Joseph Pearman, Attorney at Law Joseph Pearman, Attorney at Law 2026-06-01T20:09:58Z https://www.josephpearman.com/feed/atom/ WordPress /wp-content/uploads/sites/1103754/2024/04/cropped-Joseph_Pearman-site-icon-32x32.png On Behalf of Joseph Pearman, Attorney at Law <![CDATA[What is a short-term payment plan?]]> https://www.josephpearman.com/?p=47810 2026-06-01T20:09:58Z 2026-06-01T20:09:58Z A short-term payment plan is an option that the IRS may use to give you a small amount of additional time to pay off your tax liabilities. If you owe an outstanding balance, the first step is often for the IRS to ask you to pay it in full immediately. There are various options you can use to do this, such as using IRS Direct Pay. You may have the money on hand to pay the outstanding balance, which can resolve the issue relatively quickly. However, if you cannot pay in full right away, then the IRS may authorize a short-term payment plan that runs for up to 180 days. This is done with no additional fee.  Both businesses and individuals are able to set up these short-term payment plans, though businesses need to do so by phone and individuals can sometimes use the Online Payment Agreement application. Either way, although potential penalties and interest may apply, this is a way to pay your tax balance over the next few months without significant issues.

What if 180 days is not enough?

If 180 days will not be enough time to pay off the balance, there are also long-term payment plans. You may need to submit specific paperwork, such as Form 9465. There is often a user fee for a long-term plan, but it depends on the individual. Some low-income taxpayers are eligible to have this fee waived.

Exploring your options

This helps demonstrate various ways to pay off your tax balance with the IRS. It is important to know exactly what you are eligible for and what legal options you have.  ]]> On Behalf of Joseph Pearman, Attorney at Law <![CDATA[What to do after an IRS CP501 notice]]> https://www.josephpearman.com/?p=47808 2026-05-18T04:29:01Z 2026-05-18T04:29:01Z Getting a CP501 notice from the IRS can feel stressful, especially if you are unsure what it means. This notice is usually the first reminder that you have unpaid taxes on your account. While it is important to take it seriously, it does not mean you are facing immediate penalties like wage garnishment or property seizure. The key is to respond early and stay organized.  A CP501 notice will typically include the amount you owe, any added penalties or interest and payment instructions. Before doing anything else, read the notice carefully. Confirm that the balance is correct and compare it with your tax records. Small errors, missing payments or outdated information can sometimes cause confusion. 

Don’t Panic: Start With These Steps

Taking calm and informed action can help you avoid bigger tax problems later. Here are a few helpful steps to follow:
  • Review the notice line by line to confirm the tax year and amount owed.
  • Check your records to see if you already made a payment.
  • Pay the balance if you can, since interest may continue to grow.
  • If you cannot pay in full, look into IRS payment plan options.
  • Keep copies of all letters, payment confirmations and tax documents.
  • Respond before the deadline listed on the notice.
Ignoring a CP501 can lead to additional IRS notices and higher penalties over time. Even if you disagree with the amount, responding quickly gives you more opportunities to fix the issue before it becomes more serious.  Tax matters can become complicated when penalties increase or financial hardship is involved. In situations like these, having a legal professional review your options and explain the next steps clearly may help you make more informed decisions and avoid unnecessary setbacks.]]> On Behalf of Joseph Pearman, Attorney at Law <![CDATA[What should you do if you receive a CP504 from the IRS?]]> https://www.josephpearman.com/?p=47805 2026-05-02T21:23:36Z 2026-05-02T21:23:36Z Receiving any notice from the IRS can be concerning, but a CP504 is particularly alarming. The language is serious because it indicates that the IRS intends to seize certain assets. If you don’t respond promptly, the IRS may escalate its collection efforts. Still, while the situation is urgent, it’s also manageable with the right steps.

What is a CP504 notice?

