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What Does the IRS Appeals Process Look Like?

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So IRS appeals is supposed to be an independent body that is neutral and that’s designed to resolve disputes with the IRS prior to going to tax collections. In reality Appeals is staffed with a bunch of former auditors and a bunch of former collection agents however we’ve had a lot of positive experiences in the course of Appeals in this firm so I like dealing with appeals. I find the appeals process is generally fair and impartial and generally yields a pretty good result depending on the circumstances. Now the good news with appeals is that the auditor is not involved in the process at all. The auditor has taken

Key Takeaways

  • So IRS appeals is supposed to be an independent body that is neutral and that’s designed to resolve disputes with the IRS prior to going to tax collections.
  • the time to prepare and submit an audit report which gets forwarded to appeals, but you have the opportunity before the case gets to the appeals officer’s desk.

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What Happens If I Owe Money at the End of an IRS Audit?

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So if you owe money at the end of an IRS audit it’s like owing liability on your taxes. You can pay the liability, you could work out a payment plan or you can go into collections and work out a resolution. Generally speaking what happens is the auditor will close the audit. That bill will be an issue and if you don’t appeal that bill, you’ll go directly into collections. The best thing to do is to speak with the auditor and see if you can negotiate a straight handoff to collections. It’s not possible in all cases particularly where the liability is small but if you discuss things with the auditor they may be able to shortcut the process into collections and allow you to work out a resolution of the liability. This also tends to happen in cases where they’re a large audit. The auditor will pass you off to a revenue officer and you’ll start working with that revenue officer immediately to try and collect the liability but in either case if you owe money, don’t worry there’s a lot of things that you can do on the IRS side to mitigate that liability and to work out terms that you can potentially deal with.

Key Takeaways

  • Topic: What Happens If I Owe Money at the End of an IRS Audit?
  • So if you owe money at the end of an IRS audit it’s like owing liability on your taxes.
  • You can pay the liability, you could work out a payment plan or you can go into collections and work out a resolution.

Generally, What Is Brotman Law’s Strategy in IRS Audit?

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Key Takeaways

  • Generally, what is Brotman Law’s strategy in an IRS audit?
  • So when we look at a return in the context of an audit.
  • In doing that and in identifying the areas we think are at most risk, that’s where we devote our focus and attention to the audit.

Generally, what is Brotman Law’s strategy in an IRS audit? So the strategy that we have in the firm for IRS audits is essentially what I call seeing the playing field. It’s really important in an IRS audit because of the way that tax returns get audited, to understand what you’re dealing with going into the audit.

So when we look at a return in the context of an audit. We’re constantly trying to figure out what about this return is special? Why did it get audited? Where does the IRS see the large propensity for an adjustment?

In doing that and in identifying the areas we think are at most risk, that’s where we devote our focus and attention to the audit. We certainly want to prepare for everything, but by focusing on the areas that we believe the auditor is going to focus it on, we can help mitigate a lot of the client’s risk.

Again, the goal is to control the scope of information and to make as good of a presentation to the auditor in order to minimize the time spent in the audit and get out as quickly as possible. We’re trying to maximize efficiency, we’re trying to minimize risk, and we’re trying to conclude the audit as quickly as we can. That’s the way our firm handles IRS audits.

What Is the IRS Collections Process?

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People not paying their taxes is a very serious issue for the IRS. It’s something that we as taxpayers call the tax gap. The IRS collection process is an increasingly serious step of collection measures designed to get people in compliance and make sure they stay in compliance. One of the reasons people complain about penalties and interest so often is they’re a deterrent that the IRS uses to make sure that you don’t owe money on your taxes. When you see liabilities rise by 25, 30, 40 % or even higher, it’s going to make you think twice about not paying your taxes, but the IRS doesn’t just issue penalties and interest.

Key Takeaways

  • People not paying their taxes is a very serious issue for the IRS. It’s something that we as taxpayers call the tax gap.
  • The IRS starts by taking increasingly serious actions such as garnishing your wages, levying your bank accounts, putting liens against your property and a whole host of other measures designed to force you back into compliance.

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What Are my Options If I Owe More Money Than I Can Pay to the Government?

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So assuming that you can’t full pay your liability, you have a couple of different choices. First if you only need a temporary solution, you can request the IRS give you up to a hundred and twenty day extension to pay your taxes. The IRS will usually do so with little fuss. If you need more than that, the IRS is going to mandate that you get on a payment plan:

Key Takeaways

  • So assuming that you can’t full pay your liability, you have a couple of different choices. First if you only need a temporary solution, you can request the IRS give you up to a hundred and twenty day extension to pay your taxes.
  • what we call an installment agreement. The IRS is going to want to see measurable progress towards paying off your liabilities based on your financial circumstances and the amount that you owe.

