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<h3>IRS Notice of Deficiency: What It Means and What to Do Next</h3><p>Few things cause more anxiety than opening your mailbox and finding a letter from the IRS. One of the most serious letters you can receive is a Notice of Deficiency—sometimes called a 90-day letter.</p><p>If you live in San Antonio, Texas, and you’ve received this notice, don’t panic. With the right information—and the right legal help—you can take control of the situation.</p><h3>What Is an IRS Notice of Deficiency?</h3><p>A Notice of Deficiency is the IRS’s formal letter stating that it believes you owe additional taxes, along with possible penalties and interest.&nbsp;&nbsp;This notice is not just a bill—it’s a legal document informing you of your right to dispute the IRS before the tax is officially assessed.</p><h3>Why Is It Called a “90-Day Letter”?</h3><p>You have 90 days (150 days if you’re outside the U.S.) from the date of the notice to file a petition with the U.S. Tax Court if you disagree with the IRS’s determination.</p><p><strong>Act within 90 days:&nbsp; </strong>You can fight the IRS before paying anything.</p><p><strong>Do nothing:&nbsp; </strong>The IRS will assess the tax and begin collections.<br>This deadline is firm.&nbsp; Missing it means losing your chance to challenge the IRS in Tax Court.</p><h3>Why Did You Receive a Notice of Deficiency?</h3><p>The IRS may send this notice for several reasons, including:</p><p>Unreported income (W-2s, 1099s, investments, etc.)<br>Disallowed deductions or credits<br>Errors on your tax return<br>Adjustments following an audit</p><p>Sometimes the IRS is correct—but not always.&nbsp; In many cases, they rely on incomplete or inaccurate third-party information.</p><h3>Your Options After Receiving the Notice</h3><p>If you’ve received a Notice of Deficiency, you have options:</p><p><strong>Agree with the IRS </strong>– Sign and pay the balance due.<br><strong>Disagree </strong>– File a petition in Tax Court within 90 days.<br><strong>Explore resolution </strong>– Some cases can be resolved without going to court.</p><h3>What To Do Right Away</h3><p>Read the notice carefully to understand what the IRS is claiming.<br><strong>Check for mistakes</strong>—these notices often contain errors.<br><strong>Don’t ignore it</strong>—waiting past the deadline eliminates your right to contest.<br><strong>Consult a local tax attorney</strong>—professional representation can protect your rights and strengthen your case.<br></p><h3>Why Work With Ellis Tax Law?</h3><p>At Ellis Tax Law, we serve clients across San Antonio and throughout Texas who are facing IRS Notices of Deficiency. We:</p><p>Analyze the IRS’s claims to uncover errors.<br>Advise you on whether to file in Tax Court, negotiate, or resolve directly.<br>Represent you every step of the way—so you don’t have to face the IRS alone.</p><h3>Final Thoughts</h3><p>Receiving an IRS Notice of Deficiency is stressful, but you don’t have to face it by yourself. You have rights, options, and time to act—if you move quickly.</p><p>📞 If you’ve received a Notice of Deficiency in San Antonio or anywhere in Texas, contact Ellis Tax Law today to schedule a consultation. We’ll help you respond with confidence.&nbsp; &nbsp;</p><figure id="figure-3liqjxi42fmeehrl0y" class=""><img id="3liqjxi42fmeehrl0y" src="https://media.gettyimages.com/id/2204856220/photo/tax-preparation-and-analysis-woman-sorting-tax-documents-in-a-modern-office-environment.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=SonTrkKAIgg9OiM-pCewhWHgYq8Gy3sLulYpzHPnev0=" alt="tax documents" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://media.gettyimages.com/id/2204856220/photo/tax-preparation-and-analysis-woman-sorting-tax-documents-in-a-modern-office-environment.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=SonTrkKAIgg9OiM-pCewhWHgYq8Gy3sLulYpzHPnev0=" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Frequently Asked Questions About IRS Notices of Deficiency</h3><p>❓ <strong>What is an IRS Notice of Deficiency?</strong><br>An IRS Notice of Deficiency—also called a 90-day letter—is the IRS’s formal notice that it believes you owe additional tax. It also gives you the right to challenge their determination in Tax Court before paying.