Somerset Tax Partners, LLC

IRS examinations—commonly referred to as audits—are increasingly focused on identifying clear errors or inconsistencies in tax returns. While audit rates remain relatively low, notices are often triggered by mismatched income, missing documentation, or questionable reporting.

Examinations may be:

• Automated (Correspondence Audits):
  Typically handled by mail and limited to specific items on the return. Corrections are reflected in your tax transcript, followed by an assessment or refund notice.

• Mail or In-Person Audits:
  More comprehensive reviews that may involve the entire return. Documentation is requested, and interviews or meetings may be required. Taxpayers have the right to representation at all stages.

If we did not prepare the original return, we assist in compiling requested documentation, defending reported items, and presenting tax code–based arguments where applicable. While returns are generally not amended during an examination, preparedness and accurate documentation are essential to achieving the best outcome.

The collections process begins once a tax balance is assessed. If returns are unfiled, the IRS may prepare a Substitute for Return, which often results in higher tax liability due to missing deductions or elections.

As collections progress, unpaid balances may lead to wage garnishments, bank levies, or asset seizures—always preceded by mailed notices. Ignoring these notices can result in forfeited appeal rights and loss of eligibility for favorable resolution programs.

Our first step is to verify accuracy. Any errors in assessments or notices must be addressed before pursuing payment arrangements. When appropriate, we request hearings or appeals on your behalf to protect your rights and explore alternatives.

When full payment is not feasible, several relief options may be available depending on financial circumstances:

• Installment Agreements: Structured payment plans to resolve balances over time.

• Currently Not Collectible Status: Temporary relief for taxpayers experiencing economic hardship.

• Offer in Compromise: A settlement option for taxpayers who can demonstrate inability to pay the full balance or qualifying exceptional circumstances.

We evaluate your financial situation, supporting documentation, and eligibility to determine whether a reasonable and defensible resolution can be pursued.

While the IRS Fresh Start Initiative has ended, Offers in Compromise remain available for eligible taxpayers. Offers submitted early in the collections process may temporarily suspend enforcement actions.

Qualification typically requires documented economic hardship, including income, assets, and liabilities. In certain cases, exceptional circumstances—such as inability to access equity—may also justify an offer.

Each case is reviewed carefully to determine viability. Even well-supported offers may face scrutiny, making professional preparation and representation critical.

Additional relief may be available in specific situations, including:

• Innocent Spouse Relief

• Injured Spouse Relief

These options may apply in cases involving spousal actions, lack of knowledge, coercion, or abuse. Filing status decisions and proper documentation play a significant role in eligibility.