Strategic Guidance From a Tax Strategist

Strategy is about order and fit. When someone has an IRS problem, there are usually several possible answers, and the wrong sequence can cost real money. A tax strategist looks at your notices, filed and unfiled years, income, expenses, assets and how much you can realistically pay, then decides what to do first. That could mean filing two missing returns before asking for an installment agreement, or requesting penalty abatement before an Offer in Compromise. After the problem is settled, the same thinking goes into planning next year.

Yes. Our founder is an IRS Enrolled Agent, federally licensed by the U.S. Treasury with unlimited practice rights before the IRS. Once you sign Form 2848, we can speak with revenue officers, examiners and Appeals for you in audits, collection cases and other federal tax matters, for individuals and for businesses.

Don't wait on it. Collect the IRS letter, your last couple of returns, recent pay stubs and bank statements, and a list of the bills you have to pay each month. Then call. We'll identify where you are in the collection process and contact the IRS about a release, a temporary hold, a payment arrangement or hardship status. Some deadlines, like the 30 day window to request a Collection Due Process hearing, can't be recovered once they pass.

It's possible through an Offer in Compromise, but only if the math works. The IRS compares what you owe with your reasonable collection potential: income, allowable expenses, equity in assets and future earnings. You must be current on returns and any required estimated payments or deposits. We work through that calculation with you up front, because preparing a full offer that has no chance just burns time and the application fee.

You pay the balance in monthly amounts over time. Individuals who owe $50,000 or less in combined tax, penalties and interest can often get a streamlined installment agreement without a detailed financial statement; larger balances usually require one. You need to keep filing and paying current taxes on time, and interest and penalties continue until the debt is paid. Part of the strategy is choosing a payment that won't default.

It can lower the balance, sometimes substantially, but the tax itself stays. The usual routes are First Time Abate relief, which needs a clean recent history, and reasonable cause, which needs a documented explanation like a serious illness or disaster. When a penalty comes off, the interest charged on that penalty is reduced too. Interest on the underlying tax generally remains.

The IRS may file a substitute return for you, built from W-2 and 1099 data with none of your deductions or business expenses. That return almost always overstates what you owe, and penalties pile on top. Filing accurate returns for the missing years fixes the number and is normally required before a payment plan or offer can move forward. We prepare them with the rest of the resolution in mind.

It varies too much to quote a timeline without seeing the file. A simple payment plan can come together relatively quickly. An Offer in Compromise, an audit appeal or a case with several missing years takes much longer, and part of that depends on how fast the IRS responds. What you control is getting records in promptly, answering IRS requests on time and staying current on this year's taxes. We keep you posted at each stage.