There is a long list of all the ways you can contest the IRS. The key is to take action and not allow the tax problem to fester. And even if you think it’s “too late” it’s usually not too late. Keep these strategies in mind if you are faced with an IRS demand for payment.
- You may be able to amend the return.
- You may be able to file a petition directly with the U.S. Tax Court within 90 days of a deficiency notice, and the tax liability need not be paid until the case is resolved.
- You may be able to challenge penalties based on good faith and reasonable cause. See IRS Penalty Handbook.
- You may be able to file an offer in compromise based on “doubt as to liability.”
- You may be able to file a “straight discharge” in bankruptcy and simply wipe out the tax, skipping over any negotiation with the IRS.
- You may be able to obtain a Taxpayer Assistance Order.
- You may be able to obtain innocent spouse relief.
- You have appeal rights in collection due process, equivalent hearings and U.S. Tax Court.
This is just a partial list. The point is, you have options! We encourage you to get the free book, The Truth about Tax Settlement and Alternative Tax Solutions.