Every year, the Internal Revenue Service (IRS) audits thousands of American taxpayers and businesses. When that happens, it becomes stressful. If the government determines that money is owed, it will attempt to collect by adding penalties, filing tax liens against property and taking a percentage of wages. Most taxpayers are unprepared to meet such demands, even when if they feel that their mistakes are honest ones.

Delinquent taxpayers who try to work with the IRS directly, oftentimes dig a deeper hole for themselves – despite their best intentions not to. Although the IRS agent auditing them may be courteous and even helpful, the auditor’s job is to make sure the government gets paid at the taxpayer’s expense. If the auditor suspects that the taxpayer is trying to hide important information or is not being truthful, the case could be assigned to the IRS’ Criminal Investigation Division. In fact, over half of all criminal investigations are initiated by an IRS agent conducting a “routine audit.”

The IRS first sends a written notice to a delinquent taxpayer, who then must respond or prepare for further IRS action. If the taxpayer does not respond to a written notice by a given date, the IRS moves forward, usually by coming up with its own dollar amount.

Should a delinquent taxpayer immediately hire an irs tax attorney once he/she receives an IRS notice?  Not always. It depends on IRS demands. For instance, if an IRS auditor asks a few simple questions or requires the taxpayer to provide proof on small expense claims, the need for an attorney may not be necessary. If the delinquent taxpayer owes less than $2,500 and can afford to pay the sum in full or over a small period of time, the taxpayer might also be able to negotiate a satisfactory settlement.

However, if a taxpayer owns a small company with payroll tax issues or if the taxpayer has not filed tax returns in years and owes the government a considerable amount of money, the taxpayer should definitely hire a tax lawyer to protect his or her best interests. The IRS can be a very difficult agency to satisfy. You will need someone with tax experience to negotiate for you.


We at Anderson Bradshaw Tax Consultants work with the IRS every day to help our clients get out and stay out of financial trouble. Our attorneys and tax consultants understand tax laws and will fight for you so that you can rest easier and live a more peaceful life.  For a Free 30 minutes consultation, please call us at 877.550.3911.