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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.

Why Should I Hire Brotman Law to Defend Me in My IRS Audit?

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Key Takeaways

  • Topic: Why Should I Hire Brotman Law to Defend Me in My IRS Audit?
  • We have a long track record of successfully defending our clients in IRS audits.
  • We’ve got a really good measure of technical skill at the firm and can deal with things that are extremely complex.

We have a long track record of successfully defending our clients in IRS audits. We’ve got a really good measure of technical skill at the firm and can deal with things that are extremely complex. We can make simple audits go away very quickly. Even if I don’t have any magic beans in my desk and I can’t make your liability just magically disappear, the strategy and the thought and effort that we put in and the preparation work tends to yield very positive results for our clients. We’re very comfortable moving through the tax procedure chain and dealing with IRS examination at all levels. There’s a certain strategy to an audit because the audit and a tax return will ultimately tell a story and the question that you have to ask yourself is who’s going to tell that story. If you get out in front of an audit and you put the investment into the preparation, you can usually save yourself a lot of time, money and headache and mitigate any penalties that are associated with the audit. Now obviously that’s on a case-by-case basis, but we have a long track record of results. We’re really good at advocating on our client’s behalf and we’re really good at getting people out of audits for less liability than they would have going in it by themselves.

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.

What Do I Do If I Have Not Filed Taxes in Multiple Years?

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So the first thing that we do when we have a client who comes in as a non-filer and may be a few years behind on their taxes is we do what we call an analysis. We go to the IRS, we get copies of their entire file and we go through the client’s wage, income and account history to determine what income they had in what years, at least what the IRS has on file, and what we’re seeing in their account to determine whether or not they have any liability associated with that. From there we recommend and outline a plan of action for the client. A common misconception is that non-filers have is that you haven’t filed multiple years of tax returns, so you have to go through and file every single tax return for every single year. That’s simply not the case, so one of the reasons we do the analysis is to determine exactly what years the taxpayer has to file for, exactly what type of income that they’re looking at. The next thing we do is we get all that information in an easily readable form over to the client’s CPA so that they can prepare the returns that are needed to solve the issue. Once those returns get prepared, signed and filed with the IRS, eventually, about six weeks after processing,

Key Takeaways

  • So the first thing that we do when we have a client who comes in as a non-filer and may be a few years behind on their taxes is we do what we call an analysis.
  • the client will start receiving bills and then once we understand how much the client owes with penalties and interest, we can start putting a collection resolution in place with the IRS.

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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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Why Should I Hire Brotman Law to Defend Me in My IRS Collections Matter?

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The first reason I would give you is leadership. We have a lot of experience in dealing with the IRS, anything from a small payment plan to a complicated revenue officer matter with millions and millions of dollars in liability. We handle all aspects of collections, I am going through the offer and compromise process to negotiating an appeals to doing collections you process appeals, to even dragging things in the tax court when we have to. The fact of the matter is because of our range of experience we know the playing field and because we know the playing field we know how to protect our clients. Our firm takes a very client focused approach first. I understand that you need to provide for you and your family.

Key Takeaways

  • The first reason I would give you is leadership. We have a lot of experience in dealing with the IRS, anything from a small payment plan to a complicated revenue officer matter with millions and millions of dollars in liability.
  • I understand that you have basic needs. I understand that you are not willing to sacrifice the needs of your children in order to placate the government.

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