What To Do When You Have Tax Disputes

What To Do When You Have Tax Disputes

The tax aid business has skyrocketed within the past five decades.  This is primarily due to the Internal Revenue Service’s efforts to bring the hammer down on taxpayers.  As a result, there are many firms flooding the market offering tax settlement solutions for beleaguered taxpayers.

You are going to wish to be very discerning when choosing a tax settlement firm to handle your issues with the Internal Revenue Service.  Not every one of these companies is as skilled at representing your interests.  Here are a couple of things to take into account when making your choice.

O The firm’s performance in resolving tax disputes, of course, should be the first and foremost concern.  Many customers have they represented?  What is the entire dollar amount depended against the dollar amount of back taxes, penalties, and fines?  Examine the settlement company out along with your state attorney general’s office, along with the Better Business Bureau to make certain that they have solved any complaints and that there is not any legislation involving the provider.  Figure out if the Business is certified as a Tax Resolution Specialist.

O Do not hire on with an organization that needs full payment upfront.  A religion retainer should be adequate to get them started working on your case.

O Be very careful of any tax resolution team that promises to get effects.  No company that is fantastic will tell you they can guarantee anything.  Before they can provide you some notion about what the final result may be They’ll need to inspect your position.  Not everybody gets you.  An honest business will affirm that right.

O Ask for information concerning the business owners or officers.  This is a question and ought not to be fulfilled with vacillation or avoidance.

O Learn how long the company has been in business.  You most likely wish to appear elsewhere, if the answer is less than five decades.

O Don’t give in to high-pressure tactics.  A tax resolution firm will not try to fill you so as to get you to sign on.

O Learn how soon after you retain their services you will be contacted on your situation.

O Ask when they return emails and telephone calls without delay.

O Ask who will be specifically assigned to your situation so that you know there is a trail of accountability.

All in all, it should not be overly difficult to weed out the folks that you would like to take care of your tax settlement problems from the ones with whom you decide not to work.  Be sure and go throughout the effort.  It is very important that the people representing you before the Internal Revenue Service be professional and of great character.

Ways to Deal with An IRS Dispute

You may be knowledgeable about the traditional ways to handle a tax dispute with the IRS but there are lots of alternative ways to handle your case. Kienitz Tax Law indicates the following methods:


Mediation is a simple procedure where a mediator negotiates a deal between two parties.  Your mediator will go back and forth with you trying to come to an arrangement with the IRS and you.  A mediator can help you guide you to an understanding of your overall objective and understand what kind of flaws and strengths you have in the case.  Because it entails proceeding or no courtroom trial mediation is an excellent alternative to traditional resolution.


Instead of visiting Tax Court would be to have an arbitrator or board of arbitrators listen to your case from both sides and then make a determination on the outcome.  In most scenarios, a decision by mediation is binding for both parties involved.  The practice of arbitration is much like a trial although not formal.  If you decide to have your case heard under mediation that is binding the decision will be final.  This is important to take into consideration when deciding how you want your case to be heard.

Benefits of Mediation and Arbitration

Mediation and arbitration both can be very valuable to a citizen in the kind of money and time saved.  Litigation can be a time-consuming and very expensive procedure.  Both of these choices can reduce the demand for the requirement for costly legal representation.  At the exact same time, you will avoid penalties that will accrue in the long process of litigation and the interest.  Anything that will enable you to solve your IRS issue should seriously be considered.

Compliance Assurance

The IRS has a program called the Compliance Assurance Program which is mainly used by businesses to fix specific transactions that the IRS considers are of top priority.  This whole process occurs before the business files its tax return and enables the IRS and business to work together to complete the return.

Fast Track Mediation

Fast track mediation is a program the IRS provides to taxpayers that wish to solve their dispute in the shortest amount of time possible.  Typically a case can settle depending on how complex your case actually is.  This system extends to offer in compromise and trust fund recovery penalties.

The way the process works is the Appeals Officer appointed by the IRS will work as a mediator between you and the examination section of the IRS.  The goal of the Appeals Officer will be to facilitate a settlement between the taxpayer and the IRS as quickly as possible.  Both taxpayer and the IRS must agree to fast track mediation and all issues should have been researched and detailed for examination.

The fast track mediation application allows the citizen to attempt to resolve their taxation problem in a short amount of time without having the decision be final.  You may ask to get a full appeal hearing if you aren’t pleased with the outcome of your track case.

Industry Issue Resolution

The Industry Issue Resolution Program is a software that was designed to aid citizens with industry-specific questions regarding their tax returns.  This system allows taxpayers to ask questions about industry-specific tax disputes that are avoidable and regular.

Large and International Business Resolution

The Pre-Filing Agreement and Comprehensive Case Resolution Program enables large businesses that are national and global to request help with their tax returns prior to filing.  Questions and problems can be ironed from a business return prior to needing to file them.  This can save yourself a lot of money and time since it avoids having to go back and change a return that has already been filed with the IRS.

Mediation following an appeal

In case you were not satisfied with the outcome of your appeal you may still request mediation even if the situation is led to Tax Court.  The requirement to enter into mediation after an appeal has been finished by you is that your case is not already on the Tax Court docket.  This mediation is a normal mediation that we spoke about before in this post.