The IRS is Never Wrong?!

I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.

Hopefully, you’ve never been in a position to have heard the statement in the title, from someone (particularly, an employee of the IRS). However, it always amazes me when I hear an agent of the Service, utter those exact words, and then in as little as two to three hours later (hopefully while speaking with the same agent), the IRS is proven to be just that. Flat out wrong! It could even be a case, where withholding from both the primary and secondary taxpayers gross income item has been executed (multiple years earlier), and somehow the Service has issued a “CP90”, etc., with the intent to levy in 30 days, and in actuality, they owe the taxpayer money, and not the other way around. Sheesh!

This is one reason why it is stressed that you should look into reviewing your tax returns every so often.  The recommendation is every four(4) years, just in case a refund can be had by amending returns, and you’d be afforded the ability to apply for a refund, on a previously assessed and paid tax. The IRS is not going to review it for you, and as with the previous example (experienced from an actual case), the Service just might be gearing up to come after you, the taxpayer(s) for “phantom” or faux tax, penalty, and interest assessments.

Just remember that the IRS (or its agents), are going to assume, and in many cases insist that whatever assessments the Agency has “handed down”, are fair and true. So, be sure to have all of your information ready, and be precise when pointing out the facts (translation, do not sound unsure about the facts you are relating).  It’s a good idea to have all pertinent information (even information that you do not hold in dispute (ex. Adjusted Gross Income, Income sources, etc), “laid out” in an easy to locate area near where you are conducting the phone call. Thus, allowing you to quickly reference any information that you do not have “top of mind”, and risk annoying the agent or employee unnecessarily (some time during the call their annoyance is bound to manifest itself, but no need to endure it more than necessary).

Also, even when you have the facts on your side, and you have the service “dead to rights”, be as respectful, and as courteous, as if you were applying for a business loan from the local bank. We want the person on the other end to not only agree with the mistakes we are pointing out, but also to make the necessary adjustments to the account transcript. Ultimately, resolving the issue in your favor. Even if the agent does not agree with our position, keep in mind we have the right to appeal (Form 12153 requests an appeal if filed within 30 days of the letter, or if the deadline is past, an equivalent hearing can be requested – which is almost as good), and have our case heard by an appeals officer, which can be found to be more reasonable than other agents and revenue officers.

If you are one of the taxpayers who is confused about certain aspects of the Internal Revenue Code or just feel as though you would at least like to discuss resolving your tax bill and the IRS’s impact in your life. Feel free to contact us in regards to our Tax Representation/Consulting Services, as well as our potential tax planning and savings ideas.