A CP504 is not the first notice the IRS sends about unpaid taxes. By the time you receive it, they have likely already sent prior reminders. The CP504 notice is a “Final Notice of Intent to Levy” on specific assets, such as your state tax refund. It also warns that broader enforcement actions could follow. It’s crucial that you do not ignore a CP504 because doing so can lead to more aggressive IRS collection efforts, including:
  • Garnishing your wages
  • Taking the funds directly from your bank accounts
  • Filing a federal lien against your property
Once these actions begin, resolving your tax issue becomes more complicated. Instead, you want to act quickly to maintain control over the situation. Your first step is confirming the accuracy of the notice. Mistakes can happen, and you have the right to dispute inaccuracies. If the notice is accurate, you should pay the balance if you can. Doing so will stop further collection notices. If full payment isn’t possible, the IRS may allow:
  • Monthly payment plans
  • Offers in compromise (settling for less than the full amount owed)
  • Temporary hardship status, which can delay collection if you can’t pay
Your CP504 will include instructions for contacting the IRS. Reaching out promptly after receiving your notice shows good faith and can prevent escalation. Considering the legal and financial complexity of your tax issue, you should consider working with someone who can help you evaluate your options and negotiate with the IRS on your behalf. Their assistance can make a meaningful difference and, where possible, protect your assets from IRS seizure.  ]]> On Behalf of Joseph Pearman, Attorney at Law <![CDATA[How far back can an audit go?]]> https://www.josephpearman.com/?p=47803 2026-04-15T11:47:24Z 2026-04-15T11:47:24Z If you have received a notice of audit from the IRS, you are likely curious how far back they are going to look. It is natural that they may want to audit you if there are questions about your most recent tax return.  But what about returns that you submitted in previous years? Should you be worried about the impact of the audit on tax returns you filed a decade ago? As a general rule, you do not have to concern yourself with tax returns going back more than a few years. The IRS usually tries to conduct an audit as quickly as possible, and most of them address tax returns from just the past two years.

3 to 6 years

That said, while the goal is to look at returns from the past two years, the statute of limitations may be extended beyond that. In many cases, the IRS has the option to go back three years to conduct the audit. If this does not provide a satisfactory result, they can sometimes ask to extend the statute of limitations. But even if they do ask for this extension, they generally only ask for another three years. This means that they are usually not going to look at anything that is more than six years old. This is why it is a common piece of advice to keep documentation going back seven years. As long as you do this, you know that you always have the proper documentation on hand to address even the most lengthy audit that the IRS would be expected to conduct. This covers all of your bases, even though the reality is that most audits will just look at returns from the past one to three years.

Guidance when working with the IRS

Going through an audit with the IRS can be complex, especially if they have requested extensions and you have a complicated tax history. It can help to have experienced legal guidance from an attorney at this time.]]> On Behalf of Joseph Pearman, Attorney at Law <![CDATA[Could your home be at risk if you owe the IRS?]]> https://www.josephpearman.com/?p=47801 2026-04-08T02:35:41Z 2026-04-08T02:35:41Z Why home seizures are rare In practice, IRS home seizures are uncommon. Seizing and selling a home is expensive, time-consuming and legally complex, which is why the IRS typically prefers to recover money through other less disruptive means. These include installment agreements, offers in compromise, penalty abatement or wage garnishment. Property seizures are generally reserved for situations involving significant tax debt, repeated noncompliance or attempts to conceal assets. Even then, the IRS must obtain court approval before seizing a primary residence, adding another layer of protection for taxpayers. If a seizure does occur, the IRS will sell the property and apply the proceeds to your tax debt. Costs of the sale are paid first, then your outstanding taxes. Any remaining funds will be returned to you.

