Tax Representation

Tax Representation allows a CTR professional, usually a CPA, enrolled agent (EA), or tax attorney, to “take your place” in front of the IRS. By filing a Form 2848, Power of Attorney and Declaration of Representative , you are allowing licensed individuals to represent you before the IRS. This form allows licensed professionals, such as attorneys, CPAs and Enrolled Agents, to represent taxpayers in any department within the Internal Revenue Service. What is the purpose of an IRS Power of Attorney? The Form 2848, Power of Attorney, allows your representative to do the following:

Determine notices issued by the IRS which will help you understand the status of your account. Receive account transcripts to conduct a full analysis of your tax history. Determine overall federal tax balances owed. Determine the collection status on your IRS account. Access previous year’s tax return filings, even if they are prepared by somebody else. Research your federal tax account for compliance with tax filings and deposit/withholding requirements. Receive copies of all notices the IRS sends to you. Respond to IRS notices as they become issued. Negotiate holds of enforced collection action such as bank levies, wage garnishments, and asset seizures. Negotiate resolutions with the IRS such as Installment Agreements, Offers In Compromises, and discharges of federal tax liens. Represent you with the (TAS). Appeal and dispute actions taken by the IRS. Represent you in a tax audit or audit reconsideration.
The Form 2848, Power of Attorney, does not do the following:
Represent taxpayers in any form of court (i.e. Supreme Court, District Court, Bankruptcy Court, etc.)
Represent taxpayers outside of the authority of the Power of Attorney at the IRS; meaning, it holds no weight with other federal agencies or state and local governments.

Tax Preparation

When you turn to CTR for help filing your delinquent tax returns, getting up to date is easier than you think. Whether you have a tax refund to claim or end up owing back taxes, we’ll provide the personal attention and guidance that will make the process as painless as possible. We’ll assist you in obtaining income forms like W-2s and 1099s, locating mortgage interest statements, and gathering any other critical documentation needed to accurately calculate your taxes. Then we’ll prepare and file your tax returns, being mindful of any deductions or credits available.

Offer in Compromise

 An offer in compromise is the requested tax debt settlement we propose to the IRS or state tax officials on your behalf. Based on the understanding that you will likely never be able to pay the IRS in full, an offer in compromise is a way for the IRS to collect some of the monies owed and a way for you to completely resolve your tax problems. Not everyone is eligible for an offer in compromise settlement, so be sure to have a qualified tax lawyer review your particular situation before proceeding. 

Payment Plan

Although the IRS can be a difficult and unfriendly organization to deal with, they are also very logical and practical. They know that they can’t collect money that isn’t there, which is why they allow taxpayers to pay off their debt over time. This form of tax resolution is often the easiest and most effective way for the IRS to collect all the money they are owed.

Installment plans are a practical way to resolve the tax debt that works well for both the IRS and the taxpayer. Though you will typically have to pay additional fees in the form of penalties and interest, setting up a payment plan is a tax resolution option that can get you back on a track and eventually free you of your tax burden.

Penalty Abatement

If you have been assessed penalties for failing to file or pay your taxes timely, you may be able to get those penalties erased, or even get past penalties and interest refunded, through penalty abatement or penalty adjustment.

Penalty abatement means completely removing an imposed tax liability, while penalty adjustment reduces an imposed tax liability. If there is a reasonable cause for abatement or adjustment, the IRS may be willing to reconsider the penalties in question. Reasonable cause can consist of:

  • Fire, flood, natural disaster, or other disturbances

  • Death or serious illness of the taxpayer or the taxpayer’s immediately family

  • Error by an IRS employee or inability to obtain records when requested

  • Mailing the tax return or payment on time but including the incorrect address on the envelope or incorrect amount of postage

Hardship Status

IRS Hardship is for taxpayers not able to pay their back taxes. The technical term used by the IRS is Currently Non-Collectable Status.

If you owe taxes but you are unable to pay because you have just enough money to support yourself and your family, you can apply for IRS Hardship. The IRS will not seize your property, take your paycheck, or wipe out your bank account while you are in IRS Hardship. IRS Hardship will not remove the back taxes. You will still owe back taxes.

Innocent Spouse Relief

One of the most commonly rejected claims by the IRS is innocent spouse relief. This relief allows a taxpayer to escape liability when their spouse incurred understated income or overstated expenses, the taxpayer had no knowledge of the under or over reporting and it would be unfair to hold the taxpayer liable. These are extremely high hurdles to overcome and the skill and experience of a tax attorney can quickly narrow down your options. In addition to innocent spouse relief, the IRS provides other equitable remedies for spouses who are not directly responsible for a joint tax liability.

Stop Collection

Levy – The IRS and state taxing authorities literally empty money out of business’s bank accounts, often crippling their ability to pay bills and make payroll. Every day we are helping keep business open by halting or reversing bank levies. It’s best to proactively avoid them of course.

Garnishment – The IRS can garnish your wages without taking you to court. And, it can take a higher amount of your wages than a private creditor could. Generally, they’ll garnish 70% or more of your income. They have to leave just $375 from each of your paychecks so you can support yourself and your household. But, if you’re self-employed, they can take all of your income.

Liens – When the IRS or state files a tax lien on your business it’s a matter of public record, and that can be bad for business. By getting ahead of the tax issue, we can often prevent tax liens. We may have a tax lien removed for business property transactions as well.

Tax Audit Defense

If your tax return has been selected for an IRS audit, don’t worry. We’ve represented many clients (individuals and businesses) during their tax audits. You may believe that you haven’t done anything wrong; however we always recommend having an experienced tax professional on your side. CTR will help you understand your rights as a taxpayer, serve as a buffer between you and the taxing authorities, and give you the protection and defense you deserve.