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I have a certified letter from the IRS, should I go pick it up?

I have a certified letter from the IRS, should I go pick it up? YES, YES, YES!!!  I have clients ask me this question all the time.  My answer is always the same.  The IRS sends various types of letters out every day.  Some letters request information, some are for a balance due and sometimes the IRS may just be letting you know they need more time to process your return. When you get a certified letter that usually means there is a problem and it needs to be addressed.  This is not the first letter the IRS sends for the particular situation.  The IRS...

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What is an offer in compromise?

What is an offer in compromise? An offer in compromise is an agreement with the IRS to settle your tax debt for less than the full amount you owe.  You may qualify if you can’t pay your full tax liability or doing so creates a financial hardship.  The IRS considers several factors to determine if an offer is acceptable including your equity in assets, your income and expenses. In order to be eligible for an offer in compromise you must be current in your tax filings.  This means all returns up to the prior year must...

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What is reasonable cause for penalty abatement?

What is reasonable cause for penalty abatement? Reasonable cause is a summation of all facts and circumstances related to your particular situation.  If you use ordinary business care and prudence and are still unable to meet your federal tax obligations you may have reasonable cause. Some of the reasons IRS will consider as reasonable cause for late filing of a return, late payment of the tax due or late payroll deposits include fire, casualty or natural disaster.  In Texas we have had several of these occur in the last year or two.  You...

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What is tax representation and do I need tax representation?

What is tax representation and do I need tax representation? Tax representation is the business of representing a taxpayer or taxpayers before the IRS for unpaid taxes or unassessed taxes, penalties and interest for a personal, business or payroll tax return(s).  Over the last ten or fifteen years the tax representation business has flourished.  Unfortunately not all companies provide quality service.  Over the last couple of years the government has shut down several national tax representation businesses.  These companies would offer to file an...

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