Frequently Asked Questions

Frequently Asked Questions (FAQs)

What is Tax Resolution?

Tax resolution is the process of helping taxpayers resolve a tax problem. It could include addressing back taxes owed, responding to IRS notices, discharging liens, releasing levies like wage garnishments, or filing prior year tax returns. The goal is to find a practical path forward based on your tax situation and ability to pay.

What is IRS representation?

IRS representation is when a qualified tax professional — such as an Enrolled Agent, CPA, or attorney — acts on your behalf in dealings with the IRS. Your representative should stand in for you during audits, collections proceedings, appeals processes, or other disputes, so you don't have to face the agency alone. At Coda Tax Resolution we handle 100% of communications with the IRS, negotiate on your behalf, and work toward previously agreed on resolutions. Speak with one of our experienced professional advocates who understands both the tax code and IRS procedure to reduce your stress and minimize the risk of costly mistakes.

What is the Taxpayer Bill of Rights?

Every taxpayer is afforded a set of fundamental guaranteed rights in their dealings with the IRS. They are:

  1. The Right to Be Informed: You have the right to know what you need to do to comply with the tax laws. You are entitled to a clear explanation of tax laws and IRS procedures. You have the right to be informed of IRS decisions about your tax account and receive a clear explanation of the outcome.
  2. The Right to Quality Service: You have the right to receive prompt, courteous, and professional assistance in your dealings with the IRS. You have the right to be spoken to in a clear and understandable way, and speak to a supervisor about inadequate service.
  3. The Right to Pay No More than the Correct Amount of Tax: You have the right to pay only the amount of tax legally due, including penalties and interest, and to have the IRS apply all tax payments properly.
  4. The Right to Challenge the IRS's position and Be Heard: You have the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions. You have the right to expect the IRS to consider timely objections with documentation fairly and promptly. You also have the right to receive a response if the IRS does not agree with your position.
  5. The Right to Appeal an IRS Decision in an Independent Forum: You are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties. You have the right to receive a written response regarding the Office of Appeals' decision. You also generally have the right to take your case to tax court.
  6. The Right to Finality: You have the right to know the minimum amount of time you have to challenge the IRS's position, as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. You also have the right to know when the IRS has completed an audit.
  7. The Right to Privacy: You have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary.
  8. The Right to Confidentiality: You have the right to expect that any information provided to the IRS will not be disclosed unless authorized by you or the law. You have the right to expect appropriate action taken against employees, return preparers, and others, who wrongfully use or disclose your information.
  9. The Right to Retain Representation: You have the right to retain an authorized representative of your choice to represent you in your dealings with the IRS.
  10. The Right to a Fair and Just Tax System: You have the right to expect the tax system to consider facts and circumstances that may affect your underlying liabilities, ability to pay, and/or ability to provide information timely. You have the right to receive assistance from the Taxpayer Advocate Service (TAS) if you are experiencing financial difficulty, or if the IRS has not resolved your tax issues properly and timely through normal channels.
Can I settle my tax debt for less than I owe?

In some cases, yes. Options such as an Offer-in-Compromise may allow qualifying taxpayers to settle IRS tax debt for less than the full balance if they cannot pay in full, or doing so would create financial hardship.

What if I cannot afford to pay the IRS right now?

You may have options such as a monthly payment plan or a temporary hardship status. The right solution depends on your income, expenses, assets, tax balance, and filing history.

Will the IRS stop collections once I get help?

Our tax professionals will respond quickly to IRS notices and negotiate with the IRS on your behalf to work toward stopping or preventing certain collection actions. The exact outcome depends on your case and the resolution options available to you.

Do I need to file missing tax returns before resolving my tax debt?

Usually, yes. The IRS generally requires taxpayers to be current with required filings before approving many tax resolution options, including certain payment plans or settlement programs.

How do I know which tax relief option is right for me?

Part of our process is investigation and analysis of your entire tax situation. During that stage of the process, we will discuss every option available to you, provide a list of recommended actions, and create a plan to move forward. The best option for you will depend on factors like how much you owe, whether your returns are filed, your income, your expenses, your assets, and any current IRS collection activity.

Can the IRS take my refund?

In many cases, the IRS can apply an overpayment in one tax year (your refund) to other outstanding tax liabilities. Your IRS refund can also be offset to State tax obligations, or other federal or state agency debt obligations. Similarly, your State tax refund can be offset and applied to your IRS debt.

Do I have to agree with the IRS?

No. Taxpayers have the right to challenge IRS positions, provide documentation, and appeal many IRS decisions. Our team of experts can help you navigate this process and build the best case for you.

What should I do if I received a notice?

The worst thing you can do is nothing. If you ignore an IRS notice, the IRS takes your silence as agreement of the IRS’s position by default. Contact our team to help you review the notice, explain what it means, and help you decide what to do next.