How Do You Challenge a Tax Bill?
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.
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.
6 Ways to Challenge IRS Tax Bill
But fear not! Fortunately, there are ways to challenge an IRS tax bill.
1. Request for Audit Reconsideration
We can get the audit reopened and re-examined.
2. Doubt-as-to-Liability Offer
This 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 Relief
We ask the IRS to adjust the amount of tax due, by allocating the tax between the spouses or former spouses.
5. File an Amended Return
If the taxpayer does not receive anything in 6 months, then they can bring a litigation suit
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. Gary does this for our clients. If you are facing a tax bill, send me a message to discuss which strategy is right for you.