How CPAs Can Help With Tax Problems

While problems with the IRS are always serious issues, there are many ways a CPA can reduce your tax liability and help you set up payment plans in order to prevent crippling fines, property seizure, or prison time.

IRS Audits

An IRS audit involves a comprehensive review of the items reported on your tax return, and typically results in the IRS recalculating your taxes and issuing a large tax bill.

In other words, it involves a lot of time, stress, and money. 

You can mitigate a lot of this damage if you can prove that their recalculation wasn’t accurate due to their lack of understanding of your transactions.

This can be accomplished with the help of a CPA. He or she will give you the professional and legal advice you need, as well as present strategies that you probably aren’t aware of, to defend yourself in this scenario. 

CPAs act as attorneys—they can represent you before the IRS. And if you know anything about the legal system, it should be that trying to represent yourself is almost never a good idea.

Back Taxes

This is a common issue people face in the US each year. 

If you haven’t paid enough taxes in the past, the IRS can eventually impose penalties that have built up over many years.

CPAs help you find solutions to this problem, one of the main ones being the reduction of your liabilities for IRS-imposed penalties.

Non-Filed Tax Returns

Failing to file your tax returns can result in more than mere monetary penalties—it can land you in prison. 

CPAs can help you prepare and file your non-filed returns to help you avoid this outcome, as well as help you negotiate fine reduction and implement payment plans.

IRS Liens

One of the penalties the IRS can issue is a lien on your home or other assets. This can result in your inability to take out a mortgage, open a checking account, or get a credit card

The IRS will send you a notice with the threat of a lien on your property, at which point you should contact a CPA—he or she can prevent the lien from taking place.

IRS Levy

The IRS can take money directly from your bank account, but with the help of a CPA, there are steps you can take to avoid this problem or make it end as soon as possible. 

CPAs can often get their clients out of these situations while simultaneously lowering their tax liability.

IRS Seizure

The IRS has the ability to outright seize your property, including your home, vehicle, and other assets. These are then sold—typically at a far lower price than their actual market value—in order to make up your tax liability.

This is typically something they do after several failed attempts at collecting the taxes you owe, issuing penalties, interest, and so on.

CPAs can prevent this from happening and help you establish ways to pay back taxes without suffering the harsher penalties of the IRS.