Orange County IRS Tax Lawyer
Contact Us Today

Experienced Orange County IRS Tax Attorney Ready To Fight For You

Orange County IRS attorneyIf you run a company, you know that IRS audits are time-consuming, expensive, and stressful, taking away energy and time from things you should be focusing on. Having an experienced Orange County IRS tax lawyer by your side reviewing your IRS notice is very important and can help you to navigate through your various options. No one likes to receive an IRS audit notice. But it’s important to understand how the IRS is selecting your tax return for audit.

Amended returns

Taxpayers often try to amend tax returns from a prior year as quickly as possible. But, amended returns are highly likely to be audited. The secret is getting a trusted Orange County IRS tax attorney before you make an adjustment to review the tax returns.

IRS computer score

Everything on your return is utilized to give data to the IRS who in turn, scores your return. Your zip code, your occupations, income, and expenses are for the most basic things that will tip the IRS off that there was a generous change in your return or that you are not within the average business-standard. The IRS is overwhelmed and tends to come up short. They choose returns they believe will have the best possibility for a tax adjustment.

A Schedule C with low revenue or high costs

A Schedule C is a page on your individual tax return where your business income and expenses are reported. As a business grows, most CPAs and business/tax lawyers will suggest that a sole proprietor or Schedule C business set up a separate legal entity for legal protection and to reduce your chances of an audit. Most Schedule C taxpayers with revenue or expenses that exceed $100,000 have a higher probability of an audit.

In addition, there are many other ways the IRS selects a return for an audit such as payroll initiatives, tips from ex-employees/ex-spouse/ex-partner, and state agency audits. It is highly advisable that you speak with an experienced Orange County or San Diego IRS tax attorney at Allison Soares, Attorney at Law. Call us today!

IRS Appeals
A lawyer discussing IRS tax to his client in Orange County.

The IRS Appeals Department is comprised of very knowledgeable and experienced professionals. As a business, you have the right to appeal their decision following an audit. There are various ways of appealing an IRS audit and the strategy you take can influence the consequences of your audit. Contact our Orange County IRS appeals lawyer attorney and find out what your options are and what is the best way to appeal an audit decision.

IRS Appeals Process

Not everyone has the right to appeal an IRS audit. There are generally three rules that govern whether you can appeal, and all three must be present. First, you receive a letter from the IRS stating that you have the right to do so. Second, you do not agree with the IRS’s decision with respect to your audit. Third, you did not sign an agreement form sent to you by the IRS.

You’ll also want to consider whether the IRS made an incorrect decision with respect to your audit, and whether that decision was based on a misinterpretation of the law, or if they didn’t apply the law due to a misunderstanding of the facts. Consider also whether the IRS is taking inappropriate collection action against you, or if the facts the IRS used are incorrect. In all these instances, be prepared to clarify and support your position with facts and sounds arguments.

If all those are true in your case, then you may request an Appeals hearing. To do that, complete your appeal and mail it to the address that is included in the IRS letter. You may also want to consider who will represent you in your appeal. You can certainly do it yourself, but it may serve you better to work with an experienced Orange County IRS tax appeals attorney, certified public accountant, or an enrolled agent authorized to practice before the IRS.

Collection Due Process (CDP)

The IRS Collections department comes into play when a person or business owes money to the IRS. Here are some of the ways a person or business can owe money to the IRS: currently not collectible, partial pay installment agreements, streamline installment agreements, offer in compromise, and bankruptcy. IRS matters can be very confusing and many taxpayers will often misunderstand the difference between the Assessment and the Collections side of the IRS. The Assessment side handles your account when you file a tax return or if your return is audited, while the Collections side is only preoccupied with collecting what you owe and does not get involved with “why” you were audited in the first place.

The IRS Collections process begins when you have not paid the taxes you owe when you file the return. The IRS will send you a bill for the amount you owe and any penalties and interest. This is the start of the collections process. The amount you owe will continue to grow with interest that compounds daily, as well as a monthly late payment fee. The process continues until you have paid the amount in full, or when the time period of collection ends.

A Collection Due Process (CDP) hearing is an opportunity for taxpayers to discuss with the IRS any lien or levy action they may be facing. This is typically the last step to appeal before the IRS enforces a collection on your property or bank account. Once the IRS issues its Final Notice of Intent to Levy or Federal Tax Lien Filing, it must wait 30 days before beginning any action. It is during this 30-day period that you can file the request for a CPD hearing. To request a CDP, you must complete Form 12153 and submit it to the IRS. It must be submitted to the address shown on the lien or levy notice, and include a copy of the notice.

Payment Plans

If you cannot afford to pay your tax bill in full, the IRS does offer payment plans or installment agreements. Generally, the IRS will allow you to set up a streamlined payment plan if you owe $50,000 or less; demonstrate you can’t pay the amount you owe now and can pay off the taxes owed in three years or less. The IRS offers four payment plans:

  • A short-term payment plan is for taxpayers who can pay off their debt in 120 days or less. There is no setup fee; however, you will need to pay any accrued penalties or interest until the balance is paid in full.
  • The long-term payment plan is for taxpayers who need more than 120 days to pay the amount, and the payments are taken through automatic withdrawals from your checking account. This is also known as an installment agreement. There is a $31 setup fee, and you will need to pay any accrued penalties or interest until the balance is paid in full.
  • A streamlined payment plan is an option if your balance is below $50,000 the IRS will allow you to streamline your payment plan over 72 months with no financial information provided.
  • If your balance is greater than $100,000, the IRS will require you to provide financial information including income and proof of expenses.

