Tax resolution and IRS representation in Colorado

A tax problem is resolved one step at a time, and the first step is almost always the same. Under a signed power of attorney, SBA CPA takes over communication with the IRS and the Colorado Department of Revenue, establishes exactly what the agency has on record, and builds a plan that brings you into compliance and resolves the balance at the lowest cost available to you.

What’s included

Review of IRS and Colorado notices, with a written plan of response

Representation under a power of attorney (IRS Form 2848 and state equivalents)

Preparation of unfiled returns and reconstruction of incomplete records

Release of wage and bank levies, and release of federal tax liens

Installment agreements, currently-not-collectible status and offers in compromise

Penalty abatement and innocent spouse relief

Audit, appeals and payroll (trust fund) tax representation

A "Yes, we are open" sign hanging inside the glass door of a small clothing boutique

What should you do when a letter from the IRS arrives?

An envelope from the IRS is unsettling, and that reaction is entirely understandable. Most notices, however, are not emergencies, and many are resolved with a clear written reply and the right documents. What makes a tax problem worse is delay: each notice carries a response date, and every missed date narrows the options available to you.

Read the notice for three details: the notice number in the corner, the tax year it concerns and the date by which it asks you to respond. Then send us a copy, so we can confirm the deadline and what the agency is asking for. It also helps to know that the IRS does not begin an audit by telephone; a call or text demanding immediate payment is very likely a scam.

How is SBA CPA different from a national tax relief company?

Some national tax relief companies are built on advertising, fear and volume. Cases are handed to offshore processing teams, clients rarely speak with the same person twice, and the promise of settling for “pennies on the dollar” arrives before anyone has looked at the account. We work differently, and deliberately so.

Senior professionals on our own team. Your case is handled by experienced CPAs and enrolled agents on our staff, who speak with the IRS themselves and know your file.
Clarity in place of fear. We explain where you stand, what the agency can and cannot do, and every option available to you, including the ones that cost you less.
A plan you can keep. We work through the resolution with you, one step at a time, so the outcome fits your actual finances rather than a sales script.
Fees you see in advance. The first step is a flat fee, and each later step is quoted in writing before it begins.

How does a tax resolution case unfold?

Nearly every case follows the same sequence, although not every case needs every step.

Representation. You sign Form 2848, the power of attorney and declaration of representative, and the state equivalent where needed. We file it, obtain your account transcripts and speak with the agency to establish exactly what is on record. From that point, most communication runs through us rather than you.
Protection. If wages or a bank account are being levied, we work to have the levy released while a resolution is arranged.
Compliance. We prepare any unfiled returns, because nearly every form of relief requires your filings to be current, and a return we prepare is usually more favorable than the substitute return the IRS prepares on its own.
Reduction. Where you qualify, we request penalty abatement, innocent spouse relief or, in the right circumstances, an offer in compromise.
Resolution. We arrange the payment plan or other resolution that fits what you can realistically pay.

The tax resolution roadmap applies this sequence to your situation and shows the cost of the first step.

What is a CP2000 notice?

A CP2000 notice means that income or payment information the IRS received from third parties, such as employers, banks or payment platforms, does not match your return. It proposes a change; it is not a bill. You can agree, partly agree or disagree by the date listed.

Consider the owner of a small boutique who receives a CP2000 proposing about $9,000 in additional tax on $40,000 of card sales reported on a Form 1099-K. Those sales were already included in gross receipts on her return, simply not broken out separately. A reply that reconciles the 1099-K to her books, with a brief explanation, can remove the proposed change entirely. Without a reply, the IRS may issue a bill, and interest continues to accrue.

What if you owe more than you can pay?

Several paths are available, and the right one depends on how much you owe and what you can realistically pay.

Short-term payment plan. If you owe less than $100,000 in combined tax, penalties and interest, you can generally pay in full within 180 days.
Long-term installment agreement. If you owe $50,000 or less and have filed all required returns, you can generally arrange monthly payments online. Larger balances remain possible with more extensive financial disclosure. These thresholds come from the IRS payment plans page and apply to individuals applying online.
Offer in compromise. An offer in compromise can settle the debt for less than the full amount. The application fee is $205 unless you meet the low-income qualifications, and a lump-sum offer requires 20% of the offer amount with the application. Because the IRS weighs your income, expenses and asset equity, we prepare the financial statements on Forms 433-A and 433-B with care and tell you candidly whether an offer is likely to succeed.

If a balance arises from a current or former spouse’s tax, Form 8857 requests innocent spouse relief. Business owners with unpaid payroll taxes face a particular risk: the trust fund recovery penalty can make the people responsible for withholding personally liable, so those cases warrant prompt attention.

Can penalties be reduced or removed?

Penalties often account for a meaningful share of the balance, so the question is worth asking in every case. First-time abatement can remove failure-to-file, failure-to-pay and failure-to-deposit penalties for taxpayers who filed the same type of return on time for the prior three years and incurred no penalties in that period other than an estimated tax penalty. Businesses face a few additional conditions. Where first-time abatement does not apply, relief for reasonable cause may, for example when a serious illness or a disaster prevented you from filing.

What happens in an IRS audit?

The IRS conducts audits by mail or through an in-person interview, and generally examines returns filed within the last three years. Preparation is what changes the outcome. We review the items under examination, assemble the records that support them, prepare a written response and attend any meetings with you or on your behalf, keeping each answer confined to what was asked.

A framework for any tax problem

Every tax problem resolves through the same three stages. Respond on time, so that your options remain open. Become compliant by filing any missing returns, because most relief depends on it. Then resolve the balance with the least costly option for which you qualify. Once the matter is closed, our tax planning team can help ensure it does not recur. When you are ready, begin with the tax resolution roadmap or an introductory call with our client services team.

Common questions

What should I do first when I receive a letter from the IRS?

Note the response date and do not set the letter aside. Many notices are routine and can be resolved with a clear written reply and supporting documents, but the deadline determines which options remain open. Send us a copy promptly so we can assess it.

Is a CP2000 notice a bill?

No. A CP2000 proposes changes because income reported by third parties, such as employers, banks or payment platforms, does not match your return. You can agree, partly agree or disagree by the date listed; without a reply, the IRS may send a bill.

Can you speak with the IRS on my behalf?

Yes. Once you sign Form 2848, a power of attorney, a member of our team can represent you before the IRS, obtain your confidential account information and handle the communication for you. We file the equivalent authorization with Colorado when the state is involved.

Can my tax debt be settled for less than I owe?

Sometimes. An offer in compromise can settle a debt for less than the full amount, but the IRS weighs your income, expenses and asset equity and generally will not accept an offer if you could pay in full through a payment plan. We assess whether you are likely to qualify before you pay the application fee, and we tell you plainly when an offer is not realistic.

Will the IRS remove penalties?

Often, if you qualify. First-time abatement is available to taxpayers with a clean compliance history for the prior three years, and relief for reasonable cause applies when circumstances beyond your control, such as a serious illness or a disaster, prevented you from filing or paying.

How is tax resolution work priced?

Every case begins with a power of attorney for each agency involved, a flat fee that also covers the first hour with the agency. Later steps, such as preparing missing returns, requesting penalty relief or arranging a payment plan, are mostly flat fees, and each is quoted in writing before it begins.

How do we get started?

Use the tax resolution roadmap to see the likely steps for your situation, or schedule an introductory call. Our client services team will ask what the agency has sent and when it is due, so representation can begin quickly.