FAQ’s

We provide peace of mind by resolving Irs and state Tax problems

Tax Relief

Tax relief is any IRS program or policy designed to help qualified taxpayers manage, reduce or settle their tax debt. Covington Tax Solutions specializes in finding the best possible solution for your tax issues through a wide range of services.

Covington Tax Solutions serves its clients in a revolutionary two-phrase approach to tax relief that consists of an investigation phase and a resolution phase. First, our experienced investigation team will contact the relevant taxing authority to conduct a 360-review of your tax file to find the best possible solution to your tax issues. Then, our highly successful team of tax attorneys, CPAs, and Enrolled Agents (EAs) will work with the IRS on your behalf to secure the best outcome possible.

Every case is different, and each comes with its own unique challenges. Although most tax relief cases are resolved anywhere from 2 to 12 months, we will be able to give you a better timeline once we determine the complexity of your case. The timeframe will vary based on the client’s level of cooperation and the response time from the relevant taxing authority. Rest assured; we will do all we can to get you the best possible result in the quickest time possible.

Each case is unique. It’s important to manage expectations and understand that we may not be able to save you any money at all. We have been very successful in resolving, reducing, and settling tax debt for those clients who qualify. In fact, we have resolved over $1 billion in tax debt for our clients. Once we evaluate your case, we will be able to determine what, if any, tax resolution options you qualify for.

During your free, no-obligation tax consultation, one of our knowledgeable tax associates will review your case and discuss the services we offer that can help solve your tax issues. Some of these services include:

  • Representing you before the IRS
  • Completing all necessary tax preparation, including overdue returns
  • Ending wage garnishments and levies
  • Setting up installment agreements
  • Setting up a non-collectible hardship status
  • Preventing the seizure of assets
  • Removing tax liens
  • Audit defense and reconsideration
  • Negotiating an offer in compromise

Receiving an IRS notice in the mail can be scary, but the situation can be less daunting if you know what to do. If you’re an Covington client, you should notify your case manager of any new notices you receive. Learn more about what to do when you receive an IRS notice here.

Tax Resolution

We offer a variety of tax resolution programs, from installment plans, to offers in compromise and much more. Each tax situation is unique. View our list of tax resolution options here.

An Offer in Compromise will not directly affect your credit score. However, liens may be filed with a submission for an Offer in Compromise.

 

Tax Preparation

Our team of tax preparation specialists are experienced in preparing tax returns for every filing status, for individuals and businesses.

Every tax situation is unique and may require additional information and documentation but for the most basic tax return, we will need:

  • Completed Tax Organizer (provided by Covington Tax Solutions)
  • Income documents, such as W2s and 1099 Forms
  • Federal and state tax returns from prior years
  • Social security numbers for you, your spouse, and any dependents listed on your return. Not sure who you can claim as a dependent? R

 

Tax Settlement

A tax settlement is an arrangement made with the IRS and/or state taxing authority that allows the taxpayer to settle their tax debt for less than the amount owed, for those that qualify.

A tax settlement may allow the taxpayer’s tax debt to be significantly reduced, allowing them to move forward with a new start.

Each case is unique, and taxpayers will need to qualify for a settlement. Hiring a tax professional ensures your options are fully explored so that if you do qualify, you have the highest chance of success. Generally, taxpayers undergoing significant financial hardship are more likely to receive a settlement.

There is no guaranteed method to having a settlement approved by the IRS but having a qualified tax professional represent you can help you achieve the best outcome in most cases.

Tax Audit

Tax audit representation is a service in which a tax professional represents a taxpayer during or even after an IRS or state tax audit. The tax professional will help organize and prepare documents, may attend meetings with the tax authority, and handle all correspondence on the taxpayer’s behalf.

There are many ways that the IRS can select a return for audit. Some factors include not reporting all income, being vague about expenses, reporting losses year after year, and claiming excessive deductions.

If you are audited, the best thing you can do is tell the IRS what they want to know. Do not ignore the situation and decide if you want or need tax audit representation to handle everything for you.

Yes, there are correspondence audits, in which the IRS will send you a letter requesting documents or proof of a statement. Office audits request in-person meetings to clarify your tax information. A field audit is the most intrusive kind of audit and involves the IRS visiting you at home or work to examine your records. Generally, tax audit representation is a good idea for office and field audits.

Once you are on the IRS’s radar, there are no sure ways of getting out of an audit. Your best bet is to consider tax audit representation, especially if it is an office or field audit. Remember, just because you were selected for an audit doesn’t mean there will be an increase in tax.

After the IRS reviews your information, they will assess any taxes and penalties you owe. At this point, if you owe, it is a good idea to try and appeal the assessment to see if the IRS is willing to settle. Having an experienced tax professional working on your behalf for this process can give you a better chance of resolving the matter.

If paying your tax bill seems impossible, you should consider tax resolution options, such as an installment agreement with the IRS. You can also apply for a hardship resolution to try to settle your debt for less than what you owe. If you find yourself at this stage, you should consider consulting with a tax professional to see if you qualify and review all resolution options that may be available.

Covington Tax Solutions