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IRS issues - need professional help


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We talking earth shattering amount or all they are looking for is documentation??

I'm of the club of just pay it as IRS seems to never lose even if you are in the unicorns that sometimes win a case (if professionally represented... deduct that huge amount here) they'll get theirs and then some at some point.

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8 minutes ago, MonkeyDoughnut said:

We talking earth shattering amount or all they are looking for is documentation??

I'm of the club of just pay it as IRS seems to never lose even if you are in the unicorns that sometimes win a case (if professionally represented... deduct that huge amount here) they'll get theirs and then some at some point.


It’s significant 

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Before Xmas, I got a letter from the IRS saying they never received my 2020 return even though they cashed the check that was in the same envelope. At least they credited my account with that payment. I mailed another return and the odds of them losing it also is probably 50/50.

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15 minutes ago, DalTxHornFan said:

What is their (alleged) basis for their claim of underreporting?  Mismatched 1099s, K-1s, W-2s, real estate sales, etc?   Surely the IRS notice gave some of those kinds of details.

Yep, they will usually state why they believe you owe more money.  Those little letters from the IRS are about the scariest thing that can come in the mail.

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46 minutes ago, Chewbacca said:

Yep, they will usually state why they believe you owe more money.  Those little letters from the IRS are about the scariest thing that can come in the mail.


correct, hence I’m looking for people that deal with this professionally 

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I got something a few years ago saying we didn’t file for like 3 years in a row along with a bill for many thousands of dollars including years of penalties and interest accrued between filing time to letter receipt. Even though we received and deposited tax returns all of those years. By the time we dug everything back up, couldn’t make them match the ones done contemporaneously because some paperwork couldn’t be found, so it ended up costing like 5k. 
 

then a couple of years ago I started getting correspondence from seedy irs help places saying scary shit would happen if I didn’t take care of my tax lien and they could help. I didn’t know what they were talking about but the marketing all came in at once so I wondered if there was a public list of some sort. Sure enough the irs put a 10k tax lien on my house even though I was never notified of it or even the supposed debt owed.  They just didn’t like some deductions or some shit. Ended up paying that in full when I sold the house. 
 

all we’ve ever done is follow the tax prep software. Feels like mob extortion. 

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14 minutes ago, tx 3 putt said:


correct, hence I’m looking for people that deal with this professionally 

I hear you.  Just make sure whoever you hire has a lot of experience dealing with the IRS on behalf of clients.  If you were in CO, I could give you a couple names.

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12 minutes ago, msbesq said:

An enrolled agent specifically represents people with IRS issues. many CPA's don't deal with the IRS directly.

 


thanks, I was about to reach out for tax lawyer recs but now I know that I need an enrolled agent 

Edited by tx 3 putt
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1 hour ago, Chewbacca said:

Yep, they will usually state why they believe you owe more money.  Those little letters from the IRS are about the scariest thing that can come in the mail.

No kidding... I've had kids in college last few years and every year without fail I get an IRS "letter" whereby my heart rate increases and I think WTH did I not do correctly.. only to open it and find its an acknowledgement of my FAFSA PIN update (financial aid tax info electronic pulling ability for the non-college kid crowd).

Beats getting called by an IRS crimimal investigator requesting a meeting... had that too... about someone else thankfully...(work in IT... they know where to find people who know everything about others :) )

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11 minutes ago, msbesq said:

An enrolled agent specifically represents people with IRS issues. many CPA's don't deal with the IRS directly.

 

I'm a recovering CPA.  I understand what EAs do.  But many of them do not have the tax knowledge that CPAs do as the requirements to become an EA are much lower than a CPA.  That's why you find a CPA who deals with the IRS a lot.  That's who I use and whenever I have a problem, they deal with it for me.

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You want someone, either an Enrolled Agent or a CPA, who works in tax controversy. Ways to check include looking at their website. Are they an NTPI fellow? Are they a USTCP (United States Tax Court Practitioner)? Are they ex-IRS? 

