Serving clients in all 50 states · Based in Central Arkansas (501) 209-7393
Challenging What You Owe

The number on your IRS letter may be wrong.

Before you pay, and before you agree to any payment plan, it's worth asking a simple question: do you really owe this? A lot of the time, the honest answer is "not all of it."

What’s happening

When the IRS sends you a bill, it looks official. It has numbers, dates, and penalties all added up. So most people assume it must be right.

But IRS bills are wrong more often than you’d think. Some are built on guesses. Some include penalties that should come off. Some are missing payments you already made. And some are for debts the IRS has run out of time to collect.

That’s why we never start with “how are you going to pay this?” We start with “is this even right?”

How we check the number

We get your full IRS record. It shows every year, every charge, every penalty, and every payment. It also shows how the IRS came up with the amount, and how much time they have left to collect.

We look for the usual mistakes. We list the most common ones below. Most bills that are too high have at least one.

Then we fix what’s wrong. How we do that depends on the mistake.

  • If the IRS filled in a return for you, we file your real one. The IRS calls their version a Substitute for Return. Your real return usually brings the bill down.
  • If an old audit went unanswered, we can ask the IRS to look again with new proof. This is called audit reconsideration.
  • If penalties shouldn’t be there, we ask the IRS to take them off. This is called penalty abatement.
  • If there’s real doubt that you owe the tax at all, there’s a way to settle on those grounds. It’s called an Offer in Compromise, made on the grounds that you may not owe the tax.

What happens next

Once the number is right, we look at what’s left. Sometimes it’s nothing. Sometimes it’s much smaller than the bill you started with. Either way, the next step is now based on the real number, not the IRS’s first guess.

How bills get too big

The most common reasons an IRS bill is wrong

We check every one of these before we talk about how to pay anything.

01

The IRS filed for you

When you don't file, the IRS can fill in a return for you. They use the income they know about and leave out most of what you can subtract.

02

An audit nobody answered

If the letters went unanswered, the IRS made their changes without hearing your side.

03

Penalties that shouldn't be there

Many penalties can come off for a clean history or a good reason, like a serious illness.

04

Payments that went missing

Payments sometimes land on the wrong year, or never get credited at all.

05

Time ran out

The IRS usually has 10 years to collect. Some old debts are past that and shouldn't be collected at all.

06

The tax itself is wrong

Sometimes there's real doubt that you owe the tax. The IRS has a way to settle on those grounds too.

Phillip Gangluff, EA

“The first thing we do on every case is check the IRS's math. You'd be surprised how often the real number is smaller, sometimes a lot smaller.”

Phillip Gangluff, EA
Your next move

What to do right now

Questions? (501) 209-7393
  1. 1

    Don't pay it just because it came in the mail

    And don't agree to a payment plan on the phone until the number has been checked.

  2. 2

    Gather your IRS letters

    Every one you can find, especially anything showing an amount due.

  3. 3

    Pull together your old returns

    If you have them. If not, that's OK. We can get your records from the IRS.

  4. 4

    Book a free consultation

    We'll tell you whether the number looks right, and what we'd check first.

Straight answers

Questions about Challenging What You Owe

Can you really get an IRS bill lowered?

Often, yes, when the bill is wrong. We can't promise a result, because the IRS makes the final call. But when they billed you on a return they filled in, or added penalties that should come off, we can show them the real numbers.

How do you know if my bill is wrong?

We get your records straight from the IRS. They show every year, every charge, every penalty, and every payment. Then we compare that to what really happened. That's where the mistakes show up.

What if I already agreed to a payment plan?

You can still challenge the amount in many cases. A payment plan doesn't mean you agreed the number was right. Let's look at it.

Is this the same as settling for less?

No. Settling usually means you owe the money but can't pay it all. Challenging the bill means the number itself is wrong. We always check the number first, because it changes everything after.

Picture a few months from now

You open the mail without your stomach dropping.

The IRS calls us, not you. The balance has been fought down to what you actually owe, if anything, and whatever's left has a plan in writing built on your real numbers. And you've stopped carrying this alone. That's what we're working toward, starting with one free conversation.

(501) 209-7393

Private · Confidential · No obligation

Based in Central Arkansas, serving all 50 states

Talk to Katrina: (501) 209-7393