IRS Tax Problems

Tax Problems can cause a great deal of stress and frustration. If you’re receiving notices from the IRS or the State informing you of an outstanding balance—or worse, an imminent seizure of your property and assets, it is time to get knowledgeable, professional help. We can help you get relief from your IRS Tax Problems.

Delinquent and unpaid back taxes are serious issues that don’t disappear just because you ignore them. In fact, the longer you wait to take action on your notices, the more severe your penalties can become. Once the due date mentioned in your notices has passed your balance can accrue interest, thousands of dollars in late filing penalties, and even jail time.

With an experienced CPA like Franskoviak Tax Solutions, you can avoid the consequences of tax problems while possibly lowering your tax debt. Contact us today to schedule your free consultation and learn more about the tax relief solutions available.

IRS Tax Problems

The Internal Revenue Service (IRS) is the revenue service of the United States federal government, responsible for collecting taxes and enforcing tax laws. While most taxpayers comply with their tax obligations, there are times when individuals or businesses may face issues with the IRS.

Some common types of IRS tax problems include:

  • Failure to file taxes: This occurs when an individual or business fails to file their tax return by the deadline.
  • Failure to pay taxes: This happens when a taxpayer does not pay all of the taxes they owe by the due date.
  • Tax audits: An audit is an examination of a taxpayer’s financial records and tax returns to ensure accuracy and compliance with tax laws.
  • Tax liens: A lien is a legal claim against a taxpayer’s property for the amount of unpaid taxes.
  • Tax levies: A levy is a legal seizure of a taxpayer’s property to satisfy an outstanding tax debt.


Causes of IRS Tax Problems

There are various reasons why individuals or businesses may encounter issues with the IRS. Some common causes include:

  • Incorrect filing: Making mistakes on tax returns, such as claiming incorrect deductions or exemptions, can lead to IRS tax problems.
  • Failure to keep proper records: The IRS may request documentation to support income and expenses reported on a tax return. If these records are not maintained, it can result in discrepancies and potential issues with the IRS.
  • Underreporting income: Not reporting all sources of income on a tax return is a common reason for IRS tax problems.
  • Non-payment of estimated taxes: Taxpayers who are self-employed or have other income that is not subject to withholding may need to make estimated tax payments throughout the year. Failure to do so can result in penalties and interest charges.


Resolving IRS Tax Problems

If you are facing an issue with the IRS, it’s important to address it as soon as possible. Here are some steps you can take to resolve your IRS tax problems:

  1. Communicate with the IRS: Contact the IRS and explain your situation. They may be able to work out a payment plan or offer other solutions.
  2. Seek professional help: Enlisting the assistance of a tax professional, such as an accountant or tax attorney, can help you navigate the complexities of IRS tax problems.
  3. Request an appeal: If you disagree with the outcome of an audit or other decision made by the IRS, you have the right to request an appeal.
  4. Offer in compromise: In certain circumstances, the IRS may be willing to settle a tax debt for less than what is owed through an offer in compromise.
  5. Request penalty relief: The IRS may waive penalties for taxpayers who can demonstrate reasonable cause for not complying with tax laws.

It’s important to address any IRS tax problems in a timely and proactive manner to avoid further complications and potential legal consequences. By understanding the common types and causes of IRS tax problems, you can take steps to prevent them from occurring in the future. Additionally, seeking professional help and communicating with the IRS can greatly assist in resolving any existing issues.

Don’t Let Tax Problems Ruin Your Optimism for the Future

Tax problems – like penalties, audits, and IRS notices – can be stressful. They’re even more stressful if you ignore them. Take these steps to ensure you leave your old tax problems behind you.


Tax Problems are More Common Than You Think

If you have a tax problem, don’t worry. Every year, millions of taxpayers have an issue with the IRS. The following are a few of the most prevalent problems that taxpayers face:

  • Underreporting Notices (Notice: CP2000): The IRS sends these error-notification letters to 4 million taxpayers every year. When income reported on tax returns does not correspond with data received from employers and other payers, the IRS’s systems automatically send them. The discrepancy causes a notice demanding an explanation and proposing additional payments.
  • Tax Identity Theft: Millions of taxpayers have their personal information stolen every year. These taxpayers are at an increased risk that fraudsters will file a false return under their name for the following tax year, not to mention all of the other challenges that come along with identity theft.
  • Penalties: The IRS enacts more than 40 million penalties each year.
  • Audits: There are around 1.6 million IRS audits every year, and many last for more than a year.
  • IRS Bills: More than 17 million people are currently behind on their IRS payments and cannot pay.
  • Unfiled Returns: According to the IRS, more than 7.5 million taxpayers do not file a required return each year.

