Do This to Correct a Bad Tax Audit (2 Ways)
What happens after an IRS or state tax audit, where you get a really bad result? Imagine if now it’s too late to continue fighting it. Because it seems like all your options are gone. And now the government is pursuing you to collect the tax that occurred from the audit. What do you do?
Here are two common solutions that could help you to accomplish the common question:
How do I make this problem go away?
Correct Tax After Audit, IRS Tax Attorney (Naperville IL)
One – The Audit Reconsideration
Ask your tax lawyer about the chances of correcting an unfair result in the IRS “Audit Reconsideration”. Assuming that you did not agree to the audit result, the Audit Reconsideration allows you to go back to the IRS to re-open the audit.
You are basically saying to the IRS: “Hey, these things went wrong in the audit. The government never considered all facts and circumstances. The IRS made a mistake. They got it wrong, and we want to correct the mistake.”
Note: You only have one opportunity for reconsideration. Your best chances are with an experienced tax professional.
Two – An Offer-in-Compromise “Settlement”
Maybe you do not wish to fight the audit. But if you know that you cannot pay the tax, then you may be eligible for an Offer settlement.
People have many names for these alternative payment arrangements with the IRS.
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The actual name is “Offer-in-Compromise” (OIC).
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Another nickname is the “Fresh Start program”.
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The most common nickname is simply “a settlement”.
A word of caution, however. There are many advertisements on radio, video, and print ads, that promise “pennies-on-a-dollar” results. That marketing language is dangerous to the public because it suggests that anyone is eligible, and it gives a misleading expectation of likely results.
However, for those eligible, there is a huge opportunity for savings, or for eliminating much of the additional tax from the audit. Tax Law Offices routinely win OIC settlements with the IRS and multiple state governments. The result is tens of thousands, hundreds of thousands, and even millions of dollars in tax debt wiped away.
Most Offer-in-Compromise settlements are based upon:
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The person’s ability to pay, or
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The person’s actual legal liability.
These are only two ways to correct a bad audit result. Ask your tax lawyer if one of these is the right option for you.
Tax Attorney Anton Collins is a national speaker on tax matters and is a principal with Tax Law Offices, Inc.