</p><p>❓ <strong>Why did I receive an IRS Notice of Deficiency?</strong><br>You may receive this notice if the IRS believes you underreported income, claimed incorrect deductions or credits, made errors on your return, or if they adjusted your return during an audit.</p><p>❓<strong> How long do I have to respond to an IRS Notice of Deficiency?</strong><br>You have 90 days (150 days if you’re outside the U.S.) from the date on the notice to file a petition with the U.S. Tax Court. If you miss the deadline, the IRS will assess the tax and begin collection.</p><p>❓<strong> Do I have to go to court if I disagree with the notice?</strong><br>Not always. Sometimes issues can be resolved directly with the IRS or through negotiation. However, if you want to formally contest the notice without paying first, filing in Tax Court is your best option.</p><p>❓ <strong>Should I hire a tax attorney for an IRS Notice of Deficiency?</strong><br>Yes. These notices are serious legal documents. Ellis Tax Law can review the IRS’s claims, identify errors, and represent you before the IRS or Tax Court.&nbsp;&nbsp;</p>

IRS Notice of Deficiency

<h3>Understanding the IRS Appeal Process</h3><p>When dealing with the IRS, receiving an unfavorable decision or proposed adjustment is often not the end of the road.&nbsp; Most of the time, you have the right to appeal. The IRS appeals process is an opportunity to have your case reviewed by an independent IRS office of appeals that is separate from the IRS office that made the initial decision.&nbsp; In complex cases that do not get resolved in appeals, a timely-filed IRS appeal can be a crucial stepping stone to U.S. Tax Court.&nbsp; The appeals process, with the right guidance, can protect you from IRS collection actions while you work to negotiate a resolution.&nbsp;</p><figure id="figure-y3m1syos4smdxchlwt" class=""><img id="y3m1syos4smdxchlwt" src="https://media.gettyimages.com/id/1468910398/photo/capital-gains-internal-revenue-service.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=RvRKck6XB_PRCVHgN2xfg9DranvYwGmOWZ8bd3c6U1o=" alt="irs appeal process" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://media.gettyimages.com/id/1468910398/photo/capital-gains-internal-revenue-service.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=RvRKck6XB_PRCVHgN2xfg9DranvYwGmOWZ8bd3c6U1o=" data-mce-style="aspect-ratio: 16/9;"></figure><p>Appealing an IRS decision involves several steps and understanding each one is crucial.&nbsp; Initially, you will receive a letter explaining your right to appeal. This letter outlines the specific points you can challenge and provides a deadline for when your appeal must be submitted. It's essential to avoid missing the deadline because if you miss it, you lose valuable taxpayer rights and protections. &nbsp;<a href="https://www.irs.gov/taxpayer-bill-of-rights#appeal" data-mce-href="https://www.irs.gov/taxpayer-bill-of-rights#appeal">See IRS Taxpayer Bill of Rights</a> &nbsp;</p><h3>Don't Miss Your Appeals Deadline</h3><p>Most appeals deadlines are 30 days from the date of the IRS notice, although some are 60 or 90 days.&nbsp; The notice will provide the deadline.&nbsp; The best practice is to start seeking help as soon as you receive the notice so you have time to get a tax attorney on board to represent you before the IRS and you can provide the attorney the information needed to file the appeal.&nbsp; However, if you miss your appeals deadline, all is not lost.&nbsp; You still have options to address the tax problem outside of IRS Appeals, and you may even be entitled to an "equivalent hearing,"which is an appeals hearing without the right to take your case to U.S. Tax Court if you don't like the result.&nbsp;&nbsp;</p><h3>Prepare Your Documentation</h3><p>One of the most important aspects of a successful IRS appeal is thorough documentation. You should gather all relevant paperwork that supports your case, including documents already presented to or received from the IRS relating to your case, a complete copy of the IRS notice setting forth the IRS determination or proposed adjustments, and any other pertinent documents. Organizing these documents will help you present a clear and compelling case to the IRS.