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Will I Go to Jail If I Owe Money to the IRS?

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Key Takeaways

  • Topic: Will I Go to Jail If I Owe Money to the IRS?
  • The answer is generally no, the IRS doesn’t throw people in jail just because they owe money in taxes.
  • Rather the way the IRS deals with issues is by taking an increasingly serious set of collection actions designed to get you back in compliance.


The answer is generally no, the IRS doesn’t throw people in jail just because they owe money in taxes. Rather the way the IRS deals with issues is by taking an increasingly serious set of collection actions designed to get you back in compliance. When people owe money to the IRS, jail time only comes into play when they’re willfully avoiding their obligation to pay and so as long as you’re taking action to get in compliance and aren’t trying to do things to subvert the IRS, you’re probably not going to go to jail for your liability. However, even with jail off the table, civil collections is not a fun place to hang out so it’s best to resolve your issue as quickly and efficiently as possible.

How Much Is it Going to Cost for Brotman Law to Defend Me in the IRS Collection Process?

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In the IRS collection process, there’s a lot of answers to that and obviously my answer in terms of cost is going to be very fact dependent on how much you owe the IRS and what the situation is and whether or not you have a local agent chasing you and so on and, so forth. But I’ll generally say this. It’s situations where we can get our head around the issue, just pretty much every one of them and we formulate a plan in place, the steps to resolve that plan are usually not that bad. Resolving IRS collections is pretty straightforward because the IRS uses a formula for resolving collections matters in terms of what they’ll accept or not accept. If you understand that formula you can understand where the cracks are and you can navigate around it to the benefit of the client but the reality of the situation is, as I usually tell my clients, how much do you want to pay the IRS and how much could you pay them if you absolutely had to? So between those two numbers we usually get a range and the more reasonable

Key Takeaways

  • the client is willing to be with the IRS, and some are not willing to be reasonable, but the more reasonable it is, generally speaking, the closer and lower cost it will be to deal with the issue.
  • I like to take the position that IRS collection cases are a marathon and not a sprint so the idea is I need to be actively working with my clients to conserve their resources to make sure that we’re doing the best we can to get them over the finish line.

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Generally, What Is Brotman Law’s Strategy in IRS Collection Cases?

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Key Takeaways

  • Topic: Generally, What Is Brotman Law’s Strategy in IRS Collection Cases?
  • Generally, what I tell my clients is “throw whatever the IRS wants out the window and let us focus on you and your situation.
  • There is a certain amount that you are going to need to provide for yourself, to provide for your family, and to live the life that you’re accustomed to living.

Generally, what I tell my clients is “throw whatever the IRS wants out the window and let us focus on you and your situation. There is a certain amount that you are going to need to provide for yourself, to provide for your family, and to live the life that you’re accustomed to living. And once we figure out a way to sustain that or sustain that as much as reasonably possible, then we can worry about massaging the IRS into the equation. Ultimately, IRS Collection cases come down to two basic decisions.

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The Different Steps in the IRS Collections Process

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There is a lot of confusion among many of my clients about the IRS collections process and what actions the IRS is able to legally take against the taxpayer. People who owe see a series of increasingly threatening letters and I often get panicked phone calls from taxpayers who think that the IRS is going to take their house because of the $5,000 balance they have accumulated. 

Key Takeaways

  • There is a lot of confusion among many of my clients about the IRS collections process and what actions the IRS is able to legally take against the taxpayer.
  • To help soothe fears, I wanted to trace the lifecycle of a balance due to the IRS in order to better educate you on exactly how the IRS collections process works.
  • Generally, it takes approximately four weeks for the IRS to process a current tax return and eight weeks for the IRS to process a return for an older year. In some cases, however, there are a number of things that may cause a delay in a return being processed.

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How a Tax Attorney Can Help With Your Income Taxes

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Most of the time, taxpayers can handle personal income taxes without too much trouble but there are times when a tax attorney can be either a handy resource or a required partner. 

Key Takeaways

  • The IRS vs. The FTB
  • Two Big Reasons to Hire a Tax Attorney
  • When to Hire an Attorney
  • Frequently Asked Questions About Tax Attorneys
  • What Is the Difference Between a Tax Attorney and a CPA?

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Brotman Law Featured in Inc. Magazine - Fastest Growing Law Firm in California