Tax Audit & Appeal Representation

Seattle Attorney for Tax Audits and IRS Appeals

If you have been audited by the IRS, and if you did not file a tax return, the IRS will file one for you, based on your reported income without considering applicable tax credits, itemized deductions or business deductions in its calculations. As a result, you will not be eligible for a payment plan for your tax debt, and IRS may start its collection process by garnishing your wages to pay the delinquent tax debts. When you did not file your taxes for many years, the IRS can deem that as tax evasion.

When the revenue agent or auditor has completed his examination or return, he must explain any proposed adjustments to the taxpayer. Each notice has specific instructions about what you need to do. You may receive a notice that states the IRS has made a change or correction to your tax return. If you do, review the information and compare it with your original tax return.

What to do if you Receive an IRS Audit Letter

If you have been audited and have concerns, it is important to speak with a tax attorney with experience in audits and appeals. If you are in Washington State / Seattle, attorney Olga Guzhva can help you minimize the unfiled tax return consequences and eliminate or reduce back taxes and penalties. To consult with us about our tax attorney services and how we can help in your particular situation, please contact Guzhva Law Firm to schedule a free phone evaluation.

Types of IRS Letters

You may receive one of these IRS audit letters:

The first notice (Request for Payment), mandated by Section 6303.

This is the standard IRS notice to the taxpayer that there is a tax due, states the amount of tax, interest, and penalties, and demands payment within 10-21 days (depending on the nature of the taxpayer and the amount involved).

The next letter, IRS Notice or CP-501.

You have a balance due (money you owe the IRS) on one of your tax accounts. This letter is issued about five weeks after the first one if the taxpayer has not paid the amount demanded, or at least contacted the Service. This and subsequent notices do not repeat the details about the amount of tax and penalties, but do contain an unpaid amount for interest.

Notice or CP-502 (Second Reminder)

In the absence of payment or taxpayer contact, the Service sends Notice or CP-502 (Second Reminder) in approximately another five weeks.

Notice or CP-504 (Notice of Intent to Levy)

Five weeks later, if the taxpayer has still taken no action, Notice or CP-504 (Notice of Intent to Levy) is sent by certified mail. Its issuance satisfies the statutory requirement contained in section 6331(D) of notice before levy. The notice states that if the Service does not get full payment within 30 days from the date of the notice, it may file a tax lien and will begin to search out assets upon which to levy. If you do not pay the amount due immediately, the IRS will seize (levy) your income tax refund and apply it to pay the amount you owe.

IRS Letter 525, Proposed Notice of Deficiency, also known as a “30-day letter”.

This letter is sent to notify the taxpayer of the auditor’s (or revenue agent’s) findings, proposed adjustment to the tax return, requesting that s/he agree to the findings, and advising about taxpayer’s appeals rights.

  • If the taxpayer agrees with the proposed adjustments, s/he is asked to sign an appropriate agreement form. It usually will have the effect of preventing the taxpayer from challenging any deficiency in the Tax Court, but it will not prohibit the taxpayer from paying the tax and filing a claim for a refund.
  • If the taxpayer does not agree with the proposed adjustments, s/he needs to file the protest within 30 days from the date of IRS Letter 525 in order to appeal the proposed adjustments with the Office of Appeals.

IRS Letter 531, Notice of Deficiency, also known as a “90-days letter”.

If the taxpayer takes no action after receiving the “30-day letter”, the IRS will issue a “notice of deficiency”, stating that the taxpayer has 90 days from the notice date to file a petition with the Tax Court.

IRS Letter 1058 (FINAL NOTICE prior to Levy; your right to a hearing). 

This letter is more commonly referred to as a Collection Due Process Notice of Intent to Levy. It lets the taxpayer know s/he may request a hearing before an Appeals Officer to request, for example, an offer in compromise, innocent spouse relief, penalty abatement, and other collection alternatives. The taxpayer may content the underlying tax is s/he did not receive notice of a proposed assessment.

In these situations, it is critical to hire a tax attorney who will help you to minimize the unfiled tax return consequences and help you eliminate or reduce back taxes and penalties.

We Can Help You

At Guzhva Law Firm, we are providing thoughtful solutions and measurable value to each individual situation. Because U.S. tax law and regulations are complicated and constantly changing, it is important that you obtain up to date information about the provisions that apply to you to prevent costly mistakes.

There are specific guidelines that have to be met and forms that need to be submitted in order for this process to work. We can work with the IRS to reduce your tax liability and negotiate a settlement.

To schedule a consultation with an attorney for tax audits and IRS appeals, please contact us today. With offices in Bellevue, we work with tax clients throughout Seattle and Washington State, and elsewhere.

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