Got a letter? Three things first
- Don't ignore it. Every IRS letter has a response date, often 30 days out. Miss it and your options shrink. A Final Notice of Intent to Levy, for example, gives you 30 days to ask for a hearing.
- Don't panic. Many IRS letters are a matching problem: a 1099 the IRS has that wasn't on your return, or a payment applied to the wrong year. Those usually have a straightforward fix.
- Make sure it's real. Scammers copy IRS letters and make threatening calls. The real IRS starts with a letter in the mail and never demands gift cards or wire transfers.
Is this for me?
Yes, if you have a notice from the IRS or the Texas Comptroller, if you haven't filed a return for one or more years, if you owe more than you can pay, or if a letter needs a response you don't understand.
What happens
I read the letter with you, and you get a plain-English explanation of what it says. I look at the return it's about and the records behind it. Then I lay out your options, what each one would mean for your tax, and which one I'd pick. If you want me to handle the response and the calls, you sign a power of attorney (Form 2848) and I take it from there.
What I help with
- CP2000 underreported income notices
- Balance due notices (CP14, CP501, CP503, CP504)
- Correspondence and office audits
- Penalty abatement, including first-time abatement
- Unfiled returns and substitute returns
- Installment agreements and payment plans
- Liens, bank levies and wage garnishments
- Identity theft and IP PIN issues
- Texas Comptroller franchise and sales tax notices
- Payroll tax notices for businesses
What to bring
Every page of the letter, including the notice number and the response date. The return it's about, if you have it. Any reply you already sent. Your questions, written down, so the first call goes faster.
IRS or Comptroller letter checklist
About offers to settle for less. An offer in compromise is real, but the IRS accepts one only when it concludes it can't collect the full amount. It looks closely at your income, expenses and assets first. Ask any firm for a straight answer on whether you qualify before you pay anyone. I'll tell you honestly whether you're a candidate before you spend anything.
Common questions
I got a CP2000. Does that mean I'm being audited?
Not exactly. A CP2000 is an automated proposal. The IRS matched the forms it received (W-2s, 1099s, brokerage statements) against your return and found something that doesn't line up. Sometimes the IRS is right, and sometimes it's missing your side, like the cost basis of stock you sold. You can agree, partly agree or disagree, but you have to answer by the date on the letter.
Can you get my penalties removed?
Often, yes. If you had a clean record for the prior three years, first-time abatement can remove failure-to-file and failure-to-pay penalties for one year, and it's usually straightforward when you qualify. Otherwise we ask for reasonable-cause relief, which depends on what actually happened: illness, a death in the family, a disaster, or bad advice.
I haven't filed in a few years. What now?
Come in, and don't wait for the IRS to do it for you. When you don't file, the IRS can prepare a substitute return that ignores most of your deductions, and the bill it produces is usually far higher than the real one. The IRS generally wants the last six years on file before it treats you as caught up. From there we can talk about payment options.
Do I have to talk to the IRS myself?
Usually not. As a CPA, I can represent you before the IRS with your signed power of attorney (Form 2848). Calls and letters can come to me, and in many cases you'll never have to speak with an IRS employee.
How do I know a letter or call is really from the IRS?
The IRS almost always starts with a letter in the mail. It doesn't demand payment by gift card, wire or crypto, and it doesn't threaten arrest over the phone. If you're not sure, don't call the number on the letter. Bring it to me, or look up the notice number on irs.gov.