Edited by Apep
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Just to clarify: Most CPAs and EAs are lost when it comes to tax controversy. Even those CPAs that work in tax rarely specialize in controversy work and rarely seek it out. EAs, to be frank, are usually just glorified tax return preparers and I wouldn’t even call them CPA-lite in that context. However, a significant subset of EAs are either ex-IRS personnel who now work for the other side OR return preparers who became an EA so that they have the same rights as attorneys and CPAs when it comes to tax controversy work. You’re more likely to find an EA that does tax controversy than a CPA, because so many CPAs don’t even do tax work. And if you find a USTCP, they can take you the distance, all the way into Tax Court (if necessary), attorney not required. 

 

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3 hours ago, Chewbacca said:

You need a CPA.  EAs are like CPA-lite.

EA’s aren’t CPA anything, you just have to pay the IRS and do some education on the tax code. Every bookkeeper in my firm is an EA at this point. You don’t need to understand much about the actual tax code to be an EA. 

PM me what exactly they are saying you underreported and I’ll tell you whether to hire someone or what to do to fix it yourself. It has to be a 1099 issue with that kind of tax due.

If you deducted your sugar babies as employees, you’re on your own.

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59 minutes ago, Apep said:

You want someone, either an Enrolled Agent or a CPA, who works in tax controversy. Ways to check include looking at their website. Are they an NTPI fellow? Are they a USTCP (United States Tax Court Practitioner)? Are they ex-IRS? 

You don’t need any of that depending on what the issue is. Most of the time it is a simple fix on a notice, controversy issues typically come up under examination.

As far as former IRS EA’s, good luck with that bunch. Most IRS auditors that work in individual tax enforcement are low end tax preparers who couldn’t make it on their own or topped out where they were. They have some really knowledgeable people on the business side, individual not much. The head of their local criminal division worked for me at one time, he was a horrible practitioner and the fact he carries a gun now concerns me.

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In my observation, CPAs that are involved in individual tax preparation will handle disputes with the IRS over your return that they prepared.  Which makes a lot of sense because, they prepared it, and know the information on which it was prepared and are prepared to defend any positions they took or rectify mistakes, etc.  Or help you come to Jesus over the lies you told them.

Finding someone to handle a controversy involving a return they didn't prepare may be more difficult.  And to handle it competently, more difficult still.

Brew is the man when it comes to surly individual and small biz free tax and 'countin advice.  I would take him up on his offer.

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I don't know why people are so scared of the IRS.  In my experience, everyone that works for the IRS is incompetent.  Yes, they have tremendous power, but if you get to the point where they start wielding it, then you are a royal fuckup.  I got a letter this year saying I owed them $3,500 plus interest and penalties for my 2019 return.  The letter said that I had understated my income and overstated my mortgage interest deduction.  I went back and reviewed my return and discovered that they were correct about the income.  I had inadvertently omitted a 1099 from my return.  However, they were full of shit about the mortgage interest because it was correct on my return.  I wrote them a nice letter explaining that the mortgage interest deduction was correct and provided them with overwhelming documentation for it.  I completely ignored the 1099 issue.  They sent me a nice letter back acknowledging the documentation that I sent and I never heard from them again.

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On 1/4/2022 at 3:51 PM, tx 3 putt said:


thanks, I was about to reach out for tax lawyer recs but now I know that I need an enrolled agent 

let me know if you find one as I need one too, maybe.

I got the same letter about 2019 taxes.

I called the lawyer (IRS) contact on the letter and emailed. They actually picked up the phone...The IRS lawyer admitted but said would deny it that they completely are fucked. Way backed up and lots of misfiling, etc.

Quietly recommended to continue to protest, etc.

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23 hours ago, pronghorn said:

let me know if you find one as I need one too, maybe.

I got the same letter about 2019 taxes.

I called the lawyer (IRS) contact on the letter and emailed. They actually picked up the phone...The IRS lawyer admitted but said would deny it that they completely are fucked. Way backed up and lots of misfiling, etc.

Quietly recommended to continue to protest, etc.

Shark Tank Writing GIF

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