FAQ

Frequently Asked Questions

1) What are my options if I am contacted by the IRS?

You have several options: you can pay the amount the IRS claims you owe; you can contact the IRS and hope you can arrange for some kind of payment plan; you can hire a team of experts like Madison Tax Group, who with your approval, will defend you before the IRS, seeking a favorable resolution of the matter.

2) What strategy is most effective in dealing with the IRS?

First and foremost: do not ignore the problem. It will not go away. Rather, you will incur penalties and interest charges the longer you wait, and ultimately face a tax lien. Some taxpayers with state tax issues actually face criminal charges. As with any serious legal or financial matter, you want the best possible professional advice and service. We can help.

3) Can I negotiate on my own behalf?

Even if your background includes dealing with the IRS or state tax departments, it would generally be a mistake to represent yourself. Anything you may say in passing can be used to prosecute your case, and one’s emotions often intrude on effective negotiation. You’d be much better served—and probably save yourself a lot of money—by engaging a highly effective team of professionals to mount your defense. The stakes are much too high to “do-it-yourself.”

4) How will Madison Tax Group handle my case?

The IRS knows how stressful it can be facing Federal tax issues. Their goal is to collect as much as they can as quickly as they can. As part of our Phase 1 methodology, after your sign a limited Power of Attorney with Madison Tax Group, our team of tax experts will notify the IRS that we’re representing you. From then on, the IRS will communicate with us. We’ll generally ask for a Stay of Enforcement, giving us the time to obtain and analyze all relevant documents. Naturally, this will take some time. Depending on the size and complexity of your situation, along with a wide variety of personal financial factors, your CPA will provide you with recommendations for how you can best proceed. No decisions will be made on your behalf without your express understanding and approval.

5) Can you speak to the IRS on my behalf?

Serving as your designated representative in all communications with the IRS is one of our most important—and effective—services. Our team has years of experience dealing with, and in some cases working at, the IRS, as well as expert knowledge of the Tax Code. The peace of mind you achieve with our representation allows you to focus on the steps you need to take to get your financial life back together, without harassing phone calls and letters.

6) Is there room for negotiation?

Yes. The IRS Commissioner himself recently stated publicly that he was providing his collection personnel great latitude in resolving cases. Depending on your individual situation, you may be entitled to a vastly reduced settlement, through an Offer in Compromise. All obligations can be disposed of through a Currently Non-Collectable determination. Penalty abatements can be granted, as well as a payment installment plan. As in any negotiation, the more experienced the negotiator, the better the terms. We’re very good at what we do.

7) Can you help me with wage garnishment?

Yes. We can help lift a Federal or state garnishment, often immediately.

8) Can you help me with state tax problems?

Taxpayers frequently experience Federal and state tax enforcement proceedings. It could be a grave error to ignore your state tax issues. Madison Tax Group is licensed to work on all state tax cases.

9) Can I go to jail for owing taxes?

The Federal government can bring a criminal case against those who have failed to file tax returns. Certain states can and do prosecute criminally for non-payment of taxes.

10) Can’t my accountant or attorney handle this for me?

While your licensed accountant or attorney can handle your case, typically, he or she does not specialize in tax collections. As in any other profession, obtaining a specialist’s services is critical in serious cases. Effective defense of IRS or state collection efforts requires the best specialist you can hire. If you visit most tax attorney or accountants’ offices, they will demand a significant up-front retainer. In contrast, because this is all we do, Madison Tax Group’s fees are much more modest.

11) How are your fees determined?

We base our fees on the size of your tax liability. Larger cases tend to be more intricate and time-consuming.

We take a 2-Phase approach: In Phase 1, we charge a nominal fee to open your case, announce our representation to the IRS, request a Stay of Enforcement and case file documents, analyze your case particulars, and then make recommendations. In Phase 2, again, based on the size of your liability, we will initiate your defense and negotiate the best possible outcome. In approximately 50% of cases we take on, we can negotiate a vastly reduced liability, if not a complete dismissal of all liabilities.

12) Okay. What’s the next step?

Call us. Today. Now. Every day you wait, you face additional penalties and interest charges, plus the distinct possibility that the IRS will place a lien on all of your personal property and freeze your bank accounts. We know what’s at stake and we move fast. Call us at 1-888-TAX-5060 (829-5060) or Click Here to complete an on-line questionnaire. We’ll get back to you immediately.