Many IRS difficulties can take months to resolve. However, you should not let this deter you from taking any measures to put your tax problems behind you.

Here’s what you can do:

1. Fully comprehend what occurred and why it occurred. When you look into your IRS tax problem, you’ll need to figure out what caused it in the first place. For example, an apparent underreporting problem may be due to identity theft rather than poor bookkeeping.

2. Choose the smartest option for addressing the problem. It might take some effort to examine all of your possible solutions and pick the best one. If you have an IRS penalty, for example, you’d need to consider which of the five strategies to remove penalties applies to your case.

3. Get help from a tax professional. It’s often in your best interest to get help from an expert, especially if you’re facing an audit or you have a complex tax return. Hiring a tax professional, like a tax attorney or enrolled agent when you have a tax problem can give you peace of mind that someone is on your side – especially if you owe a large amount of money or face an audit.

4. Don’t wait any longer. Start now. Make sure to submit a comprehensive IRS request or response after you’ve decided on a solution. The IRS will be able to make an informed decision based on all of your information if you do this. It will also prevent misunderstandings that might lead to further discussions with the IRS. Meeting IRS deadlines is critical to avoid a premature IRS decision on your situation. Don’t let the fact that you missed the deadline deter you from attempting to solve your tax problem.


The moral of the story: If you’re getting IRS notices or have any lingering tax issues, take steps to get tax help now and avoid any possible consequences, including the IRS taking some or all of your refund.




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Frequently Asked Questions
By Clients With Tax Problems (FAQ)

How can I fix my tax problems?

First of all, don’t ignore your tax problems. Ignoring an IRS tax problem is a big mistake that many people make.  If tax debt goes ignored, interest and penalties will continue to accumulate and create even bigger tax problems. You could receive a bank levy, wage garnishment or the IRS can seize your assets. The IRS has the legal right to take any of these actions if they cannot collect what is owed.

Franskoviak Tax Solutions can help you resolve your tax problems. We’ve been representing our clients with tax issues for over 30 years. We have a 98% success rate of client’s paying pennies on the dollar (see our case studies) in regard to what is owed in defaulted taxes. We offer a free consultation in which we review your situation and explain your options. Put your mind at ease and call us today.

If I don’t pay my back taxes will that create more tax problems for me?

Yes, too often, people ignore their tax problems because the situation is so overwhelming and finding the answers to questions from the IRS isn’t very easy. In many cases, the largest portion of a delinquent tax bill is the penalties and interest that accrue. Penalties and interest add up quickly and can make it impossible to pay the full debt, creating a vicious cycle and more serious tax problems.

Our tax experts at Franskoviak Tax Solutions have over 20 years of experience representing clients and negotiating with the IRS to secure abatement of penalties and interest, reducing any further charges that would otherwise occur.

What if I need legal representation to help with my tax problem but can’t afford it?
In most cases the reduction that we negotiate with the IRS is substantially less than what is owed (see some of our case studies), so taxpayers are able to afford our representation and are happy to pay such a decrease in taxes owed.

Also, the process generally takes some time. Usually months and often up to a year. During this time the taxpayer is not continually accruing fees and penalties, so it gives the taxpayer more time to save and get back on top of the situation.

In addition, If you are a low income taxpayer who cannot afford professional tax assistance or if you speak English as a second language (ESL) and need help understanding your taxpayer rights and responsibilities, you may qualify for help from an LITC that provides assistance for free or for a nominal charge. The LITCs are generally operated by nonprofit organizations or academic institutions.

If I have tax problems and owe the IRS money, what are some of my options for resolution?


  1. Installment Agreement: A monthly payment plan, that fits your budget, can be established to pay off the IRS.


  1. Offer in Compromise: This is one of the most common solutions for paying off debt and tax problems. The Offer in Compromise program is when you settle your tax debt for less than what you owe. It generally requires making a lump sum payment or sometimes includes a short-term payment plan to pay off the IRS at a much-reduced rate.


  1. Not Currently Collectible: This is a program where the IRS agrees to postpone the collection process for a year or so. This happens in cases when a taxpayer has no ability to pay his or her tax debts. This option is useful because it gives you time to file for a collection appeal to stop an IRS levy, lien or seizure.


