Tax Problems & IRS Notices
How can we help?
You received a letter from the IRS or state tax agency and do not know whether it is routine or a legal problem.
Common situations
- IRS balance-due notice
- audit or examination letter
- levy or garnishment warning
- tax lien notice
- unfiled returns
- payments made but the balance persists
- retirement or bank funds affected
- repeated letters with different amounts
What happens next
The notice, tax year, and deadlines are reviewed first to determine required action and available options.
How these problems usually start
Tax issues rarely begin with enforcement.
They begin with a letter. The letter may appear routine, and many people set it aside while trying to gather records or waiting for a preparer to help. Additional letters follow. The tone changes. Deadlines appear.
Eventually the situation becomes urgent when a levy is threatened, a lien is filed, or funds are taken from an account.
The difficulty is not understanding what the notice actually means.
IRS correspondence follows a sequence. Each letter corresponds to a specific stage in the collection or examination process.
Ignoring early notices removes options that are still available at the beginning.
The real legal issue
An IRS notice is not simply a bill.
It represents a legal determination, a proposed determination, or a collection step. Each type has different rights and response deadlines.
The legal questions usually are:
- is the tax correctly assessed
- are penalties appropriate
- what payment options exist
- what enforcement powers can be used
- what deadlines control appeal rights
Some notices allow dispute of the tax. Others no longer allow challenge and instead concern collection alternatives.
Understanding which stage you are in matters more than the amount listed.
What I review first
Initial review focuses on identifying the stage of the case:
- the actual IRS or state notice
- tax year involved
- prior correspondence
- filed or missing returns
- payment history
The objective is determining whether the issue is assessment, appeal rights, or collection enforcement.
This service addresses tax disputes and enforcement problems. Preparation of tax returns is handled by a tax preparer or accountant, though coordination often occurs.
What legal action can accomplish
Depending on the stage, legal work may:
- respond to an audit or examination
- request administrative review or appeal
- negotiate payment arrangements
- seek penalty relief
- stop or modify collection activity
- resolve a filed lien or levy
The goal is moving the case from uncontrolled escalation to a defined resolution path.
How resolution usually happens
Tax matters generally follow a structured process:
- Notice analysis — determine rights and deadlines
- Required response — preserve appeal or negotiation options
- Administrative resolution — many matters resolve here
- Collection alternatives — payment plans or negotiated resolution
- Enforcement only if unresolved
Many problems can be stabilized once the correct response is submitted and communication with the agency is structured.
Deadlines and enforcement
Tax deadlines are strict.
Missing a response period can eliminate the ability to dispute the tax before collection begins. After certain deadlines pass, options shift from contesting the amount to dealing only with collection.
Collection actions may include:
- wage garnishment
- bank levy
- tax lien affecting property or credit
Early review preserves rights that cannot be restored later.
Timing and avoidable mistakes
Common problems:
- ignoring early letters
- waiting for multiple notices before acting
- assuming payments automatically stop enforcement
- failing to file missing returns
- responding informally without understanding the stage
The amount owed often increases because deadlines passed, not because the original tax was large.
FAQ
Do I need a tax preparer or a lawyer?
Both may be involved. Preparation of returns is accounting work. Disputes, deadlines, and enforcement are legal matters.
Does calling the IRS solve the issue?
Sometimes temporarily, but without a structured response the problem usually returns.
Will the IRS immediately take property?
Typically there are multiple notices first, but deadlines within those notices control available rights.
Next step
If you received an IRS or state tax notice, a consultation determines the stage of the matter, applicable deadlines, and available resolution options before penalties or enforcement escalate.
Call 720-588-3529 or request a consultation.