Here is some helpful sauce from first hand experience:
-
For corporate taxes that IRS is saying you owe:
A. Make sure to use certified mail to send in all payments/filings
B. If they say you owe more, send certified letter back asking about when they received your filings, etc. Just tell them the dates of your postmarks, but do not show copies; And request 1. Maximum reduction due to hardship and 2. Payment plan of maximum length.
C. If they do not reduce amount owed or provide dates of their receipt of your filings, they will likely outsource collection to a private collection agency.
D. As soon as you get collection letter, dispute it in writing via certified letter and show copies of postmarks that you filed on time.
E. If collection agency does not go away, tell them you will settle for 10% of what is claimed; OR you want the amount reduced and a payment plan over 2-3 years.
-
For personal taxes that IRS is saying you owe:
A. Respond by deadline with certified letter asking them for clarification of the reason for taxes owed and detailed calculation of how they arrived at that number.
B. When you receive their response, break down every aspect of it, and respond with second certified letter pointing out calculation, and/or assumption errors.
C. If they insist, send third certified letter and ask for a "payment plan equivalent in length to Hedge Fund payment plans that owe business taxes to the IRS." (this happens to be 100 years).
Here is some helpful sauce from first hand experience:
-
For corporate taxes that IRS is saying you owe:
A. Make sure to use certified mail to send in all payments/filings
B. If they say you owe more, send certified letter back asking about when they received your filings, etc. Just tell them the dates of your postmarks, but do not show copies; And request 1. Maximum reduction due to hardship and 2. Payment plan of maximum length.
C. If they do not reduce amount owed or provide dates of their receipt of your filings, they will likely outsource collection to a private collection agency.
D. As soon as you get collection letter, dispute it in writing via certified letter and show copies of postmarks that you filed on time.
E. If collection agency does not go away, tell them you will settle for 10% of what is claimed; OR you want the amount reduced and a payment plan over 2-3 years.
-
For personal taxes that IRS is saying you owe:
A. Respond by deadline with certified letter asking them for clarification of the reason for taxes owed and detailed calculation of how they arrived at that number.
B. When you receive their response, break down every aspect of it, and respond with second certified letter pointing out calculation, and or assumption errors.
C. If they insist, send third certified letter and ask for a "payment plan equivalent in length to Hedge Fund payment plans that owe business taxes to the IRS." (this happens to be 100 years).