September 2, 2010

10 Tips on IRS Bills by IRS Attorney near 33611 part 2

Today we continue with our article on 10 tips on handling IRS bills. We consider that happens if your case is not resolved in the IRS Appeals Office.

5. Respond to a Notice of Deficiency

If you do not respond to an Examination Report or if your protest at the IRS Appeals Division fails, then you will receive a Notice of Deficiency. This Notice gives you 90 days to respond to it (the deadline is prominently displayed on the first page of the Notice). When you receive a Notice of Deficiency, only one response is permitted. You must file a Tax Court petition in the US Tax Court clerk’s office in Washington D.C.

Again, it is advisable to engage an IRS attorney to handle your case for you. If you choose to represent yourself, make sure your case is simple and involves less than $50,000 in disputed taxes. There are special procedures available to taxpayers who represent themselves where the amount of taxes in question is below $50,000. If not, you should engage an IRS attorney.

6. Be Tried under a Tax Court Judge

Upon filing a Tax Court petition at the US Tax Court, you will have your case heard by one of the 19 tax court judge. The judges travel to various federal courthouses across the country to conduct trials. You may choose which city to have your case heard in. There is no jury involved and Tax Court rules and procedures are streamlined throughout the country. You can present to the court your own witnesses and present your case on ‘stipulated record’ where you and the government agree on certain facts.

7. Transfer Back your Case to the Appeals Division

When you file a Tax Court petition, it doesn’t necessarily mean that your case will be decided in tax court. You can have an IRS attorney deny all the petition says and request for your case to be transferred back to the IRS Appeals Division.

8. Request for Extension where Applicable

Depending on what type of notice you receive, in most cases the IRS allows requests for extensions. But in the case a Notice of Deficiency, no extension is allowed (the time for you to file a petition is fixed at 90 days).

If you request for an extension on any other notice, always do so in writing and have it acknowledged by the IRS.

9. Undo IRS Actions

If the IRS imposes an action like a lien on your property or bank account, you can apply for this action to be lifted. But most of the time, these actions will require professional ability so it is advisable to engage an IRS attorney.

10. Pay Up then Sue

Let’s say you miss the 90 day deadline to file your petition in the Notice of Deficiency. You will not have your case heard in tax court and will have to pay the amount of taxes the IRS assesses.

In such a case, you can still seek redress from the federal district court or the US Claims Court. But you need to pay the taxes first then claim it back later. If your request for refund is denied, you can take legal action to obtain your refund. Depending on the outcome of the lawsuit, you might have to pay a portion of the tax liability.

These are some of the things you should consider when faced with an IRS Notice. The most important Notice you would receive is the Notice of Deficiency. However there are a myriad of other notices and making the right decision in each one is important.

That is why we recommend you seek professional help from an IRS attorney. Call us at (813) 229-7100 for a free consultation or visit http://www.getirshelp.com.