3 Steps to IRS Payroll Tax ResolutionPrior to a Client engaging M&M, we conduct an initial interview to get a feel for their specific situation - amount owed, local IRS Revenue Officer assigned?, bank levies in place?, etc. We determine the severity of the case. We may also conduct a free investigation to dive in a little further. Once a client signs a contract with us, an M&M Tax Team is assigned to the case and we run with it.
1) IRS Contact and Case ReviewWe submit M&M's Power of Attorney (POA) to the IRS. Having M&M's POA on file allows us to take over communication with the IRS. You talk to us. We talk to the IRS. Your Revenue Officer is now required to call your M&M representative instead of you. This allows us to request and receive information from the IRS, receive copies of IRS notices/letters and negotiate on our client's behalf. Each client POA lists 2 to 4 of M&M's licensed Enrolled Agents to ensure nothing is missed in case an M&M employee is out of the office for any reason.
In this first phase of the resolution process, M&M is able to:
- Determine Compliance issues that need to be addressed
- Establish deadlines with the IRS to initiate the protection process
- Determine which stage of the IRS collection process our client is in and tackle case specific issues such as:
- Trust Fund Recovery Penalty (TFRP) Protests,
- Form 4180 Interviews
- Tax Lien / Factoring / Accounts Receivable Issues
- Tax Deposit Designation opportunities to reduce FTD Penalties
- And more
2) Protection from Bank Account Levies and A/R LeviesIn Phase 2 of the process, we work toward formal protection of our client in the form of "Pending" Installment Agreement status. Here we gather the information and documents from the client to prepare a formal Proposal for Resolution.
- Necessary 433 forms and backup documentation
- Written request for resolution
- Written request for Abatement of Penalties
3) Negotiation of the Tax Resolution and Penalty ReductionAfter IRS review, it's time to negotiate the formal resolution.
We go over our proposal with the Revenue Officer. Negotiations often lead to:
- Installment Agreement
- Partial Payment Installment Agreement
- Currently Not Collectible Status
- Penalty Abatement
A formal resolution cements protection from IRS' enforced collection action (levies/seizures) for the life of the agreement.
Phase 3 is also the best time to tackle the Penalty Abatement request. Penalty Reduction is addressed this late in the process because it gives our clients the best chance of success. The IRS prefers to consider Abatement after compliance is achieved and a formal resolution is in place. In fact, the IRS First-Time Abatement procedures require a resolution in order to be eligible for consideration.
M&M's Tax Resolution SystemWhile many of our competitors provide tax resolution as part of a larger suite of services, M&M Financial's core practice area is resolving and reducing Payroll and Trust Fund tax liabilities for small business owners. Since 2005 we've continued to develop M&M's Tax Resolution System. It is designed to provide consistent results for our clients. Each of our In-House, Licensed Tax Teams is headed by an Enrolled Agent and trained to resolve each client case using our proven process.
We do not prepare tax returns, provide payroll services or bookkeeping. For more than 10 years we've specialized in representing small businesses in front of the Collections division of the IRS and state taxing authorities. Most of our clients already have a bookkeeper, return preparer or CPA in place. We are not attempting to replace them. In fact, we often work directly with our client's accountant to achieve optimal results.
M&M's Tax Resolution System is structured to:
Gain Protection - Integral to keeping our clients bank accounts, A/R and assets out of IRS hands. Allows our clients to take a deep breath and get back to running their business.
Secure Resolution - A reasonable plan of repayment that cements our client's protection from the Service. Find real M&M client examples near you.
Request Reduction - Positioning the Penalty Abatement Request as the final step gives our clients the best chance at reducing their tax liabilities via penalty relief. Our Penalty Abatement track record speaks for itself.