Addressing Tax Assessments from Georgia/States While Addressing an IRS Audit

Addressing Tax Assessments from Georgia/States While Addressing an IRS Audit

When Uncle Sam Comes Knocking and the IRS is auditing your return, often the issues get even more complicated when states assess tax monies based upon the preliminary figures given to them by the Internal Revenue Service. This is especially problematic, when the IRS has initially disallowed items that the taxpayer has proper and adequate documentation for, as suddenly a taxpayer is dealing on two fronts to strive to get their tax account correctly resolved.

It is especially prudent to request the state to withhold and suspend collection efforts while an IRS audit is underway to ensure that only just and fair taxes are pursued and subsequently paid. Accordingly, it is prudent in such circumstances to send GA/your home state a letter if such an event occurs in order to give the IRS adequate time to access and correct a taxpayers account. In all tax issues prudence, honesty, having the right documentation, working with a qualified CPA, and expediency are integral components of a successful IRS representation experience. I have presented below what a sample letter might look like when coordinating such issues with GA/your state:

Georgia Department of Revenue
Atlanta, GA

I am writing you in a good faith attempt to come to terms over the above taxpayers' present predicament and to address their tax issues. I am willing/eager to supply you with any information that you might need in order to process your file.

Please note I have forwarded to the IRS (see our enclosed letter) all of the items that they have requested to conduct their audit. At present the IRS assessment, which GA is using, is substantially higher than what ultimately will be determined to be owed. We have forwarded to the IRS substantial volumes of information for them to address the issues they requested documentation for. Accordingly please cease all collection efforts and assessments for sixty days while we work with the IRS to determine and adjust their final liability. ASAP after a final determination is made I will forward to you copies for your file and final billing.

I appreciate your attention to this matter and look forward to working with you to close their file.

Sincerely,
John C. Dillard, CPA, PC
Partner in Charge

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/ (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!