Don’t wait until it’s too late

Facing IRS collection action doesn’t mean the situation is hopeless. You may still have options to resolve the matter before it escalates, and the sooner you act, the better. Tax problems don’t age well. Interests compound, penalties multiply and your options narrow with time. Seeking experienced legal guidance can help you understand your rights, explore all available avenues and take proactive steps to protect your interests. This can increase your chances of a favorable resolution and avoid unnecessary financial and emotional stress.]]> On Behalf of Joseph Pearman, Attorney at Law <![CDATA[Receiving a CP2000 due to unreported income]]> https://www.josephpearman.com/?p=47799 2026-03-21T00:25:56Z 2026-03-21T00:25:56Z CP2000 series notice is a letter that serves to inform a taxpayer of an income tax return discrepancy. Specifically, the letter serves as a formal notice that the taxpayer has failed to properly report all of their income. How should taxpayers respond to a CP2000 notice?

Guidance is necessary during a tax controversy

The IRS uses self-reported data provided by taxpayers along with paperwork submitted by employers and financial institutions to validate the true tax liability of specific individuals. In some cases, record-keeping errors by financial institutions or employers could result in the IRS receiving inaccurate information. Those circumstances may require support from a professional who can help counter the claims of unreported income by making thorough disclosures and providing accurate information regarding the taxpayer’s recent income. In the scenarios where a taxpayer may acknowledge that an oversight or miscalculation on their part resulted in an underpayment of taxes, they may need assistance as they correct their tax return, negotiate with the IRS and try to arrange for an appropriate solution. Assistance from a legal professional can make a profound difference for those who have recently received a CO2000 notice and who may face allegations of underreporting their income and, therefore, underpaying their federal income taxes.]]> On Behalf of Joseph Pearman, Attorney at Law <![CDATA[Responding to a CP59 notice of unfiled federal income tax returns]]> https://www.josephpearman.com/?p=47795 2026-03-05T20:48:57Z 2026-03-05T20:48:57Z Most adults need to file income tax returns. Doing helps reconcile their estimated payments and employer withholding amounts with the actual amount of taxes due for the most recent fiscal year.  The Internal Revenue Service (IRS) reviews reports from employers and financial institutions about income to identify discrepancies in individual tax returns and locate people who have not paid what they owe. Those accused of failing to file a federal tax return generally receive Form CP59 as their first notice of an unfiled income tax return. How can taxpayers address such a situation effectively? 

Requesting relief through an extension

Ideally, people who may not be able to file a tax return by the annual due date in April know about the issue in advance. Sudden complications, such as a medical emergency or an employer failing to provide tax paperwork, could leave an individual unable to file their return on time.  They can then ask the IRS for an extension. Those who know they cannot submit their returns on time can file Form 4868 by April 15th to secure an extension. Taxpayers who follow the proper procedure then have until October 15th to file their returns and pay any outstanding balance due.  There may be other solutions available in cases where taxpayers do not notify the IRS in advance and receive a CP59 letter after the April 15th filing deadline for the year. Reviewing any unexpected correspondence from the IRS with a tax attorney can help people evaluate their options for handling the controversy.  Taxpayers who failed to file their annual returns on time may need assistance avoiding collection efforts and penalties that can significantly increase the amount of taxes they owe. ]]> On Behalf of Joseph Pearman, Attorney at Law <![CDATA[What is a CP3219A from the Internal Revenue Service?]]> https://www.josephpearman.com/?p=47790 2026-02-24T15:05:57Z 2026-02-24T15:05:57Z Seeing correspondence from the Internal Revenue Service (IRS) can be unsettling. Once you open the envelope, you may see that you received a CP3219A, which is an IRS Notice of Deficiency, which is sometimes known as the 90-day letter.  This notice is a proposed change to a tax return that indicates an additional tax is owed to the IRS. It explains your rights to challenge the changes before you pay the disputed amount. Understanding the purpose of this notice and your options may be beneficial if you receive one. 

When does the IRS send a CP3219A?

The CP3219A is usually issued when the IRS doesn’t receive a response to previous correspondence, which usually alerts you of mismatched income information. The initial correspondence is a chance to correct the discrepancies between your return and the information submitted by employers. 

