Handling Your Tax Disputes

The tax relief business has skyrocketed in the last five decades.  This is primarily due to the increased efforts of the Internal Revenue Service to bring down the hammer on taxpayers.  Consequently, there are firms flooding the marketplace offering tax resolution solutions.

You are going to want to be very discerning when choosing a tax resolution firm to manage your problems with the Internal Revenue Service.  Not everyone these firms are as skilled at representing your own interests as others.  Here are a couple of items.

O The company’s performance in resolving tax disputes, of course, should be the first and foremost concern.  Many customers have they represented?  What is the dollar amount settled against the dollar amount of taxes, penalties, and fines?  Examine out the settlement company along with your state attorney general’s office, along with the Better Business Bureau to make sure that they have solved any complaints and that there’s no legislation.  Figure out if the company is certified as a Tax Resolution Specialist.

O Don’t hire on with a company that needs full payment upfront.  A fantastic faith retainer ought to be sufficient to get them started working on your situation.

O Be careful of any tax resolution team that claims to get results.  No company that is good will tell you they can guarantee anything.  They will have to scrutinize your position in detail before they may give you some notion about what the end result might be.  Not everybody applying for an Internal Revenue Service Offer in Compromise gets you.  An honest company will affirm that right.

O Request information about the business owners or officers.  This is a valid question and should not be met with prevention or vacillation.

O Learn how long the company has been in business.  If the answer is less than five decades, you wish to look elsewhere.

O Do not give in to high-pressure tactics.  In order to get you to sign on A respectable tax resolution firm won’t try to fill you.

O Learn how soon after you retain their services you’ll be contacted about your situation.

O Ask if they return emails and phone calls without delay.

O Request who will be specifically assigned to a situation so you know there’s a path of responsibility.

Overall, it shouldn’t be overly tough to weed out the folks that you would like to handle your tax resolution problems from those with whom you opt not to work.  Just be sure and go throughout the attempt.  It is very important for good character and that the people representing you be professional.

Ways to Handle An IRS Dispute

You may be familiar with the conventional ways to handle a tax dispute with the IRS however there are lots of other ways to handle your case. Kienitz Tax Law suggests the following approaches:


Mediation is a simple procedure where a mediator negotiates a deal between two parties.  Your mediator will go back and forth with you attempting to come to an arrangement with the IRS and you.  A mediator can help you guide you to an understanding of your objective and realize what sort of weaknesses and strengths you have in the case.  Since it involves no court trial or legal proceeding, mediation is an excellent alternative to classic resolution.


Instead of going to Tax Court is to get an arbitrator or board of arbitrators listen to your case by both sides and then make a determination on the outcome.  In most situations, a choice by mediation is binding for both parties.  The practice of arbitration is a lot like a trial but not formal.  If you choose to have your case heard under mediation that is binding then the choice would be final.  This is important to consider when determining how you want your case to be heard.

Benefits of Mediation and Arbitration

Mediation and mediation can be very beneficial to a taxpayer in the kind of money and time saved.  Litigation can be a time-consuming and costly procedure.  Both of these choices can greatly reduce the need for expensive legal representation and the need for litigation.  At the exact same time, you will also avoid penalties that will accrue in the long process of litigation and interest.  Anything that will enable you to address your IRS problem should seriously be considered.

Compliance Assurance

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

Fast Track Mediation

Fast track mediation is a program the IRS offers to taxpayers that wish to resolve their dispute in the shortest period of time possible.  Typically a case may settle through fast path mediation in about 45 to 90 days depending on how complex your case actually is.  This program extends to offer in compromise and trust fund recovery penalties too.

The way the process works is an Appeals Officer appointed by the IRS will work as a mediator between you and the evaluation department of the IRS.  The goal of the Appeals Officer is to facilitate a resolution between the citizen and the IRS.  The IRS and taxpayer must concur to fast track mediation and all problems must have been researched and detailed for examination.

The fast track mediation program allows the citizen to attempt to solve their tax problems in a quick quantity of time without having the decision be final.  If you aren’t pleased with the result of your track case you may ask to have a complete appeals hearing.

Industry Issue Resolution

The Industry Issue Resolution Program is a software that was designed to help citizens with industry-specific questions regarding their tax returns.  This program enables citizens to ask questions regarding tax disputes that are regular and avoidable.

Enormous and International Business Resolution

The Pre-Filing Agreement and Comprehensive Case Resolution Program allows big businesses that are domestic and global to ask help with their tax returns prior to filing.  Questions and issues can be ironed out of a business return prior to needing to file them with the IRS.  This can save lots of money and time because it avoids having to go back and alter.

Mediation after an appeal

If you weren’t pleased with the outcome of your appeal you may still ask mediation even if your situation is headed to Tax Court.  The only need to enter into mediation after an appeal has been finished by you is that your situation is not already on the Tax Court docket.  This mediation is a mediation that is normal that we talked about before in this post.