Taxpayer Tools: How Tax Practitioners Help Resolve IRS Issues

When the IRS comes calling, it’s easy to feel overwhelmed or uncertain about what to do next. Fortunately, there are clear paths available to help resolve tax issues. 

Blue’s Books & Taxes has worked with many clients to navigate these options. Choosing the right approach—and using it correctly—can mean the difference between a quick resolution and a long-term financial burden.

Here are the key tools available to resolve IRS debt and other tax problems:

1. Installment Agreements (Payment Plans)

An installment agreement lets taxpayers pay off their IRS debt over time. These are often the most accessible option for individuals or small businesses who cannot afford to pay the full amount right away. We can set up structured payments that fit within your monthly budget while staying in good standing with the IRS.

2. Offer in Compromise (OIC)

An Offer in Compromise lets qualifying taxpayers settle their IRS debt for less than the full amount owed. It’s a highly specific program that requires you to prove you truly can’t afford to pay the full balance. The process includes submitting detailed financial documentation and completing a formal application. With the right strategy and complete transparency, it can provide significant relief, but only if the numbers back it up.

3. Currently Not Collectible (CNC) Status 

If your financial situation is truly dire, the IRS may mark your account as "currently not collectible," which temporarily halts collections. This does not erase the debt, but it provides time to stabilize financially. It is often a relief for those recovering from medical hardship, job loss, or personal crisis.

4. Penalty Abatement

Many taxpayers are hit with penalties for filing late or underpaying. In some cases, these penalties can be reduced or removed. Reasonable causes, such as illness, a death in the family, or natural disaster, may support a penalty abatement request. Knowing how to structure and document the request is where a tax professional is essential.

5. Audit Representation

Facing an IRS audit without a representative is like going to court without a lawyer. We can speak directly with the IRS on your behalf, prepare documentation, and ensure the process stays fair. We also help reduce the risk of expanding the audit unnecessarily.

6. Appeals Process

If you disagree with the IRS, you have the right to appeal. Whether it is an audit determination, a denied Offer in Compromise, or a penalty you believe is unfair, the IRS Independent Office of Appeals provides an opportunity for a second review. We have seen positive outcomes for clients who were initially denied relief but won on appeal.

When used correctly, these tools give taxpayers a real chance at resolution. The key is knowing when each one applies, and how to present your case clearly and completely. That is where experience and advocacy matter most.

If you need to resolve IRS issues with an Enrolled Agent, contact us for a free consultation.