Common IRS Challenges Faced by Arizona Taxpayers
Arizona taxpayers frequently encounter several challenging scenarios with the IRS, including:
Comprehensive tax audits that scrutinize years of financial records
Substantial penalty and interest assessments that can exceed the original tax liability
Federal tax liens that damage credit and threaten property ownership
Aggressive collection actions, including bank levies and wage garnishments
These situations require specialized knowledge to navigate successfully. Let’s examine how we’ve helped real clients overcome these challenges.
Case Study 1: Business Owner Overcomes Tax Assessment
A Phoenix small business owner contacted us after receiving a $145,000 tax assessment following an audit. The IRS claimed they had underreported income and disallowed legitimate business deductions over a three-year period.
Our approach involved a comprehensive review of the client’s financial records, identifying documentation gaps, and developing a strategic response to each IRS claim. We discovered several calculation errors in the IRS assessment and gathered substantial evidence supporting the legitimacy of the disputed deductions.
By leveraging our knowledge of tax code provisions and audit reconsideration procedures, we successfully challenged the assessment. The final result reduced our client’s liability by over 85%, saving them approximately $123,000. This case demonstrated how thorough preparation and technical expertise can lead to cases won against the IRS, even when initial assessments seem overwhelming.
Case Study 2: Resolving Tax Liens and Saving a Home
An elderly Tucson couple faced potential foreclosure when the IRS filed a $78,000 tax lien against their primary residence. The lien stemmed from a misunderstanding regarding retirement account distributions.
Our strategy included filing for a Collection Due Process hearing and preparing an offer in compromise based on financial hardship. We documented the couple’s limited income, medical expenses, and demonstrated that the tax assessment itself contained errors.
Through persistent negotiation with the IRS Office of Appeals, we secured a lien release and established an affordable payment plan of $200 monthly. This resolution allowed our clients to remain in their home while addressing their tax obligations responsibly. This case illustrates how even severe collection actions can be successfully challenged with the right approach.
Case Study 3: Audit Defense Victory
A healthcare professional in Mesa faced a comprehensive audit questioning over $120,000 in claimed deductions for business expenses, charitable contributions, and rental property losses.
Our strategy focused on reorganizing the client’s documentation system, reconstructing missing records, and preparing a detailed legal position paper citing relevant tax code provisions and precedent cases. We represented the client throughout multiple audit meetings, controlling the flow of information and ensuring the auditor received properly contextualized documentation.
The result was a complete vindication on major issues and minimal adjustments on secondary matters, resulting in our client owing less than $3,000 instead of the potential $40,000+ assessment. This case demonstrates how professional representation can dramatically alter audit outcomes.
Our Proven Methodology for IRS Cases
Our success in cases won against the IRS stems from our methodical approach:
Comprehensive case evaluation identifying legal vulnerabilities and opportunities
Strategic application of tax code provisions, regulations, and case law
Meticulous documentation and presentation of evidence
Persistent advocacy through appropriate administrative and legal channels
How Guardian Tax Law Can Help You
If you’re facing IRS challenges, don’t tackle them alone. Our team specializes in turning tax nightmares into manageable solutions. Contact us today for a confidential consultation to discuss your specific situation and how we can help you achieve a favorable resolution.
Book a free consultation with a Guardian Tax Professional today to get clear answers to your unique situation.
