If you have ever received a letter from the Internal Revenue Service, you already understand how important your response is. Whether it’s a small issue or a large one, a timely response is required. Without a response, the
Prather Kalman, PC has an excellent track record for reducing tax, penalties and interest. Our CPA’s and Enrolled Agent (EA) have saved hundreds of thousands of dollars in penalties and interest, frequently with a single response.
Even if the issue falls into the 25% penalty category and the fix isn't simple, it must be resolved. Sometimes, tax returns filed in previous years are required prior to resolving an issue. If that’s the case, starting sooner than later is essential.
Tax issues fall into two categories, civil or criminal. Criminal tax problems can include jail time as well as civil penalties. We work with several tax attorneys that handle criminal tax issues. Most often, tax problems are handled through civil process and not criminal courts.
Civil penalties are applied for failure to file, failure to pay, under reporting income, etc. If a taxpayer fails to pay the required tax, interest will compound. Eventually the penalties and interest will be more than the actual tax owed. The
The bottom line is simple. Address each issue immediately - waiting only makes it worse.
One letter magic!
Problem: A taxpayer received an
Strategic action: We researched the tax return the client originally filed and determined that the gambling expenses were already part of a statement in the originally filed tax return, listed as disallowed. We responded, showed a simple formula that would reduce the additional gambling income to zero.
Result: With one letter to the
Problem: A taxpayer received an
Strategic action: We researched tax law and determined that the client was "unable to manage his financial affairs by reason of a medically determinable physical or mental impairment".
Result: With one letter to the
Contact us today to learn how our CPAs and EA can help you.