Ignoring tax notices almost cost this executive $107,138.
Angie M Grainger
Money Found
When we first started helping a business owner get organized, we discovered a ‘last chance’ notice from the IRS with a bill of $107,138.
We looked into the issue and realized that the IRS was auditing him on a few specific items relating to payroll.
This client was so overwhelmed by the expansion of his business, that he just couldn’t handle notices from the IRS.
So he ignored the requests for information on the audit… for nearly two years!
By not responding to the notices, the IRS denied a deduction for the items under audit and assessed him the additional taxes, penalties and interest.
Once that final assessment has been made and the due date passes, the only way to challenge it at that point is to go to tax court.
The final due date was two days after we discovered this notice.
So, we immediately took over the situation and contacted the IRS.
It was a challenge, but we found the information in time to show the IRS that their assessment was incorrect, and got the full amount reversed before the due date lapsed.
It was a great day of celebration when the client opened the next notice from the IRS that said, “total due $0”.
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