Bonnie Lee founded Taxpertise in 1982 to represent taxpayers in audits, offers in compromise, tax problem resolution, tax preparation, tax planning, and to help non-filers safely re-enter the tax system. She is the author of "Taxpertise, The Complete Book of Dirty Little Secrets and Hidden Deductions for Small Business that the IRS Doesn’t Want You to Know.” Her office is at 450 2nd Street West, Sonoma, CA 95476 Contact her at 935.1755 or [email protected]
Perseverance
Dear Bonnie: I’ve been having a tax problem for a very long time. The IRS says I still owe for my 2008 income tax return and even though I sent a copy of my cancelled check several times already, they act like they never received it. Every time I talk to someone there, they say they’ll look into it. Now I’m getting a levy notice. What should I do? – Ken in Oakmont
Dear Ken: Many taxpayers may just give up and pay the tax bill again. Not the best solution. Here are some tips for you to help keep your money in your pocket. When you have a problem with the IRS, whether it’s a dispute over payment, a failed attempt to be deemed uncollectible, a question about the validity of a deduction or other problem, you should:
Read Publication 1, Taxpayer’s Bill of Rights available at irs.gov. This will give you a background of your rights and resources to ensure them.
Run your situation by a tax professional for advice and tips. It may be to your advantage to hire a savvy CPA or EA to handle it for you. A tax professional can let you know whether or not you have a valid argument. He can also warn you against any “Wesley Snipes” types of frivolous stances, which may be heavily penalized if pursued.
Research – save money in tax pro fees by googling your situation. The IRS website is also helpful with a plethora of publications and instructions for tax forms that provide the needed information in plain English. Go to Cornell University Law School website to search the IRS tax code: law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A.html Warning: it’s not necessarily up-to-date.
Documentation – keep a written log of who you speak with at the IRS including his or her badge number. Note the date and content of the conversation. Follow up the conversation with a faxed summary to the agent with whom you are dealing. Make sure you make copies of all correspondence you send to the IRS including copies of documents you have provided. Meet all of their deadlines for providing documentation.
Appeal your claim until you get the proper result. If you are refused, present your research and ask where the fallacy lies. Get the IRS to cite the code section upon which it is basing its decision. And don’t be afraid to argue your points.
The last resort is the Taxpayer Advocate. If you have exhausted your resources and have still not found justice go to taxpayeradvocate.irs.gov/ or call them at 877.777.4778 for help. This is a free service by an independent agency which works within the IRS.
Ken, it might be time for you to consult with a tax professional that can go to bat for you. Either that or contact the Taxpayer Advocate.
In my experience, most IRS personnel are friendly and helpful. Many are new to the job. Although you may often feel frustrated and angry, remember the Golden Rule: Treat others as you would wish to be treated.