</p><h3>Seek Professional Guidance</h3><p>While it's possible to handle an IRS appeal on your own, seeking help from a tax attorney will give you a significant advantage.&nbsp; Melissa Ellis, Tax Attorney, has more than 25 years of experience filing and negotiating IRS appeals, and she will offer valuable insights and strategies tailored to your specific situation.&nbsp; Melissa can help you identify potential weaknesses in your case and provide expert advice on how to strengthen your position.&nbsp; She will navigate the intricacies of the appeals process and provide you with your best chance for success.</p><figure id="figure-panu6nhxq4mdxchlwt" class=""><img id="panu6nhxq4mdxchlwt" src="https://media.gettyimages.com/id/2158255780/photo/meeting-businessman-and-woman-with-paperwork-for-advice-planning-and-conversation-at-table.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=vrpOz1XoNUJHsj6HYjnhPRUF7aYYFa32Qyaj2OnBCgg=" alt="tax professional" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://media.gettyimages.com/id/2158255780/photo/meeting-businessman-and-woman-with-paperwork-for-advice-planning-and-conversation-at-table.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=vrpOz1XoNUJHsj6HYjnhPRUF7aYYFa32Qyaj2OnBCgg=" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Crafting a Strong Appeal&nbsp;</h3><p>A well-drafted appeal is important to set the stage for the progression of your case.&nbsp; The appeal should clearly identify what is being appealed and the reasons for the appeal, explaining why you disagree with the IRS decision or proposed adjustment.&nbsp; A tax attorney will ensure that your appeal is properly filed to achieve the best outcome.&nbsp;&nbsp;</p><h3>Understanding Possible Outcomes</h3><p>After submitting your appeal, it's important to understand that there are several possible outcomes. The IRS may agree with your appeal and "sustain"&nbsp; it or reject it.&nbsp;&nbsp;If the IRS agrees with your appeal, in the case of a tax lien or levy, they may sustain your appeal and possibly put you in an installment agreement, accept an offer in compromise, or provide penalty relief.&nbsp; In the case of an audit appeal, IRS appeals may agree with certain deductions that were disallowed during the exam and revise the proposed adjustments.&nbsp; These are just a few examples.&nbsp; If they reject your appeal, you may need to consider further options, such as taking your case to tax court.&nbsp;&nbsp;</p><h3>Stay Informed and Patient</h3><p>The IRS appeals process often is lengthy and complicated.&nbsp; It's important to stay informed about the status of your appeal and be patient as it progresses.&nbsp; Melissa Ellis will keep you informed as the case progresses and work with you to provide the IRS the information needed by the IRS.&nbsp; Patience and persistence are key. The appeals process is designed to ensure fair treatment, but it requires diligence and certain amount of fortitude.&nbsp;</p><h3>The Importance of Early Action</h3><p>Finally, taking early action can be crucial in handling an IRS appeal.&nbsp; The earlier you start, the better prepared you will be to present a strong case.&nbsp; Time is of the essence in these situations, and prompt action demonstrates seriousness and commitment to resolving the issue efficiently.</p><figure id="figure-4jc2fzw6jmdxchlwt" class=""><img id="4jc2fzw6jmdxchlwt" src="https://media.gettyimages.com/id/1098407382/photo/business-concepts-with-businessman-holding-clock-on-computer-laptop-for-investment-analysis.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=biTgAYZLC1WRlpfCVXDD0HxJLHV3ZdZtxpGZl722Lrg=" alt="timely action" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://media.gettyimages.com/id/1098407382/photo/business-concepts-with-businessman-holding-clock-on-computer-laptop-for-investment-analysis.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=biTgAYZLC1WRlpfCVXDD0HxJLHV3ZdZtxpGZl722Lrg=" data-mce-style="aspect-ratio: 16/9;"></figure>

Expert Tips for Handling an IRS Appeal

