1. RESEARCH OF YOUR IRS ACCOUNT
We have one staff person whose main duty is contacting the IRS Practitioner Hotline on behalf of our clients. She finds the compliance history of our client's -- be they business or an individual,-- answering questions like A. What years do they owe taxes? B. What years are unfiled? C. She orders the transcripts (W2's, 1098's, etc.) so returns can be prepared and D. Finding out when the taxes expire or CSED's "collection statute expiration dates." E. Determining whether balances due were thru the IRS' filing or the client's F. Determine what returns the IRS is really looking for to avoid doing unnecessary (usually older) returns. G. Find out where the client stands -- are they in collections? Is their case assigned to a Revenue Officer?
2. POWER OF ATTORNEY IS FILED AND COLLECTION HOLD IS PUT IN PLACE
Our Enrolled Agents or Attorneys contact the IRS on your behalf to make sure that collections are on hold. If you are currently being LEVIED, we lay the groundwork so the LEVY can be released on your bank account or wages as soon as possible, finding out what needs to be done from the IRS to achieve this relief for our client.
3. TAX RETURNS ARE PREPARED
Our client either is going to hire our excellent tax preparer - Pam Raines, E.A., to prepare their returns OR their transcripts are going to be emailed to them with limited guidance how to prepare them themselves at no extra charge.
4. TEMPORARY RESOLUTION OF TAX ISSUE AND TAX DEBT
Once the returns are done, the levies are released and contact with the IRS has been established, it's time to put the final resolution in place. Resolution usually takes the shape of 1. Uncollectible status. Where the IRS does NOT require any payment. Case closed (except for filing of Tax Lien) OR 2. An affordable installment agreement is established for the taxpayer. Either of the two is usually achieved by our staff creating financial statements to demonstrate our client's ability or inability to pay the IRS.
5. FINAL RESOLUTION OF TAX DEBT.
If our client's case is clearly out of the collection process, it is time to look a procedure to resolve the debt once and for all. If our client has been in an installment agreement, we look at getting the IRS to waive penalties (and some interest) (PENALTY ABATEMENT). Or if our client is willing or ready to get this off their record completely, we look at SETTLING THEIR DEBT by filing an Offer in Compromise - Doubt as to Collectability.
Salespeople from the firms on our list of 150-- may make it more glamorous than the above, BUT what we described is how it really happens. However, in our 25 years of working in tax resolution, we have discovered that the 1st point -- RESEARCH is essential before doing anything else.