What important information is on a CP3219A?

One of the most important things to check when you receive a CP3219A is the deadline, which is typically 90 days from the date on the notice. During that time, you have the right to file a petition with the United States Tax Court, which may stop the IRS from assessing and collecting on the notice until the matter is resolved in court.  Failing to abide by the deadline allows the IRS to assess the proposed tax, as well as related penalties and interest. At that point, the balance due becomes official, and collection activities can begin.  If you receive any notice from the IRS, including a CP3219A, it’s critical to understand your rights and responsibilities. Working with someone who’s familiar with these notices may be beneficial since they can explain what you need to know and help you through the process.   ]]> On Behalf of Joseph Pearman, Attorney at Law <![CDATA[Injured or innocent spouse relief can limit tax liability]]> https://www.josephpearman.com/?p=47788 2026-02-04T13:52:06Z 2026-02-04T13:52:06Z Married couples share their income and resources, so they often file joint tax returns. Frequently, one spouse prepares the tax return with minimal involvement on the part of the other spouse. They simply sign the document and trust that everything is accurate.  They may later learn that their spouse misrepresented their finances or underpaid their taxes substantially. In such cases, the person who was not aware of the tax issues might be eligible for innocent spouse relief or injured spouse relief. 

What is the difference between injured and innocent spouses? 

Innocent spouse relief is available for individuals facing Internal Revenue Service (IRS) tax controversies. When there are issues with the underpayment of federal taxes, those who are unaware of financial misrepresentation or fraud can ask the IRS to exempt them from the consequences of the tax controversy.  Injured spouse relief is similar, but it is available to those facing tax controversies at the state level in Indiana when the Indiana Department of Revenue identifies income tax issues. Both options require formal communication and potentially also legal assistance. While an attorney's support is not technically mandatory, most people may struggle to understand the nuances of income tax law and the paperwork required to pursue innocent or injured spouse relief.  Consulting with a lawyer about an income tax controversy stemming from a joint tax return can be beneficial for spouses who are initially unaware of their income tax issues. Spouses may be eligible for relief at both the state and federal levels if they follow the appropriate procedures. With the right approach and paperwork, spouses who did not pair their tax returns may sometimes be able to avoid criminal and financial consequences.]]> On Behalf of Joseph Pearman, Attorney at Law <![CDATA[Have you received a CP14?]]> https://www.josephpearman.com/?p=47786 2026-01-25T21:50:41Z 2026-01-25T21:50:41Z What is a CP14 notice? The IRS sends a CP14 notice to inform taxpayers that they owe money. There are a you might receive this notice, such as the following:
  • You didn’t pay the full amount due with your tax return.
  • The IRS reviewed your tax return and discovered a discrepancy, resulting in a balance due.
  • You didn’t file on time and now you have a late fee and penalties.
  • You received previous notices and haven’t taken any action.
  • There were delays in processing your return and the notice was sent out before the payment was received.
It could also be an error. The notice should explain why the IRS shows that you owe money. Do not ignore a CP14 if you receive one, even if you believe the IRS sent it in error.  Failing to respond could result in more severe consequences, such as interest, penalties and liens. Read the notice carefully as it will contain important information, including:
  • Your total balance due (including penalties and interest)
  • Reason for the balance
  • Payment deadline
  • Instructions for either paying or disputing the notice
Compare the IRS’s numbers against your records. You will want to ensure whether the notice is accurate before taking further action. If the notice is correct, go ahead and pay your balance. If you believe the CP14 is incorrect, you can dispute it by taking the following steps:
  1. Gather any documentation that supports your claim, such as canceled checks or other financial records.
  2. Contact the IRS and discuss your concerns, providing your supporting evidence. You may need to send a written explanation via their website or certified mail.
If you can’t resolve the issue and it continues to escalate, you will want to speak with a legal professional about your CP14 notice. They can explain your rights and discuss further action.]]>