How Do You Challenge a Tax Bill?Incorrect tax bills are actually fairly common. Why is this? It is because the IRS is relying on automated systems more and more to deal with taxpayers. For example, 75% of all IRS audits are done by computers. The IRS uses computer systems to create substitutes for tax returns, where they are missing them. As a result of this automation, many Atlanta taxpayers are receiving letters in the mail from the IRS that contain tax bills with incorrect tax amounts.
I hear of folks who write to the IRS about a bad tax assessment, and they experience the frustration of their paperwork getting lost in the system. As a result, bad tax assessments go unchallenged and appeals are not made. Individual taxpayers then find themselves battling with IRS Collections for money that they do not owe. These individuals may even be subject to a tax lien, which makes it nearly impossible to get approved for a mortgage.
But fear not! There are ways to challenge an IRS tax bill.
1. Request for Audit ReconsiderationWe can get the audit reopened and re-examined.
2. Doubt-as-to-Liability OfferThis is a type of Offer-in-Compromise that challenges the underlying liability itself.
3. Collection Due Process Hearing (CDP)During the hearing, the tax bill can be challenged.
4. Innocent Spouse ReliefWe ask the IRS to adjust the amount of tax due, by allocating the tax between the spouses or former spouses.
If the taxpayer does not receive anything in 6 months, they can bring a litigation suit.
5. File an Amended Return
The issue can be challenged through bankruptcy
Which of these is the right one for you? The answer depends on an analysis of your facts and circumstances. I do this for our clients. If you are facing a tax bill, send me a message to discuss which strategy is right for you.
If you would like to watch our YouTube video on this topic, click here. Feel free to call our office at 678-235-5460 for more information!
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