Everyone makes mistakes, and it’s possible that large government bureaucracies make more than their share, but if you’ve received an IRS collection notice, you need to take it seriously, even if you’re certain that it’s based on an error. Depending on the specific circumstances and the amount involved, retaining an experienced tax resolution attorney might be the best way to secure a prompt, favorable resolution. 

The first step in effectively responding to an IRS communication is to read the entire notice carefully, paying particular attention to any listed deadlines. Often, recipients of these letters do not know about the alleged balance or why the IRS believes you underpaid. Reaching a live representative who can answer your questions could be very difficult. You might opt to create an online account at the IRS website.

Explanations regarding tax issues can seem convoluted, and even a misplaced decimal point could have serious consequences. Working with a professional could be the best way to gain a clear perspective on what should be done. A tax resolution lawyer can review account transcripts, confirm that all payments and credits were posted, and check whether penalties were calculated correctly. 

Should the IRS information be accurate, you and your attorney can discuss whether full payment, a short-term extension (up to 180 days) or a longer payment plan is the best option. Another possibility is an Offer in Compromise, where you provide an amount less than the full balance to the IRS in exchange for their agreement to drop the case against you without any further interest accruals or penalties. 

If your balance stems from an audit or missing documents, submitting additional materials could resolve the situation successfully. This process might involve audit reconsideration, the filing of an amended return and/or a request for penalty relief. Should a dispute still exist, you generally have 30 days from a Final Notice of Intent to Levy or a Notice of Federal Tax Lien filing to request a Collection Due Process hearing. Following that, there is a year to seek an Equivalent Hearing. An appeal might pause the collection action, providing time to negotiate a settlement, correct errors or challenge improper procedure.

Every case is different. If you received an IRS collection notice, contact Anker Law Group in Rapid City. Our South Dakota tax resolution attorneys can review the facts of your case and take timely action to protect you against unjust costs and penalties. Please call 605-519-5967 or contact us online for a consultation.