Common Tax Issues with Answers

I owe taxes and the IRS has contacted me; what do I do? Assuming that the balance owing is accurate (often they are not) you need to face the fact that you will likely have a tax payment as part of your current family budget. Pull IRS Form 433-A [...]

How long does the IRS have to collect on taxes I owe? Typically the IRS has 10 years to collect taxes from the point they are assessed. There are a number of events that may extend this time period. Common items that extend what is called the “statute of [...]

I am a business owner and have not filed my taxes and my records are missing. This is a surprisingly common situation where the first non-filed year becomes the second, and the second becomes the third year of non-filing, and the returns eventually don’t get filed. Typically the IRS [...]

I received an audit notice; what happens in the audit? I would pull the supporting documentation for all items on the return as step number one. Consider having a professional represent you in this situation as step number two. It will reduce your stress and allow a professional to [...]

The IRS found some honest mistakes on my return; what type of penalty? You may have what is called an accuracy-related penalty. The amount of an accuracy-related penalty typically equals 20 percent of the underpaid taxes attributable to your negligence, or disregard of the IRS’ rules or regulations. There [...]

I cut big corners on my tax returns and received an audit notice; what do I do? This case demands that you hire a representative for your audit. Depending on how big the corners are, you may have a case that would lead to a return that is deemed [...]

I represented myself in my IRS audit, where the agent made large adjustments to my return and then disappeared. What’s up? My initial thought is that your case may have been referred to IRS-CID (Criminal Investigation Division). This is the section of the IRS that deals with fraudulent filings [...]

I am getting a lot of pressure from the IRS auditor; what do I do? IRS or state examination is not designed to be fair or to leave any amount that can be taxed, untaxed. Agents at times can be aggressive, rude, and assume the worst. You have three [...]

I received a bill as a result of an IRS audit by mail; what do I do? You were caught up in what is called a “mail, correspondence or CP2000 audit.” Under this program, information that the IRS receives is matched to information that should be on your tax [...]

I received a certified letter from IRS stating to appeal I have to file my case in tax court; help! You have received what is commonly called a Notice of Determination (“NOD”) or a 90 Day Letter. This letter is saying that your assessment (amount of taxes owed) needs [...]

I received notice of IRS audit results; what’s next? Typically the information that IRS uses will get reported to your state if the closure of the audit is within the three-year statute of limitations following your original tax return filing date. State information in an audit may also get [...]

I received a notice from the State of Oregon for tax returns I did not file; what to do? The Oregon Department of Revenue (ODR) is capable of filing what is called a statutory filing based on third party information from the federal government or other third parties. That [...]

I had an audit with State Oregon; what’s next? The first letter that you get will be what is called a Proposed Audit Adjustment. The letter will detail what adjustments were made on the tax return. On Page 2, will be a date that you must respond back to [...]

I missed the State of Oregon audit written objection or conference appeal; what do I do? Following the 30-day appeal options that the Notice of Deficiency gives you, a Notice of Assessment will be issued. So you are still in good shape. You have appeal rights with this letter, [...]

I am planning to appeal my Oregon tax issue with the court; are there any issues I need to be aware of? Good question as there are several issues that occur following the issuance of the Notice of Assessment (NOA). Thirty days after the issuance of the NOA, the [...]

I am filing my Oregon tax appeal in Magistrate Court; what does this process look like? You may represent yourself here. That’s the good news. You will need to file a Complaint in the Magistrate Court that alleges that the assessment that ODR made was incorrect and the reasons [...]

Is Oregon Magistrate Court the end of the story in the event that I lose? No, you have one more appeal right through the Oregon Tax Court Regular Division. Here you will have to hire an attorney and the rules of Court are more formal than the Magistrate Court. [...]

I am being audited by the Oregon Department of Revenue; what to do? My opinion is that the Oregon Department of Revenue (ODR) is much more difficult that IRS when it comes to audits. Auditors are more detailed in terms of what constitutes substantiating documentation (items that establish income [...]

I received a notice from the Oregon Department of Revenue Employment Department with billings for payroll taxes when I had no employees; how do I fix this? I see this all the time. What likely happened is when your business was registered there was a box checked on the [...]

In Your “Best Interests”? Responding to IRS and state notices. When the IRS or state taxing agencies send you their “Notice” letters—especially if they have been sent certified mail—they are designed to create fear and apprehension. The first part of the letter is ominous – ”You’ve done something wrong!” [...]

I don’t have some very old business records that I need to file returns; can you help? Yes, I can. I don’t promise that it will be easy, but there is a way, and I can make it as clear as possible. I suggest starting by gathering as much [...]

The IRS has offered me an option to appeal through tax court; help! You’ve received a “90-day Letter” that as the name indicates your appeal needs to be filed within 90 days of the date of the letter. Look online and you can get some generalized information about the [...]

I can’t pay my taxes; what can I do? You have options, so don’t worry. You just need to get on this so it doesn’t lag (IRS hates things that just drag on and on, and state taxing authorities likewise have even less patience). Your options will depend entirely [...]