Most IRS letters aren’t as bad as they look. Some are, though, and you can’t always tell which kind you’ve got until you read it closely. So read it. Find the response date, and talk to a tax pro before you send anything back.
Plenty of people who come to us have had the envelope for weeks. We get it. We’d still rather see it on day two.
Why Someone Ends Up Needing a CPA Firm for Back Taxes and IRS Audit Help
It’s almost never a dramatic story. A slow season hits, payroll taxes fall behind, and the plan is to catch up next quarter. Or there’s a divorce, a move, a sick parent, and somehow two years pass without a return getting filed.
Then the penalties start working against you. Filing late costs 5% of the unpaid tax per month, up to 25%. Paying late costs 0.5% a month, also capped at 25%, and it keeps ticking until the balance hits zero. Interest piles on top. A $10,000 problem doesn’t stay $10,000 for long.
The First Week After the Letter
Look in the corner of the letter for the notice number. It tells you what you’re dealing with. A CP2000, for instance, means the IRS thinks income is missing from your return, usually because a 1099 didn’t match. It’s a proposed change, not an audit, and you’re allowed to disagree with it.
Next, the date. Thirty days is common, but don’t assume. Then pull the return, W-2s, 1099s, and bank statements. Don’t mail a check or call to argue yet. The IRS gets things wrong more often than you’d guess.
Form 2848 is the power of attorney that lets a CPA deal with the IRS for you. Once it’s signed, Tilbrook CPA takes the calls instead of you.
Quick warning, since it comes up every tax season: the IRS starts with a letter. Somebody on the phone demanding gift cards isn’t the IRS.
What a CPA Firm for Back Taxes and IRS Audit Help Does for You
The work is less mysterious than people expect. Missing returns get filed so you’re current. The IRS’s math gets checked against your records. If there’s an audit, someone answers it with paperwork instead of guesses. And whatever you really do owe, you get a plan for paying it.
The IRS has more ways out than most people know about:
| Option | What it means | Usually a fit when |
| Installment agreement | You pay the balance monthly | You can pay, just not all at once |
| Offer in compromise | The IRS accepts less than the full amount | Your income and assets can’t cover the debt |
| First-time penalty relief | Certain penalties are removed | Your record was clean for the past three years |
| Currently not collectible | Collection is paused for now | Paying would leave you short on basic living costs |
At Tilbrook CPA, the first thing we pull is your IRS transcript. It shows what the IRS has on file, which often isn’t what you remember. From there we plan around whichever deadline comes first. There’s more on how that works on our IRS audit defense and tax resolution page.
When to Bring In a CPA Firm for Back Taxes and IRS Audit Help
Honestly? A small math-error notice you can usually sort out yourself. We’d call sooner if the letter says “examination” or “audit,” if you’ve gone more than a year without filing, or if you’ve received a notice of intent to levy. That last one means the IRS is getting ready to take money from your paycheck or bank account.
Unpaid payroll taxes are urgent too, because the IRS can come after owners personally for money withheld from employees.
Tilbrook CPA works with people in Jacksonville, Orange Park, Ponte Vedra, and St. Augustine who are holding exactly these letters. A lot of them come to Tilbrook CPA a little embarrassed. They shouldn’t be. This happens to careful people all the time.
How Far Back Can the IRS Go?
Usually three years from when you filed. It’s six if you left out more than a quarter of your income. If you never filed, or there was fraud, there’s no limit, which is one more reason not to let missing years sit. The letter is the start of a conversation with the IRS, not the end of one. You’ll have more choices on day five than on day fifty. If you’d like Tilbrook CPA to read it with you, bring it in.