<h2>Understanding Tax Liens</h2><p>A federal tax lien can cause huge problems for taxpayers, especially when they apply for a loan or try to sell real estate in a county where a federal tax lien has been filed.&nbsp; Federal tax liens secure the IRS's interest in taxpayer assets until the tax debt is paid.&nbsp; See <a href="https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien" data-mce-href="https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien">Understanding a Federal Tax Lien.</a></p><figure id="figure-hlnzrdncsimdorumx7" class=""><img id="hlnzrdncsimdorumx7" src="https://cdn.durable.co/blocks/32iss3hzXR9LoJKlu35ARS5nLlUB9hAi5sOAufO8eqCIweaZmY2YqoPAOvOuZLqh.jpg" alt="tax documents" title="tax documents" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/32iss3hzXR9LoJKlu35ARS5nLlUB9hAi5sOAufO8eqCIweaZmY2YqoPAOvOuZLqh.jpg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><p>The tax lien is a passive collection tool, meaning it is a public notice to other potential creditors of the IRS lien, which affects your ability to get a loan and prevents you from selling or refinancing certain assets without satsifying the lien.</p><h3>Common Questions About Tax Liens</h3><p>The complexities surrounding tax liens often lead to numerous questions. Here are some frequently asked questions:</p><ol><li><strong>What triggers a tax lien?</strong> - A tax lien is triggered when you neglect or fail to pay a tax debt after the IRS has assessed your liability and sent you a bill that you ignored.</li><li><strong>How does a tax lien affect my credit?</strong> - Although tax liens no longer appear on credit reports, they can still impact your ability to secure loans or lines of credit as they are public records.</li><li><strong>I received a Notice of Federal Tax Lien Filing - What do I do</strong>? <strong>ACT FAST</strong>.&nbsp; These notices offer taxpayers an opportunity to appeal and request a hearing by a <em><strong>DEADLINE </strong></em>set forth in the notice.&nbsp; Don't miss the deadline.&nbsp; Consult a tax lawyer to discuss your rights.&nbsp;</li><li><strong>Can I have a tax lien removed?</strong> - Yes, paying your tax debt in full, setting up a direct debit payment plan when you owe $25,000 or less , in limited circumstances, satisfying the terms of an IRS accepted offer in compromise, or disputing the lien with valid evidence (very rare), can lead to removal of the lien. There are also ways to apply to get the lien removed in order to close on a loan or sell property, through applications for certificates of subordination or discharge, depending on the circumstances.&nbsp; These are often complex processes and an experienced tax lawyer is important for a successful outcome.&nbsp; &nbsp; &nbsp;&nbsp;</li></ol><h2>The Role of a Tax Attorney</h2><p>When facing a tax lien, having a tax attorney can make a big difference.&nbsp; A tax attorney can navigate the complexities of federal tax liens and provide valuable support in resolving your lien issues.</p><h3>How Can a Tax Attorney Help?</h3><p>A tax attorney can assist in multiple ways, including:</p><ul><li><strong>Applying for a Certificate of Subordination or Discharge:&nbsp;&nbsp;</strong>An experienced tax lawyer can help you close on your loan or real property transaction as quickly as possible.&nbsp; I have assisted numerous taxpayers over the past 25+ years with successful applications for subordination or discharge, allowing them to close on their loan or property transaction.&nbsp;&nbsp;</li><li><strong>Applying for a Certificate of Withdrawal</strong>.&nbsp; They can help you get the federal tax lien withdrawn from the public record if you qualify, such as in the case of an erroneous lien or a fully paid offer in compromise.&nbsp;</li><li><strong>Negotiating with the IRS:</strong> They can help negotiate payment plans or settlements on your behalf.</li><li><strong>Legal Representation:</strong> If your case escalates, having a tax attorney ensures you have representation before IRS collections, IRS appeals, U.S. Tax Court, or another court if appropriate.</li><li><strong>Expert Advice:</strong> A tax attorney can offer advice on minimizing future tax liabilities and avoiding potential future liens.