  1. Release Wage Garnishments: When you owe the IRS money the IRS can levy your wages, salary, or federal payments until the levy is released, your tax debt has been fully paid off, or the time expires for legally collecting the tax. The “Release Wage Garnishment” gives you the opportunity to bargain for a release or modification to the garnishment if you don’t have enough money to survive with the levy.


  1. Stop the IRS from Levying Your Bank Account: The IRS can issue a bank levy to take your cash from your bank accounts to collect back taxes. When the IRS levies a bank account, the bank is required to remove whatever amount is available in your account that day (up to the amount of the IRS levy) and send it to the IRS in 21 days unless notified otherwise by the IRS.


  1. Innocent Spouse Relief: If you happen to inherit your spouse’s IRS tax problems, you can dispute it. If you can prove that your circumstances fit within the IRS guidelines for innocent spouse tax relief, you can defend yourself against any liabilities of your spouse or ex-spouse.


  1. File Bankruptcy: Income tax debts may be eligible for dismissal under Chapter 7 or Chapter 13 of the Bankruptcy Code. Filing for bankruptcy is one of five ways to resolve tax problems. Chapter 7 provides for full discharge of allowable debts. Chapter 13 provides a payment plan to repay some debts, with the remainder of debts discharged.



These are the most common solutions for dealing with IRS Tax Problems. We offer a free consultation in which we help you identify which option is the best for you.

Who qualifies for tax forgiveness?

In order to qualify for true tax forgiveness, you must have a certain amount of credits against your back taxes. These credits can reduce some or all of your tax liability. To qualify, you must make certain the IRS takes into account your taxable and non-taxable income, as well as your family size and specific financial situation. You also may need to prove that you are unable to pay the taxes you owe, and that paying them would create a financial hardship for you or your family. If you can prove all of these things to the IRS, you may be able to qualify for true tax forgiveness.

How Far Can the IRS go back on unfiled taxes?

The answer is that there is no statute of limitations on a late-filed return. The IRS can go back to any unfiled year and assess a tax deficiency, along with penalties. However, in practice, the IRS rarely goes past six years for non-filing enforcement.

So, if you’re thinking about skipping out on filing your taxes for a few years, you may want to think again. The IRS could come after you for many years of unpaid taxes, plus interest and penalties. And, if they do, you’ll be facing a very hefty bill. So it’s always better to file your taxes on time, even if you can’t pay them right away. You can work out a payment plan with the IRS if you need to. But don’t risk getting hit with a big bill down the road by skipping out on filing your taxes.

How do lenders know you owe taxes?

Most lenders will request that you provide one to two years of tax returns when you apply for a home loan. Lenders also check credit information, which can show if the borrower owes federal tax debt. In addition, lenders may also run a background check, which can reveal any liens or judgments against the borrower.

If the lender finds that the borrower owes taxes, they may require that the debt be paid off before approving the loan. In some cases, the lender may even refuse to provide financing. As a result, it’s important to be honest with your lender about any outstanding tax obligations you may have. Otherwise, you could end up jeopardizing your chances of getting approved for the loan.

What happens if you don't file taxes every year?

Filing your taxes can seem like a hassle, but it’s important to do every year. Not only does it ensure that you’re paying your fair share, but it also prevents you from incurring penalties. The penalty for failing to file your taxes on time is 5% of your unpaid tax liability for each month that your return is late, up to 25% of your total unpaid taxes. That means if you owe $1,000 in taxes and don’t file for two months, you’ll owe an additional $100 in penalties. If you’re due a refund, however, there’s no penalty for failure to file. So if you’re dreading tax season, just remember that it’s better to file late than not at all.

How can I legally not pay taxes?

Though it may seem like an impossible feat, there are actually several legal ways to avoid paying US income tax. One option is to move outside of the United States. If you can prove that you live in another country and that your income is derived from sources outside of the US, you will not be subject to US taxation. Another option is to establish a residence somewhere else. This could mean buying a property in another country or simply spending a certain number of days each year in a foreign country. If you meet the requirements, you can claim foreign residency and avoid paying US taxes.

A third option is to move to one of the US territories. These include Puerto Rico, the Virgin Islands, and American Samoa. While residents of these territories are still considered US citizens, they are not subject to US income tax. Finally, you can always renounce your citizenship. However, this is a radical step and should not be undertaken lightly. If you are serious about avoiding US taxes, one of these options may be right for you.


What Our Clients Say’s About us

Steven D. – Attorney – Offer In Compromise

Owed IRS: $937,769, Settled $33,000 a settlement rate of 3.5%!

