A Guide to Common IRS Related Problems
  • October 12, 2020
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Taxation related issues may seem trivial on face value but they can snowball into serious problems if kept unchecked and not resolved. Even a first time instance or an unintentional mistake is good enough to get the IRS involved, putting your bank accounts, pay-checks, and even liquid assets under the threat of being investigated and/or seized. That is why you must always be in a position to make informed decisions. While professional consultation and assistance is always recommended in tax matters, it still helps to learn and understand IRS matters for yourself. In this blog, we take a closer look at a few common IRS related problems that can lead to undesirable consequences if left unattended.

1. Unfiled Tax Returns

“Taxpayers are required by law to file income tax returns every year in which a filing requirement exists. The IRS may impose a wide range of civil and criminal sanctions on persons who fail to file returns”. (FS-2008-12, January 2008). If unfiled or pending tax returns aren’t filed, they will be recorded and filed by the IRS which will most likely not consider any deductions, expenses, dependents, or even the actual filing status among other tax-saving avenues. Procrastinating when it comes to filing tax returns can lead to serious problems with the IRS.

Related Blog: The Three IRS Payment Plans Explained

2. IRS Tax Investigation

Any tax related problem will eventually lead to a tax investigation by the IRS and having copies of all your tax files gives you a great starting point to get a resolution. The risk of an IRS investigation increases a lot more if you personally request your tax file as you are automatically red flagged. Some of the issues which can lead to an IRS investigation include failing to report your income to the IRS, claiming deductions that exceed the qualified limit, mathematical discrepancies in tax return, and claiming a dependent that has already been claimed by someone else.

3. IRS Appeals

If you are not satisfied with the IRS’ resolution of your tax issue, you can appeal to the Office of Appeals, an independent unbiased third party organization which makes sure that both parties are un-partially heard, and helps you reach a mutually agreed solution without involving the tax court. Two common kinds of IRS tax appeals are “Request for a Collection Due Process” which is generally made when the IRS issues a final notice of intent to levy and “Rejected Offer in Compromise”, which is considered to be the final opportunity within the administrative process to negotiate the submitted Offer in Compromise. Several other appeals exist apart from these.

Related Blog: 4 Ways a Tax Lien Can Affect You

4. Payroll Tax Problems

Every employer is required to withhold a certain amount of every employee’s salary to cover their federal income tax liabilities, social security, and medicare taxes, all commonly known as “trust taxes”. If a business has employment taxes that are overdue, the IRS will seize its business assets to recover the dues. This may be applicable to both operating and non-functioning businesses.

Last Word

If you are facing any of the aforementioned IRS related issues or any other IRS tax issue, it is highly recommended to seek the services of a team of professional tax attorneys to gain insight into your case and help attain a resolution of any tax disputes. Contact the Law Offices of Nick Nemeth to discuss your tax problems and find the best solutions. Simply call (972) 426-2553 or email us at jamie@myIRSteam.com, and we will take it from there.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
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I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
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Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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