If the IRS claims you owe substantial taxes that you know you don’t, they may make you attend a hearing in tax court to prove your case. Steven from California found himself in such a position when the IRS assessed him for $60,000 in unpaid back taxes. Steven contended that he owed next to nothing and hired Blue Tax to attend the tax court hearing on his behalf to prove that his business expenses should be accepted by the Audit Division of the Internal Revenue service.

The goal for the Blue Tax team in going to court was to ensure that no collection action took place while they worked to resolve the client’s audit issues in tax court. Also, they wanted to prove that the client’s expenses were, in fact, legitimate and should be allowed by the IRS and that this tax liability should not exist.

Blue Tax’s audit department, legal counsel, and account managers worked together hard to prove that these expenses were, in fact, legitimate. They came up with a list of documents that they needed from the client for the tax years in question (invoices, bank statements, examination report, tax returns etc). When the client provided these items, the Blue Tax team was able to recreate the books for those tax years and back up the Schedule C expense claims in order to prove this in tax court. TOP