Collection Appeals Program

The Collection Appeals Program (CAP) is an option for taxpayers facing a tax lien or if you’ve been denied the option of establishing a payment plan. The CAP is administered through the IRS Office of Appeals. You are given a hearing and it’s there you can argue for an installment agreement or payment plan. However, you cannot appeal the outcome of the CAP. It’s best to work with an experienced California tax collections attorney if you’re facing a CAP hearing.

How Our IRS Tax Lawyer Can Help You

Allison Soares is an experienced California tax attorney who has represented hundreds of clients before the Internal Rеvеnuе Sеrvісе (IRS) and has experience in CAP hearings and collections. She enjoys fixing tax problems and helping people, in matters including audits, collections, appeals, and general dealings with the IRS.

IRS Collection Process

The IRS Collections department comes into play when a person or business owes money to the IRS. Here are some of the ways a person or business can owe money to the IRS: currently not collectible, partial pay installment agreements, streamline installment agreements, offer in compromise, and bankruptcy. IRS matters can be very confusing and many taxpayers will often misunderstand the difference between the Assessment and the Collections side of the IRS. The Assessment side handles your account when you file a tax return or if your return is audited, while the Collections side is only preoccupied with collecting what you owe and does not get involved with “why” you were audited in the first place.

Speak with our experienced Orange County IRS collections attorney to find out what you can expect, what the process looks like, and what your best options are.

IRS Levies & Liens
There are 3 common tools that the IRS uses to collect payments from those who owe money: IRS levies, IRS liens, and wage garnishments.

IRS Levy: In this scenario, the IRS collects the money owed directly from your bank account. This is a very aggressive method and it is only used after they tried several times to contact you and have failed to reach you. If you receive a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” you have little time left to contact the IRS before they freeze your account.

IRS Liens: A tax lien is the government’s legal claim to property that is held in your name. A tax lien attaches to all of your property, including property that you may acquire in the future.

Wage Garnishments: If your employer tells you they’ve received a Notice of Wage Garnishment, this notice is effective immediately upon receipt and it required that your employer must pay the IRS the proper levy amount on each payday that the levy remains in effect. Contact us immediately so we can guide you on how to best navigate this scenario.

IRS International Compliance IssuesThere are two entities that require you to report on foreign accounts and assets:  the IRS and the Department of Treasury. Many people are not aware that they must report to both departments. Reporting to one of them and forgetting the other can cause serious penalties, as the two departments do not exchange information (reporting to one does not mean the other is also receiving the information). These are two separate reports, they use different forms, and have different requirements. If you have accounts or assets outside of the United States, or if you own a property abroad, ask for expert advice from our Orange County IRS tax attorney.

Innocent Spouse Relief

Generally, you and your spouse are jointly liable for your tax debt. If you qualify for Innocent Spouse Relief you will not be responsible for the taxes, interest, and penalties. This scenario occurs when a spouse did not report or under-reported certain items on the joint tax return. This could happen even if the couple is divorced if the error took place on a previous joint tax return.

Although many taxpayers believe they qualify, Innocent Spouse relief can be very difficult to establish. One of the hardest hurdles to overcome is that the “innocent” taxpayer did not know or did not have any reason to know there was an error or an issue with the tax returns. It is important to reach out to a tax lawyer in San Diego or Orange County to determine if you qualify for Innocent Spouse Relief.

Payroll Tax Issues

There are many tax requirements that employers must abide by. Employers are required to timely report and deposit all employment and payroll taxes. If the employer fails to meet these requirements they will be subjected to substantial penalties and interest. Payroll taxes can also be weighed against an owner, officer, or employee of the business. If you have any payroll tax issues, a business tax lawyer can determine what your options are and how you can resolve this very expensive area of tax law.

Trust Fund Recovery Penalty Issues

A lawyer explaining penalty issues to a client in Orange County.The IRS wants businesses to pay employment and income taxes timely. When an employer takes payroll taxes from an employee’s paycheck, the employer is holding the money for the government in “trust” until they pay that money to the IRS. If the employer does not make these “trust” payments, the IRS can collect the funds that were withheld from the employee from you personally. The business does not have to stop doing business for the IRS to attempt to collect from you as an individual. If you have been assessed a trust fund penalty, you have a very limited time to appeal this assessment before it goes final. A California IRS tax lawyer can determine the assessment can be prevented or whether you need a timely appeal to the assessment.

Speak With a Highly-Experienced California Tax Attorney Today

Whether you own a business in Orange County, San Diego, or anywhere else in California, speak to a highly-skilled lawyer at Allison Soares, Attorney at Law.

Allison Soares practices the following legal areas:

CALL our Orange County IRS tax lawyer directly or contact us through our online form today.

Testimonials

"Allison was a pleasure to work with. Smart, professional and responsive to my calls and concerns, and often took extra time to educate me about my situation and options. Most importantly though, I was happy with the results and Allison was able to get me an arrangement that I found both fair and affordable."
- Jeffrey S