</li></ul><h2>Benefits of Local Expertise</h2><p>Hiring a San Antonio-based tax attorney provides the added advantage of local expertise, which can expedite the resolution process. &nbsp;This is particularly important if your case has been assigned to a local revenue officer so that, in some cases, the tax attorney can meet with the revenue officer <strong>before</strong> the lien is filed. &nbsp;</p><figure id="figure-cykiaq42bqmdorumx7" class=""><img id="cykiaq42bqmdorumx7" src="https://media.gettyimages.com/id/2159129288/photo/san-antonio-skyline-aerial-with-river-walk.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Tnl8vpwyw4zeICRHN5UAnQxDEKth4HqpKSRR3x55qDk=" alt="san antonio cityscape" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://media.gettyimages.com/id/2159129288/photo/san-antonio-skyline-aerial-with-river-walk.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Tnl8vpwyw4zeICRHN5UAnQxDEKth4HqpKSRR3x55qDk=" data-mce-style="aspect-ratio: 16/9;"></figure><p>A local tax attorney also offers the convenience of face-to-face consultations, ensuring clear communication and a personalized approach tailored to your unique situation. This personal touch can be pivotal in managing the stress and complexity of dealing with a federal tax lien.</p><h3>Taking Action</h3><p>If a federal tax lien has been filed against you or if you are concerned about the possibility of one, it is essential to act promptly. Consulting with a tax attorney can provide peace of mind and set you on a path to resolving your lien issues as quickly and efficiently as possible.&nbsp; Don't wait until the situation worsens; seek professional guidance today.</p><p>Remember, understanding and addressing a tax lien is not just about resolving current issues but also about safeguarding your financial future. With the right assistance, you can navigate these challenges effectively and regain control over your financial health.&nbsp; Call me at 210-447-7572 or email me at <a href="mailto:melissa@ellistaxlaw.com">melissa@ellistaxlaw.com</a> for a free consultation.</p>

Federal Tax Liens and How a Tax Attorney Can Assist

<h3><strong>Understanding IRS Installment Agreements</strong></h3><p>Setting up an IRS installment agreement can be a practical solution if you find yourself unable to pay your tax bill in full. This payment plan allows you to pay off your debt over time, which can ease the financial burden and help you avoid more severe penalties. Taxpayers can take advantage of this option to manage their tax liabilities.</p><figure id="figure-wj2zdco3wum8xixkoe" class=""><img id="wj2zdco3wum8xixkoe" src="https://cdn.durable.co/getty/31scX4WsxYydqv3cTNVqjDvo3sqObZI4USWDkGcBqepDAcICYTUi77WF9UOEZiVt.jpeg" alt="tax payment plan" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/31scX4WsxYydqv3cTNVqjDvo3sqObZI4USWDkGcBqepDAcICYTUi77WF9UOEZiVt.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><p>Who Qualifies for an Installment Agreement?</p><p>Most taxpayers qualify for an IRS installment agreement, but there are certain criteria you must meet. Generally, individuals who owe less than $50,000 in combined tax, penalties, and interest can apply online. It's important to ensure that all your tax returns are filed before applying. If you owe more than this amount or have other issues, you might need to work directly with a tax attorney.</p><p><strong>Steps to Set Up an Installment Agreement</strong></p><p>To initiate an installment agreement, you can follow these steps:</p><ol><li>Log into the IRS website to access the <strong>Online Payment Agreement</strong> tool. <a href="https://www.irs.gov/payments/online-payment-agreement-application" data-mce-href="https://www.irs.gov/payments/online-payment-agreement-application">Apply Online for a Payment Plan</a>&nbsp;</li><li>Provide your financial information as requested.</li><li>Select a payment plan that suits your financial situation.</li><li>Submit your application and await confirmation from the IRS.</li></ol><figure id="figure-l3p6pigk4qm8xixpwk" class=""><img id="l3p6pigk4qm8xixpwk" src="https://cdn.durable.co/getty/389C8PVJptgeD18065333EckanriDSNYGDZbd8dcdeeHWwKDcWpWiwlNXT9SN5rF.jpeg" alt="online tax filing" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/389C8PVJptgeD18065333EckanriDSNYGDZbd8dcdeeHWwKDcWpWiwlNXT9SN5rF.