The IRS is probably the quintessential embodiment of bureaucracy. Therefore, don’t be surprised that when dealing with them you must play by their rules. It would be prudent to have your local Tampa lawyer assist you on the best course of action when fighting an IRS bill. Don’t forget to follow procedure and to closely examine the order of notices. Again, it would be wise to have an experienced lawyer from your local Tampa area to help you. Here are just some tips to keep in mind when dealing with the IRS.
Chances are if you get audited you will get a notice in the mail about it. You might also be asked to explain why there are inconsistencies on your tax return. This all usually takes place during a tight time frame, so make sure that you speak with your lawyer here in Tampa about your options.
Timing is key when dealing with the IRS. If you receive an Examination Report from them, it’s time to prepare. Make sure to protest and then sign and mail it before the deadline. Also, always have copies of everything, even that you mailed it. This can save you from some serious headaches. If you protest with facts and laws, you may have the IRS agree with you.
The IRS has an Appeals Division that is separate from them. Most cases will be resolved with them. They also have offices nationwide and are pretty good at working out compromises.
Notice of Deficiency
If you receive a Notice of Deficiency, you either failed to protest or your case wasn’t resolved with the IRS Appeals Division. This is usually called the 90-days letter, because you have that long to respond. At this stage, all you can really do is file a Tax Court petition with the U.S. Tax Court. But make sure you file before the 90-days deadline, otherwise they won’t hear your case.
Tax Court Judges
Tax court judges travel around the country to federal courthouses to hear cases. You can pick where you want your case to be heard and file your petition.
IRS Appeals Round Two Possibility
Your case can actually be transferred back to the IRS Appeals Division. Your case won’t necessarily be decided in Tax Court.
The IRS will grant extensions in many instances. However, sometimes they cannot because of strict rules (such as the 90-days letter).
Pay and Sue
If you miss the 90 day deadline, you won’t be able to appeal at Tax Court. But you can still go to a federal district court or U.S. Claims Court. You will end up paying the taxes and then you can file for a refund. If denied you can still sue for a refund.