Tax Disputes

Tax disputes involve conflicts with tax authorities about tax liability, assessments, or interpretations of tax law. This may include disputes about tax returns, assessments, deductions, or the application of tax rules to particular situations. Tax disputes can arise from audits, underreported income, or disagreements about tax treatment of specific transactions. Common situations include non-filer status, outstanding tax debt, and audit notices.

Tax disputes can be resolved through negotiation with tax authorities, mediation through programmes like the IRS Appeals mediation, formal appeals through the tax authority's appeals process, or litigation in tax court. Tax resolution options include Offer in Compromise (OIC) allowing taxpayers to resolve liability for a lesser amount, Installment Agreements providing formal paths to pay debt over time, and Currently Not Collectible (CNC) status that pauses collection activity when payment would create economic hardship.

Yes, tax assessments can be challenged through the tax authority's appeals process. Taxpayers have the right to receive notice of assessments and the right to appeal. The appeals process typically involves submitting a written protest explaining why you disagree with the assessment, providing supporting documentation, and potentially participating in a conference with an appeals officer. If the appeal is unsuccessful, taxpayers may further challenge the assessment in tax court.

When taxes remain unpaid, tax authorities may take collection actions including issuing aggressive collection notices, imposing liens on property, garnishing wages, levying bank accounts, and seizing assets. The IRS responds to unpaid balances with notices such as CP504 or LT11, which precede enforced actions. Taxpayers facing collection actions should respond promptly and explore resolution options such as installment agreements, offers in compromise, or currently not collectible status to avoid or stop collection actions.