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3><strong>Payment Plan Options</strong></h3><p>The IRS offers several payment plan options to accommodate different financial situations. See <a href="https://www.irs.gov/payments/simple-payment-plans-for-individual-taxpayers#:~:text=The%20new%20option%20is%20offered,or%20lien%20determination%20is%20required." data-mce-href="https://www.irs.gov/payments/simple-payment-plans-for-individual-taxpayers#:~:text=The%20new%20option%20is%20offered,or%20lien%20determination%20is%20required.">IRS Simple Payment Plans</a> and <a href="https://www.irs.gov/taxtopics/tc202" data-mce-href="https://www.irs.gov/taxtopics/tc202">Tax Payment Options</a>. The most common are:</p><ul><li><strong>Short-Term Payment Plans:</strong> Typically for balances paid in 180 days or less.</li><li><strong>Long-Term Payment Plans:</strong> Also known as installment agreements, these allow you to pay over more than 180 days.</li></ul><h3>Benefits of an Installment Agreement</h3><p>Establishing an installment agreement with the IRS offers several advantages. First, it helps avoid enforced collection actions such as IRS levies on your bank accounts.&nbsp; You can also potentially negotiate an installment agreement with no tax lien being filed if the balance is under $50,000 and you agree to make direct debit payments.&nbsp; Having a structured payment plan can reduce stress by allowing you to manage payments in a more predictable manner, and it demonstrates your commitment to settling your tax debt.</p><figure id="figure-tt1qms1j6gm8xixtmk" class=""><img id="tt1qms1j6gm8xixtmk" src="https://cdn.durable.co/getty/1zq5VusKG6os9CzP9tze8embwI4gtfXkjimcW7L1DhRIC4CJRWxJFDoHo1ix3Whx.jpeg" alt="financial planning" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/1zq5VusKG6os9CzP9tze8embwI4gtfXkjimcW7L1DhRIC4CJRWxJFDoHo1ix3Whx.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Potential Drawbacks and Considerations</h3><p>While installment agreements offer flexibility, there are some drawbacks to consider. Interest and penalties continue to accrue on your unpaid balance until it's fully paid off, and if you miss a payment, the agreement can default, leading to possible collection actions. Therefore, it's essential to budget carefully and ensure timely payments.</p><h3>Seek Help from a Tax Attorney</h3><p>If you're uncertain about how to proceed or if your situation is more complex, contact an experienced tax attorney.&nbsp; I have helped taxpayers set up installment agreements with the IRS for more than 25 years.&nbsp; I will&nbsp; ease your burden and negotiate with the IRS on your behalf.&nbsp;&nbsp;</p><p>Setting up an IRS installment agreement can be a viable solution for managing your tax debt over time.&nbsp; By understanding the process and choosing the right plan, taxpayers can take control of their financial obligations and work towards a debt-free future.</p>

Setting Up an IRS Installment Agreement

<h3>Understanding IRS Disputes</h3><p>Dealing with the IRS can be intimidating.&nbsp; Taxpayers often find themselves needing to resolve disagreements with the IRS over tax audits, assessments, penalties, fast-growing tax debt, liens, levies, and other disputes.&nbsp; Sometimes taxpayers do not want to open IRS mail because they dread the news.&nbsp; The tendency is to let IRS mail pile up, but that is the worst thing you can do.&nbsp; Understanding IRS procedure and knowing how how to work proactively with the IRS is crucial for a favorable outcome.</p><figure id="figure-4chthn56bm8d9oxwh" class=""><img id="4chthn56bm8d9oxwh" src="https://cdn.durable.co/getty/2bTYC7TdXwJDX7qwkCEVQAY8ul4B3mUDTkgK4VOrJsy7H17CKpz1ouoPVXIbYjkg.jpeg" alt="irs building" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/2bTYC7TdXwJDX7qwkCEVQAY8ul4B3mUDTkgK4VOrJsy7H17CKpz1ouoPVXIbYjkg.