Understanding the IRS and Tax Filing Claims

Paying your taxes is serious—and the government wants you to know it. For the first time in years, Minnesota and Wisconsin now have a permanent director in the U.S. Attorney’s office dedicated to fighting tax crimes. What does that mean for individuals and business?

 You could get a letter stating you are under investigation if you have failed to pay your taxes.

 Today the IRS uses technology and data analytics to find legitimate businesses that haven’t filed their taxes. Recently the IRS hired more than 250 additional agents to help and assist with this endeavor.

 Below are a number of questions we are frequently asked about the IRS and tax filing claims:

 How successful is the IRS with pursuing these claims?

 The IRS claims a 94% success rate. The trouble with these issues is the IRS is the rule maker and the rule enforcer, so it’s always best to address any issues before the IRS chooses to pursue you.

 How does the process usually start?

 The IRS starts their process by sending you a letter. The IRS is in the information business and if you don’t have all your information together and submitted to them, they will ask you for more of that information via a letter. Don’t wait—hire a Froehling Anderson professional to help you complete and collect the IRS request. Early contact is key in managing the whole process.

 What should I do if I already received a letter?

 While the 94% success rate can cause anxiety, it is best to stay calm and contact a Froehling Anderson professional, so you can respond. The IRS wants to resolve your case as much as you do, so a response from a professional can help you move in the right direction and minimize penalties and fees. Remember, people get in the most trouble when they ignore the initial IRS letter.

 What if haven’t filed taxes and I received a letter? 

 Call or email Froehling Anderson and we can help you navigate this issue—we promise you aren’t the only one.

 How can Froehling Anderson help?

 Not filing your tax returns doesn’t have to be a prison sentence, as long as you act quickly. We are experienced in compiling financial records for tax filings for past non-filers to minimize tax obligations like interest and penalties.

 Success Stories: 

  1. Client owed the IRS $300,000 in penalties and interest from non-filing, Froehling Anderson negotiated it down to $7,700.

  1. Client had their house seized after non-filing by the IRS but now our client has had the house returned and after preparing the old tax returns will receive a tax refund.

We are here to help with any and all IRS tax claims. Call or email Alan Delage at:

ContactUs@fa-cpa.com or 952-979-3100

Information in this article was collected from the October edition of the Minneapolis/St. Paul Business Journal.