“Franskoviak Tax Solutions provides the best in class customer service.  The team is responsive, professional, and always available to answer questions. I would never go anywhere else for my tax issues.”

Anonymous – Grosse Pointe

Owed $638,995, Settled $161,815

“Excellent service…I would recommend the services at Franskoviak to any of my family, friends, and colleagues… Having this issue resolved means so much to me as it has removed a huge amount of stress from my life… [They have] great communication skills and all of my questions were answered promptly whether I needed an email or phone call response, they were always answered… The communication made the process move smoothly.”

Dawn. D – Tax Audit Defense and Penalty Abatement Services Project Manager Waterford, MI

“I am super thankful to have a firm that I can trust, thank you!”

Anonymous – Insurance Agency Coordinator, Michigan

Owed $91,867, Settled $9,985

“I contacted Franskoviak Tax Solutions regarding outstanding taxes (IRS & State)… I was able to get an Offer in Compromise from both the IRS & State… Mike Franskoviak and John Foran are accounting professionals with the knowledge and experience necessary to complete such difficult tasks… John Foran is great to work with. He does not forget or miss anything when it comes to dealing with the IRS or the State of Michigan. He follows up on every detail… They go above and beyond to get the job done…I wouldn’t trust anyone else with these matters.”



Robert R. – IRS Offer In Compromise General Laborer Flint, MI

Owed $134,003, Settled $12,168, a savings of 90%

“Franskoviak Tax Solutions is AWESOME! Especially if you have tax problems. They have a lot of professionalism and it feels as though the staff at Franskoviak Tax Solutions really does care about us.”

Restaurant – IRS Offer In Compromise Payroll Taxes Northern MI

Owed $228,990.80, Settled $26,000, a savings of 89%

“It was successful; Franskoviak Tax Solutions got everything done. It was a huge weight lifted off my shoulders. It was handled very timely, everything was submitted right away. They were on top of it.”

Bryan M. – State of Michigan Offer in Compromise Capac, MI

Owed $181,311, Settled $28,878, a savings of 84%

“Franskoviak Tax Solutions did a good job handling my case. Everything was always clear, and they helped me out a lot. They were able to take care of the problem, help me not owe so much on my taxes, and take away the burden.”

Jason K. – IRS Offer In Compromise Restaurant Owner Northern MI

Owed $124,684.10, Settled $2,000, a savings of 98%

“It was successful; Franskoviak Tax Solutions got everything done. It was a huge weight lifted off my shoulders. It was handled very timely, everything was submitted right away. They were on top of it.”

Drew – IRS Offer in Compromise Hudsonville, MI

Owed $48,484, Settled $2,795, a savings of 94%!

“Franskoviak Tax Solutions saved my butt and helped get the monkey off my back. They did a great job saving me money and keeping me out of jail.”

Realtor – State of Michigan Offer in Compromise Royal Oak

Owed $6,047, Settled $285, a savings of 95%

“I cannot thank both you and John enough for all of your hard work on my behalf! It is truly a game changer and hopefully the magic touch to get me back on my feet after my horrible divorce and custody battle.”

Randy S. – IRS Offer in Compromise Troy, MI

Owed, $50,918.70, Settled, $5,802.68, A savings of 88%!

“Franskoviak Tax Solutions helped me get past a stressful time in my life. They did their job and I’m very happy with the result. I am happy I get to move on.”

Scott B. Realtor Wayne County, MI

Owed $165,070 – Installment Agreement with IRS & State of Michigan

“Franskoviak Tax Solutions has phenomenal professionalism!  From the first sit down with Mike, he put me at ease.  He minimized my tax liabilities and gave me peace of mind.  Everyone in the office is amazing, and they make tax preparation absolutely easy.”

Gerych’s Green House Inc. – IRS Offer in Compromise Fenton, MI

Owed $885,357.60, Settled $84,590.10, a savings of 90%!

“I am incredibly happy with the team over at Franskoviak Tax Solutions. They helped me settle my case with the IRS. They are responsive and do a good work. They are always transparent, and I appreciate the relationship that we have/continue to build.”

Gloria M. – State of Michigan Offer in Compromise Redford, MI

Owed $43,337, Settled $500, saving her $42,837 / 99%

“Franskoviak Tax Solutions were very professional. Whenever I called, I always got an answer… they were always there for me. It wasn’t an easy road but when I won my appeal… it was a very happy day! I will be sticking with Franskoviak Tax Solutions for all my Tax needs.”


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