IRS Collections Strategy

Knowledge is Power

At Brotman Law, we focus on providing as much as we can for our clients. Our strategy pages give you a detailed look at how we approach each type of tax issue – so you can understand what to expect when you work with us.

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Installment Agreements and the IRS: Settling Your Debt

Whether you misjudged the amount due or you just can't pay, the IRS is still going to want their money. Installment agreements can lessen the pain.

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How to Hire a Tax Attorney to Deal with the FTB

Are you looking for some practical advice on hiring a tax lawyer to handle your California Franchise Tax Board issue? Brotman Law specializes in FTB and all California tax matters.

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The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 4

Used car dealers are not required to maintain certain types of records. This ends up being a major pitfall for most independents. Poor record keeping practices can land you in hot water once a tax audit rolls around.

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The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 3

Are you a car dealer facing a California sales tax audit? Failure to apply the appropriate special district rate can result in collecting the wrong amount of sales tax. Auditors routinely look here first for sales tax mistakes.

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The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 2

Are you a car dealer facing a California sales tax audit? In Part 2 of our complete guide, you'll learn how one improper tax assessment can cost you many times over.

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The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 1

Are you a car dealer facing a California sales tax audit? Start reading! Part 1 of our guide discusses how the CDTFA selects car dealers for audit.

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IRS Offer in Compromise: What to Do When They Are Rejected – Part Two

Successful offer in compromises begin at the preparation level by putting together a package that is well-organized and gives the service every opportunity to accept your offer in compromise.

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IRS Offer in Compromise: What to Do When They Are Rejected – Part One

IRS offer in compromises can be returned for a bankruptcy filing, failure to include the entire application fee, missing information, additional liabilities being accrued while the offer is being considered, and many other reasons. This is not the same as a rejection, but can be a costly mistake.

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How to Work with Brotman Law on Your IRS Collections Case

If you are dealing with any kind of issue with the IRS, it's in your best interest to seek out an experienced legal firm that specializes in taxes — not a CPA.

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Employment Development Department Installment Agreement – Part One

The EDD recognizes that sometimes it is in the best interest of the state and a California taxpayer that they allow an installment agreement to liquidate an amount owed over a period of time.

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How to Get Free Taxpayer Assistance

Sometimes, even low cost legal representation costs too much and you need free taxpayer assistance. This article explains where and how to get it.

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What Is an Employment Development Department (EDD) Audit?

The key to any Employment Development Department audit is to make certain all records submitted are relevant to the EDD. Any records that do not pertain to employment-related issues are not relevant.

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How Long Does the IRS Have to Collect on an IRS Balance Due?

Generally, the IRS will have ten years to collect a liability from the date of assessment. After this ten-year period or statute of limitations has expired, the IRS can no longer try and collect on an IRS balance due.

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Can Currently Non-Collectible (CNC) Status Stop the FTB?

Under certain circumstances, you may be eligible for an IRS and FTB program in which your account can be labeled as Currently Not Collectible. Read more to find out about what those circumstances include.

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How to Request an EDD Installment Agreement

If a taxpayer becomes delinquent in the payment of amounts due, the Employment Development Department (EDD) will take appropriate action to collect the full amount immediately.

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California Payroll Tax: SUI, ETT, SDI & PIT Employer Guide

California payroll tax, SUI, ETT, SDI, and PIT guide. How much are payroll taxes in California? What are the employer and employment laws in CA state.

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The Audit Process Step by Step

Here's what happens from the moment you receive an audit notice to resolution:

1. Notice received — The IRS sends a letter explaining what they're examining and what documentation they need
2. Power of Attorney filed — We sign Form 2848, which means the IRS talks to us, not you
3. Document review — We review every document before anything goes to the IRS. We provide exactly what's needed — nothing more
4. Examination — The IRS reviews your records. For office and field audits, we attend all meetings in your place
5. Proposed adjustments — If the IRS wants to make changes, they issue a written proposal. We review it line by line
6. Negotiation or appeal — We challenge anything we disagree with. If we can't resolve it at the exam level, we take it to appeals
7. Resolution — Case closed. We make sure you understand the outcome and what it means going forward

Why You Need Professional Representation

Here's the reality: anything you say to the IRS can be used against you. Even an innocent statement can be misinterpreted, taken out of context, or used to expand the scope of your audit.

Your CPA probably filed your return. That's great. But filing a return and defending one are two completely different skills. You wouldn't send your dentist to perform heart surgery — the same logic applies.

A qualified tax attorney knows IRS procedures inside and out, understands the legal standards the IRS must meet, and knows exactly how to position your case for the best possible outcome.

Appeals & Next Steps

If you disagree with the audit results, you have the right to appeal. The IRS Office of Appeals is independent from the examination division, and they settle the majority of cases they hear.

We've won over 100 appeals by building cases that are thoroughly documented and legally sound. The key is presenting a clear, well-organized argument that makes it easier for the appeals officer to rule in your favor.

If appeals doesn't resolve it, the next step is Tax Court. We're prepared for that too, but in our experience, most cases settle well before they get to trial.

How to Prevent Future Audits

Once your audit is resolved, the last thing you want is another one. Here's what we recommend to minimize your risk:

• Keep meticulous records — especially for deductions and business expenses
• Report all income — even if you didn't receive a 1099
• File on time, every time
• Use actual calculated figures rather than round numbers — while not a major audit trigger on its own, it's a best practice that signals accuracy in your records
• Work with a qualified tax professional who understands your situation
• Consider a proactive tax strategy engagement to optimize your structure and reduce risk