How Can an Idaho Falls CPA Help if You Owe Money to the IRS?
When a letter from the IRS arrives that states money is owed to them for a mistake or omission in the past, it’s easy to panic, and many people will simply hide the letter and ignore it, hoping it’ll go away. The IRS isn’t going to disappear, though, so it is important to take action fast. The first thing that should be done after getting one of these letters is to schedule an appointment with an Idaho Falls cpa. A certified public accountant (CPA) can help with all of the following.
Take Note of Deadlines and Fees
The first thing that should be done is to figure out what has happened, what the deadlines are to respond to the letter, and what fees are owed. The CPA can go through all financial documents and tax records provided by the client to determine how much money is owed, whether they have started accruing interest, and whether there are any penalties. Once they have all of the necessary information, the CPA can work with the client on the next steps.
Start With Negotiation With the IRS
Often, certified public accountants will start by trying to negotiate with the IRS for their client. They’ll contact the IRS directly, instead of the client having to do this on their own, which can help relieve a lot of stress about the situation. There are a few different ways the amount owed can be reduced or eliminated, so the CPA will look into each of these to see if they’re applicable and, if so, contact the IRS to ask about having the debt reduced or forgiven.
Request Penalties be Removed
If penalties are already in place, it doesn’t mean they’re permanent. In some cases, an Idaho Falls cpa can have the IRS remove the penalties or reduce them to a more affordable amount. If there is interest owed on top of the original amount, the CPA may be able to have that waived, too. Though this won’t eliminate the debt completely, it can help reduce the amount owed.
Look into an Installment or Settlement
If money is still owed, the accounting firm will ask the IRS to accept an installment payment or to consider an offer in compromise. An offer in compromise reduces the debt to a smaller amount as long as it’s paid off in full by a certain date.
If you’ve received a demand letter from the IRS, a letter about garnishments or liens, or any other issues, it’s important to get help fast, before the issue gets worse. Take the time to schedule an appointment with a certified public accountant today to learn more about what you can do, what your options are, and how they can help you get ahead of the situation.