Knowing the tax law is crucial in resolving every type of tax problem. With the knowledge and tax research skills I gained from a Master in Taxation
Program, I successfully helped customers in resolving their tax problems and minimized their tax bill under the law.
Tax law is very complicated and drenched with ambiguity, which can be used to shield you from IRS or state examination. Also, the IRS or state tax agents who examine your tax return may not be tax experts and may make mistakes. It's crucial to hire a tax professional to help with your tax audit. More often than not, taxpayers end up owing far less than the amount assessed by the IRS under representations.
Many people buy TurboTax software to do their taxes on their own. However, if you have some complicated issues, such as rental activities, capital loss carry over or net operating loss carry over, you would mostly make mistakes on your tax returns when you do your own taxes. I saw many people make mistakes and pay more taxes to the IRS. That is why I offer free review of customers' prior year tax returns.
The IRS (or state) has an appeals system which is separate from and independent of the IRS Examination (audit) Offices. If you do not agree with the results of the IRS audit or other adjustments, you can file an appeal with your local Appeals Office. Most tax disputes were settled within this system, which saved both taxpayers and the IRS court costs.
The appeals process is a necessary step you have to go though before you are allowed to pressent your case to the tax court. The Court of Federal Claim and District Court will accept your case even if you did not go through the appeals process, but they may not be experts in tax issues.
Penalty abatement may be granted if the taxpayer did not know and had no reason to know that their taxes were filed incorrectly. In some cases, return preparers might take false deductions without informing their clients in order to attract more customers. It is easy to get the relief when taxpayers filed all tax returns and paid prior year taxes on time.
An offer in compromise is an agreement between the taxpayer and the IRS (or state) that settles a tax liability by paying less than the amount owed. The IRS will generally accept an OIC when it is unlikely that the tax liability can be collected in full within the collection period, or when a legitimate doubt exists that the taxpayer owes part or all of the assessed tax liability.
Due to the economic recession, the IRS gave more generous rules on OIC to help financially stuggling taxpayers in May 2012.
You can be relieved from paying back tax, interest, and penalties if your spouse (or ex-spouse) improperly reported or omitted items on your joint tax returns
without inform you and additional taxes were assessed. Or, your spouse did not pay his (or her) fair share of the taxes on your joint return but the IRS (or your state authority) comes after you to
collect the tax owed. People usually file innocent spouse relief after they divorce or live apart from their spouse.