IRS Tax Problems

When You're Battling the IRS, There Are Many Reasons Why You Need an Experienced Tax Professional in Your Corner

Lee Reams II
When You're Battling the IRS, There Are Many Reasons Why You Need an Experienced Tax Professional in Your Corner

There are a myriad of reasons why taxpayers should enlist the help of an experienced tax professional more often than not. Not only are they less likely to procrastinate if a pro is involved, but they're also far more likely to avoid some of the common types of mistakes that a lot of "do it yourselfers" just can't seem to avoid.

But at the same time, this demands the question — "what if you've ALREADY fallen prey to some of those mistakes and now have the IRS knocking at your door more fervently than ever?"

That type of situation is one where you need a tax professional more than ever.

Not only do professionals have experience working with the IRS and state agencies so they know how the system works, but they can also help minimize any damages that you're already subject to. In fact, when you're battling the IRS, there is no better person to have in your corner than a seasoned tax veteran for a wide range of reasons that are certainly worth exploring.

Better Experience Creates Better Outcomes: Breaking Things Down

In an effort to help illustrate this point, we asked a series of experienced tax professionals a simple question: "What is the best outcome you have ever received when working with a client to resolve massive debt and other issues?" Almost immediately, the responses came pouring in — and they are as varied as they are impressive.

Steve Rothschild of Rothschild and Associates said that one outcome he was particularly proud of involved "obtaining and reviewing the IRS notice, which allowed me to significantly reduce [the client's] tax debt. Then, I submitted a payment plan and reviewed it over the phone with the IRS agent, which allowed me to establish a better payment arrangement that fit the client's needs and budget."

Because Some Things Are too Important to Leave to Chance

But while this type of tax debt relief is common, many of our experts participated in situations where the stakes were decidedly higher than average. Tyrone J. Taylor of Nashville Tax Relief, for example, said that his best outcome "involved eliminating $120,000 in debt by way of an Offer in Compromise. After reviewing their situation, the taxpayer no longer had the income to support making a payment to the IRS, which would have been close to $1,500 per month. I was able to produce the best possible outcome for him and the Offer in Compromise can be a great tool in helping taxpayers that can't afford to pay their tax debt."

Tony Gibson of MMG Tax Group recently found himself in a similar situation, though one that wasn't quite that costly. "I helped a client get $30,000 in IRS debt removed. It was a relief off their shoulders because they tried on their own for two years to get this handled. I was able to resolve it in less than two months after asking specific questions from clients and then analyzing the transcripts to present the case. It was all done over the phone."

But Jacqueline Mclean of Financial Peace Services may have one of the most impressive cases of all — or at least, one of the most unique. "I recently had a client who went to jail for tax fraud and was released after serving a few years. He found a job but soon received a lien notice. His bank account and wages were levied and he was only receiving $600 a paycheck."

Jacqueline got to work and soon was able to come up with a solution that worked well for everyone. "He owed over $230,000, but I was ultimately able to settle for less than $8,000."

The Best Result Is Always Peace-of-Mind

Allen Lenth of Executive Tax Solution indicated that he, too, had been involved in a number of situations — to the point where it was hard to limit his response to any one particular outcome. In fact, he may be the one that said it best when he said that "the most exciting outcome is always the relief that clients receive once it finally dawns on them that they are not going to be slaves to the IRS for the rest of their lives."

He continued, saying that "I'm a big believer in the idea that all problems have solutions. For tax professionals, tax debt issues are opportunities for everyone involved. For us in particular, they're an opportunity to show our skills, and there's always a chance to learn new things along the way."

He also, however, reaffirmed the idea that some lessons must be learned the hard way. "For clients, it's always a lesson-learned opportunity. The mistakes they've made in the past are never going to happen again and I think that's empowering for business owners."

Indeed, that last point is a particularly important one that personal and business taxpayers alike could stand to think more about before April rolls around once again.

Lee Reams II, writes for TaxBuzz, a tax news and advice website. Reach him at [email protected] or on LinkedIn.  

share this post
Search for matches...
Lee Reams II

Lee Reams II


I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts