a taxpayer do with an IRS letter you ask!?! Here’s a step by step plan of action:
1. Open it!
a. If it’s a benign information notice, no worries!
b. If it requires a response, deal with it ASAP! Don’t ignore it! You’re on a legally prescribed timetable! By law, the IRS must give you time to respond to their inquiries, usually in 30 Day or 60 Day increments. Failure to get a response logged into their database on time will result in a required escalation. Eventually liens and levy’s! Therefore, don’t delay! It takes time to properly respond to the IRS. Don’t waste it.
2. If you know what to do, do it immediately! If not, see a professional who can advise you and represent you before the IRS: Enrolled Agents, CPAs, and Attorneys are licensed to do so.
3. Follow the professional’s instructions!
4. Never represent yourself before the IRS!
a. You’ve probably heard the old wisdom that “the attorney who represents himself in court has a fool for a client!” Calling the IRS yourself is like that, only worse!
b. You don’t know your rights as a taxpayer and the IRS doesn’t care. It’s they’re job to collect money, not represent or inform you.
c. Get someone who knows your rights and how to cut your losses! Maybe even eliminate them!
Contact Lloyd Conley EA
10603 W Sam Houston Pkwy N, Ste 225
Houston, TX 77064