Tax Notice Resolution

If you have received a tax notice or audit letter in the mail we can help by reviewing the notice, determining what your options are, and handling the correspondence and communication with the taxing authorities on your behalf.

IRS Tax Notice Representation

Notice CP2000

We can help if you received a Notice CP2000 which is one of the most common notices received by taxpayers that includes a summary of proposed changes. These notices are entirely computer generated due to data matching issues but responding by the deadline or requesting additional time to respond by the stated deadline is important for ensuring the best outcomes remain available when deciding on how to respond. Typical notice responses may include full agreement, partial agreement, disagreement, or require an amended return in response due to additional findings not listed in the original notice that need further adjustment. We like to do a full review of the tax return and supporting documents to verify the contents of the letter and look for any additional items not mentioned in the letter. Sometimes calling the IRS on your behalf may also be needed for further response guidance or assistance.

Notice CP14 or Notice CP501

If you received a Notice CP14 or CP501 for an unpaid balance due we can help. Often times settling a balance due may not have been done immediately if funds were short, you need more time to gather funds, or need to set up an installment agreement. Common responses may involve a short-term payment plan to pay in full within 180 days or setting up an installment agreement that best fits your current cashflow needs. If you happen to set up an installment agreement, we often recommend conducting a tax planning engagement to help with managing your cash flow and planning for future tax balances or refunds. Any future refunds while on an active installment agreement will automatically be applied to your balance due and will not count towards your monthy required payments. Any future balance due amounts would require payment in full or a payment plan modification request made to roll the new balance due amounts into an existing payment plan at the cost of lower cashflow and additional ongoing interest.

Other IRS Notices

Other common notices you may have received that we can help with include:

CP11 - Miscalculation - Balance Due

CP12 - Miscalculation - Refund Due

CP23 - Payments or Credits Mismatch

Letter 12C - Incomplete or Missing Info

Letter 5071C - Identity Verification

CP59 - No Record of Filed Tax Return

CP3219A - Notice of Deficiency

CP504 - Notice of Intent to Levy

 

State Tax Notice Representation

If you received a tax notice or audit letter from the State, we can help you determine what your response options are, what records to gather, compile the response, and handle ongoing correspondence. Often times States operate on shorter timelines, may offer less flexible payment options, and carry a higher rate of penalty for unpaid balances or noncompliance. Under some circumstances, state issues can impact your federal taxes also and that is something that we would also review to help you get ahead of any cascading effects.

Tax Audit Representation

We can help taxpayers with either of the three types of tax audits types which are a Correspondance Audit, Office Audit, or Field Audit. If you were selected for an IRS audit you likely received a Letter 566 or Letter 2205 which may include Form 886-A Explanation of Items or Form 4564 Information Document Request included with it. Audits can vary in complexity by covering specific items on a tax return for a single year or covering the entirety of a return and spanning over multiple years. Each audit type helps us to understand how the audit will be conducted while the Letter 566 or Letter 2205 and Form 886-A or Form 4564 will help with outlining the items under review and the documentation needed to conduct the audit properly.

Correspondance Audit

Correspondence Audits may be entirely resolved by mail by can expand and become an in-person office or field audit. A correspondence audit typically will focus on specific items on a tax return that need further clarification or supporting documentation along with answers to questions that may be related to those items. About 75% to 85% of tax audits fall into the correspondence audit category.

Office Audit

Office Audits require an in-person meeting with an IRS examiner at a local IRS office. This type of audit is typically more in depth and having someone to represent you can help with gathering, organizing, presenting, and discussing your case with the IRS examiner. Office audits represent about 20% of tax audits and the more common in-person audit types.

Field Audit

Field Audits also require an in-person meeting with an IRS examiner; however, they involve a scheduled visit to your home, place of business, or a representative's office. These audits are often the most in depth, more likely to cover multiple tax years, and can result in multiple visits. Having a representative for a Field Audit is highly recommended and can help with keeping your business operating smoothly while undergoing the audit.