John Dillard is an author and Certified Public Accountant. To See how he takes Christ along with him to work visit www.HisCPA.com
March 17th, 2010 07:00 AM ET
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Atlanta CPA: Tax Guidance for Taxpayers Seeking Tax Relief

Atlanta CPA: Tax Guidance for Taxpayers Seeking Tax Relief

So you've just gone to your mailbox and much to your chagrin you have received an IRS notice. Your immediate reaction is one of fear and dread as your pulse races and you are not certain of what to do next. Although most certainly your initial reaction will be as described, there is a different path to resolving all audit issues to yours and the IRS's satisfaction and to close your audit with no additional monies due. The first thing I always encourage taxpayers to do is to hire a CPA who is well experienced in handling tax issues, audits, levies, garnishments and collection efforts. For just as you might not be able to read a book and do your own major surgery so are your opportunities for success limited when you chose to represent yourself before the IRS. It is also noteworthy to consider whether a taxpayer might be a successful candidate for an Offer in Compromise and to carefully consider all the options before selecting the one that is best suited to address a particular client. Below is a sample letter that might be used to address old and previously unfiled back taxes:

Internal Revenue Service, Atlanta GA 39901

I am writing you in a good faith attempt to come to terms over the above taxpayers' present predicament and to file all of their unfiled income taxes. Please suspend all collection efforts and the levy on the wages the taxpayer as I have previously forwarded on 2-20-10 all of the unfiled tax returns for the 2006 to 2009 tax years and have enclosed a check to pay the total tax and interest will requesting that the IRS abate the penalties. I had previously forwarded a check for $3,000 which we asked to be recorded as follows:

Tax Year Tax Per Original Return (Return Enclosed)
2006 1000
2007 1000
2008 1000
2009 500
Total Original Taxes $3500
Add Estimated Interest 500
Less 1-22-10 wage garnishment 1000
Total Check Enclosed $3000

Please apply on the IRS records the above garnishments to the taxpayers original tax liabilities for the outstanding years. Then apply the check enclosed first to the original tax liability and then to the accrued interest assessed as determined above. After you have applied the monies as per the above, this would make the account reflect no original taxes nor interest due.

I am asking you to abate all of the assessed penalties as the taxpayer has faithfully responded by meeting the due date we agreed to of filing the returns by January 15, 2010. Accordingly by nature of their response and the enclosed check for the difference I believe it is a just and fair request to abate all of the previously assessed penalties.

Having a ongoing levy/wage garnishment against the taxpayers substantially impairs the taxpayers ability to address their ongoing financial obligations and indeed impair their ability to live, pay their past taxes and ongoing mortgage, medical costs etc. Accordingly please cease all collection efforts of the taxpayer while the IRS is able to process the above check to settle their account in full, abate their tax penalties, and to process the above checks being returned and to close their file, with no monies due.

The taxpayers had no financial adviser in the past and they have retained me to assist them in this endeavor. At your earliest opportunity please call and confirm that the collection efforts have been stopped.

Please do not hesitate to contact me if you have any questions. Sincerely, John C. Dillard, CPA, PC, Partner in Charge

I am looking to grow my business by adding key accounts like you with goals and aspirations just like yours. So if you know anyone looking for a Good CPA, please let me know and to check me out at www.HISCPA.com or our book ministry at www.John-Dillard.com Please be sure to allow 10 days for me to complete the returns.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/  http://www.john-dillard.com/  To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

His CPA PC...A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits. Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it! 

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About this blog
John Dillard, an author and Certified Public Accountant, serves HIM by serving you with his expertise in this blog... one tax return at a time!
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