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Common Types of IRS Disputes</h3><p>IRS disputes can arise from many issues, including:</p><ul><li>Unfiled returns</li><li>Notices of Deficiency</li><li>Incorrect tax assessments</li><li>IRS Audits</li><li>Inability to Pay</li><li>IRS Tax Levies</li><li>IRS Tax Liens</li><li>Penalties for late filings or payments, trust fund, or other penalties</li><li>Innocent Spouse Claims</li><li>Refund Claims, and more.</li></ul><p>These disputes require careful handling to ensure that your interests are protected.&nbsp; Taxpayers have options to address and resolve these issues.</p><figure id="figure-y6bhj7suy9m8d9p3ow" class=""><img id="y6bhj7suy9m8d9p3ow" src="https://cdn.durable.co/getty/32yJH8TFWYuAszUefdNBuSHk6m0ZuBekmfSf8fIrzq9P9ygN849M3ddBQxAi1YmY.jpeg" alt="tax documents" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/32yJH8TFWYuAszUefdNBuSHk6m0ZuBekmfSf8fIrzq9P9ygN849M3ddBQxAi1YmY.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Current Compliance and First Steps</h3><p>The first step is to thoroughly review IRS correspondence and look for response deadlines.&nbsp; If you are up against a deadline, do not hesitate to contact a tax lawyer to help you with a timely response.&nbsp; You do not want to miss a response deadline because you can potentially lose valuable appeal rights that can protect you.&nbsp; The IRS has procedures in place to protect taxpayers' rights, but if you do not follow the procedures, you can lose those rights and make yourself more vulnerable to IRS&nbsp; enforced collection by levy or seizure. </p><p>Secondly, it is crucial to stay CURRENT with tax filings and payments from this point forward.&nbsp; No matter how much you owe for old years or the nature of the IRS dispute, you cannot work with the IRS without getting into compliance for the current year and going forward.&nbsp; That includes making timely 1040 estimated tax payments, federal tax deposits (941, 940) if applicable, and timely filing income and other tax returns, as appropriate for your situation.&nbsp; After checking for response deadlines, <strong>CURRENT COMPLIANCE </strong>is the single most important step you can take to start working your way out of a tax problem.&nbsp; If you stay in current compliance, you will be in a position to work with the IRS to resolve your tax disputes.&nbsp; &nbsp; &nbsp;</p><h3>Options for Resolving Disputes</h3><p>Once you understand the nature of your IRS dispute, you have many potential avenues to resolve it so long as you are in current compliance, including but not limited to:</p><ol><li><strong>Negotiation:</strong> Negotiation with the IRS may lead to a solution without escalating the issue further.&nbsp;&nbsp;</li><li>&nbsp;<strong>Appeal:</strong> If you disagree with an IRS notice, proposal, or determination, you may be entitled to file an appeal, which will be reviewed by an independent appeals office within the IRS, or if you receive a notice of deficiency, you have the right to petition the U.S. Tax Court for help.&nbsp;&nbsp;</li><li>&nbsp;<strong>U.S. Tax Court</strong>:&nbsp; In many cases, if you do not get results in Appeals, you can take your case to Tax Court to get it resolved.&nbsp;&nbsp;</li><li>&nbsp;<strong>IRS Taxpayer Advocate</strong>. &nbsp;The Advocate is also a great way to get help when nothing else has worked.</li></ol><figure id="figure-u0myfc353im8d9p86c" class=""><img id="u0myfc353im8d9p86c" src="https://cdn.durable.co/getty/27l7IHftzkMj0QA9lFm0Fk5ipeZ9aKEzoKb73dCVLo3LMVNfAROYdXiJKygeV1rJ.jpeg" alt="tax negotiation" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/27l7IHftzkMj0QA9lFm0Fk5ipeZ9aKEzoKb73dCVLo3LMVNfAROYdXiJKygeV1rJ.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Proactive Communication is Key</h3><p>Regardless of the IRS dispute or how long it has been going on, it is never too late to consult with a tax lawyer about your options.&nbsp; I have represented business and individual taxpayers before the IRS for more than 25 years.&nbsp; Let's talk about your case and how I can help.&nbsp; Call me for a free consultation at 210-447-7572, or send me an email at <a href="mailto:melissa@ellistaxlaw.com">melissa@ellistaxlaw.com</a>.&nbsp; IRS problems never get better when ignored.&nbsp;&nbsp;</p><p><br></p>

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Navigating IRS Disputes: Essential Steps