Tax Resolution and Representation before the IRS

Enrolled agents (EAs) are federally authorized tax practitioners who have demonstrated a high level of competence in the field of taxation. They are licensed by the U.S. Department of Treasury’s Internal Revenue Service (IRS) and are authorized to represent taxpayers before the IRS in all matters, including audits, collections, and appeals.

To become an enrolled agent, a person must pass a comprehensive IRS test on individual and business tax returns, or have worked for the IRS for at least five years in a position that required them to regularly interpret and apply the tax code. EAs are also required to complete continuing education courses to maintain their enrolled agent status.

Enrolled agents are an alternative to using a CPA or attorney for tax-related issues, and can provide many of the same services, such as preparing and filing tax returns, representing taxpayers during an audit, and providing tax planning advice.

Enrolled Agents can provide tax resolution to taxpayers who owe back taxes to the IRS.

Here are some common tax resolution options:

  • Installment Agreements: An installment agreement is a payment plan that allows taxpayers to pay their tax debt over time. The IRS offers different types of installment agreements depending on the amount owed and the taxpayer's financial situation. The IRS will review the taxpayer's financial situation and may require additional documentation to support the request. Once approved, the taxpayer will be required to make regular payments until the tax debt is paid in full.

  • Offer in Compromise (OIC): An offer in compromise is a settlement agreement between the taxpayer and the IRS that allows the taxpayer to settle their tax debt for less than the full amount owed. To be eligible for an OIC, the taxpayer must have filed all required tax returns, made all required estimated tax payments for the current year, and be current with all tax deposit requirements for business owners. The taxpayer must also meet certain financial criteria to qualify. The IRS will review the taxpayer's financial situation and may require additional documentation to support the request. If approved, the taxpayer will be required to make a lump sum payment or set up a payment plan to pay the settled amount.

  • Penalty Abatement: An Enrolled Agent can request that the IRS waive or reduce the penalties and interest that have accrued on a taxpayer's tax debt. The IRS may grant penalty abatement in cases where the taxpayer can demonstrate reasonable cause for the failure to pay, such as a serious illness or natural disaster.

  • Innocent Spouse Relief: Innocent spouse relief is available to taxpayers who filed a joint tax return with their spouse and are facing tax debt due to their spouse's actions or omissions. To be eligible for innocent spouse relief, the taxpayer must meet certain criteria, such as not having knowledge or reason to know of the erroneous item on the tax return. T

  • Currently Not Collectible (CNC) Status: Currently not collectible (CNC) status is an option for taxpayers who are unable to pay their tax debt due to financial hardship. If the IRS grants CNC status, they will temporarily delay collection activities, such as liens and levies, until the taxpayer's financial situation improves.

  • Bankruptcy: In some cases, a taxpayer may be able to discharge their tax debt through a bankruptcy proceeding. However, discharging tax debt through bankruptcy can be a complex process and requires the assistance of an experienced bankruptcy attorney. Taxpayers should consult a qualified bankruptcy attorney to determine if bankruptcy is a viable option for their situation.

Tax Resolution Process

Step #1 Discovery

To get started with our tax resolution services, you will need to take the following steps:

  • Schedule a complimentary "Get Started with the IRS Tax Debt Resolution" appointment.

    After the appointment, if you are ready to proceed:

  • Create a secure portal account, where you can safely upload any correspondence you received from the IRS or state tax authorities, as well as sign your contract, pay the bill or chat with your tax resolution specialist if needed.

  • Sign the contract for discovery engagement and Power of Attorney forms, which allows us to represent you before the tax authorities.

  • Pay the retainer

  • Once the POAs are processed, and initial financial analysis is performed, you will get notified you to schedule a follow-up appointment. During this appointment, we will discuss your case in details and explore possible tax resolution strategies that are best suited for your situation.

Step #2 Compliance

Before we can start working on tax relief and penalty abatement, it's important to ensure compliance with the IRS. This means that all back taxes must be filed before we can proceed with tax resolution strategies.

Once you have filed all of your tax returns, we can move forward with developing a tailored plan to address your tax issues. Your tax resolution expert will work with you to determine the most appropriate tax resolution options and negotiate with the IRS on your behalf.

By taking the necessary steps to become compliant with the IRS, you'll be on the path to resolving your tax issues and achieving financial stability.

During this step, your tax accountant will stay in touch and might request additional information needed to prepare your tax returns. All the communication is done through our secure portal.

In case there’s no delinquent tax returns to file, you can go straight to the tax resolution step.

Step #3 Resolution

Once you're compliant with the IRS, we can begin working on various tax resolution strategies, that were discussed during Tax Resolution Discovery appointment, which can help you reduce your tax debt, penalties, and achieve financial stability.

These strategies may include Offers in Compromise (OIC), installment agreements, innocent spouse relief, Currently Non-Collectible status (CNC) or other options that are best suited for your situation.

Our goal is to provide you with comprehensive tax resolution services that address your unique needs and help you achieve the best possible outcome with the IRS and the state. By working with AM Tax to become compliant and resolve your tax issues, you'll be on the path to financial freedom and have a piece of mind.