FAQ — Tax Defense Company | IRS & Tax Relief Questions Answered

Question 1

I received an IRS notice — what should I do first?

Accepted Answer

Do not ignore it. Every IRS notice has a deadline, and missing it can eliminate your right to appeal or negotiate. Read the notice carefully to identify the issue and the response deadline, then contact a tax professional immediately. We offer free consultations to help you understand exactly what the IRS is asking and what your options are.

Question 2

What happens if I ignore the IRS?

Accepted Answer

Ignoring the IRS makes things significantly worse. The IRS can file a federal tax lien against your property, levy your bank accounts, garnish your wages, and even seize assets — all without going to court. The longer you wait, the fewer options you have. Acting quickly gives you the most leverage to resolve the situation favorably.

Question 3

Do I need a tax defense attorney for IRS problems?

Accepted Answer

Not always — but it depends on the severity of your situation. For serious matters like criminal investigations, large tax debts, unfiled returns, liens, levies, or wage garnishments, professional representation is strongly recommended.  This is where Tax Defense Company can help.  We can negotiate directly with the IRS on your behalf, protect your rights, and often achieve outcomes you could not reach on your own.

Question 4

Can the IRS really take my house or car?

Accepted Answer

Yes. The IRS has broad authority to seize real property, vehicles, bank accounts, and other assets to satisfy unpaid tax debts. However, seizure is typically a last resort after multiple notices and collection attempts. If you are receiving collection notices, acting now — before a levy or seizure is issued — gives you the best chance of protecting your assets.

Question 5

What is an Offer in Compromise?

Accepted Answer

An Offer in Compromise (OIC) is an IRS program that allows qualifying taxpayers to settle their tax debt for less than the full amount owed. The IRS considers your ability to pay, income, expenses, and asset equity. Not everyone qualifies, but for those who do, it can result in significant savings. We evaluate your eligibility as part of our free consultation.

Question 6

Can I set up a payment plan with the IRS?

Accepted Answer

Yes. The IRS offers installment agreements that allow you to pay your tax debt over time. Depending on how much you owe and your financial situation, you may qualify for a short-term plan (up to 180 days) or a long-term monthly payment plan. Interest and penalties continue to accrue during the repayment period, so it is important to structure the agreement correctly.

Question 7

What is Currently Not Collectible (CNC) status?

Accepted Answer

Currently Not Collectible status is a temporary IRS designation for taxpayers who cannot afford to pay their tax debt without causing financial hardship. While in CNC status, the IRS suspends collection activity — no levies, no garnishments. It is not a permanent solution, but it can provide critical breathing room while you stabilize your finances or explore other resolution options.

Question 8

Can penalties and interest be reduced or removed?

Accepted Answer

Yes, in many cases. The IRS offers penalty abatement programs, including First-Time Penalty Abatement for taxpayers with a clean compliance history, and Reasonable Cause Abatement for those who can demonstrate circumstances beyond their control. Interest abatement is rarer but possible in certain situations. We review every case for penalty relief opportunities.

Question 9

What triggers an IRS audit?

Accepted Answer

Common audit triggers include unusually high deductions relative to income, unreported income, large cash transactions, home office deductions, and discrepancies between your return and third-party information (like W-2s or 1099s). Random selection also occurs. If you receive an audit notice, do not respond without professional guidance — what you say and provide can significantly affect the outcome.

Question 10

What is the difference between a correspondence audit and a field audit?

Accepted Answer

A correspondence audit is conducted by mail — the IRS requests documentation for specific items on your return. A field audit involves an IRS agent visiting your home or business to review records in person. Field audits are more comprehensive and higher-stakes. Both require careful preparation and professional representation to protect your interests.

As the IRS and other agencies begin to use AI, the number of correspondence audits is expected to rise significantly in the future. AI tools can scan and score millions of tax returns in seconds, flagging tiny mathematical errors or missing forms much faster than older agency processes.  Keep in mind, even the IRS makes mistakes and not all notices will result in the balance due on the notice.  Be sure to contact us as soon as you receive a notice to better your chances of correcting the error or working on a plan to minimize further balance increases.

As the IRS and other agencies begin to use AI, the number of correspondence audits is expected to rise significantly in the future. AI

Question 11

What should I do if the IRS is investigating me for tax fraud?

Accepted Answer

Stop all communication with the IRS immediately and contact a tax defense professional right away. Tax fraud investigations are handled by IRS Criminal Investigation (CI) and can result in criminal charges, fines, and imprisonment. You have the right to remain silent and the right to representation. Do not attempt to handle a criminal tax investigation on your own.

Question 12

How does the process work when I hire Tax Defense Company?

Accepted Answer

We start with a free consultation to review your situation and identify your options. Once you engage us, you will no longer be going at this alone.  We will conduct all further contact with the agency on your behalf.  We will work to pause collection activity where possible and begin to gather the information needed to build your case. We then negotiate the best possible resolution and keep you informed every step of the way.

Question 13

How long does tax resolution take?

Accepted Answer

It depends on the complexity of your case and the resolution strategy. Simple penalty abatements can be resolved in a few weeks. Installment agreements typically take 30 to 90 days. An Offer in Compromise can take 6 to 12 months or longer. We set realistic expectations upfront and work as efficiently as possible to resolve your case.

Question 14

What does it cost to hire Tax Defense Company?

Accepted Answer

Our fees vary based on the complexity of your case and the services required. We are transparent about costs from the start — no hidden fees, no surprises. We offer a free initial consultation so you can understand your options before making any commitment. Call us at (714) 617-1989 to get started.

Question 15

Can you help with both IRS and California state tax issues?

Accepted Answer

Yes. We handle both federal IRS matters and California state tax issues, including disputes with the Franchise Tax Board (FTB), the California Department of Tax and Fee Administration (CDTFA), and the Employment Development Department (EDD). Many clients face issues at both levels simultaneously, and we coordinate resolution across all agencies.

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