Position Your Tax Obligations with the IRS to Ensure Successful IRS Representation

Letters and indeed all correspondence to the Internal Revenue Service should help the CPA, the IRS, and the taxpayer towards successful tax resolution of disputed tax items. Below is a sample letter a taxpayer might use when they are filing several back years tax returns and paying their tax obligations in full, while requesting the IRS abate penalties and stop IRS levy efforts.

Internal Revenue Service
Smyrna, GA 39901

Dear Sir or Madam,

I am writing you in a good faith attempt to come to terms over the taxpayer's present predicament and to file all of their unfiled income taxes. Please suspend all collection efforts and the levy on the wages of the above taxpayer as I have enclosed all of the unfiled tax returns for the 2004 to 2009 tax years and have enclosed a check to pay the total tax and interest will requesting that the IRS abate the penalties. Enclosed please find a check for $5300 calculated as follows:

Tax Year Tax Per Original Return (Return Enclosed)
2004                            $ 1000
2005                               1000
2006                               1000
2007                               1000
2008                               1000
2009                               1000
Total Original Taxes      6000
Add Estimated Interest  1300
Less Prior Levy             (2000)
Total Check Enclosed   $5300

Please apply on the IRS records the above garnishments to the taxpayers original tax liabilities for the outstanding years. Then apply the check enclosed first to the original tax liability and then to the accrued interest assessed as determined above. After you have applied the monies as per the above, this would make the account reflect no original taxes nor interest due.

I am asking you to abate all of the assessed penalties as the taxpayer has faithfully responded by meeting the due date we agreed to of filing the returns by December 15, 2009. Accordingly by nature of their response and the enclosed check for the difference I believe it is a just and fair request to abate all of the previously assessed penalties.

Having a ongoing levy/wage garnishment against the taxpayers substantially impairs the taxpayers ability to address their ongoing financial obligations and indeed impair their ability to live, pay their past taxes and ongoing mortgage, medical costs etc. Accordingly please cease the wage garnishment of the taxpayer while the IRS is able to process the above check to settle their account in full, abate their tax penalties, and to process the above check and to close their file.

The taxpayers had no financial adviser in the past and they have retained me to assist them in this endeavor. At your earliest opportunity please call and confirm that the wage garnishment has been stopped.

Please do not hesitate to contact me if you have any questions.

Sincerely, John C. Dillard, CPA, PC, Partner in Charge

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html  There you will also discover a wide host of resources for American Entrepreneurs.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/  or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!