Received an IRS Notice? 5 Steps to Take Right Away

Finding a notice from the IRS in your mailbox can be stressful, but the most important thing is not to ignore it. IRS notices often include deadlines, and responding promptly can help protect your rights and prevent the issue from becoming more serious.

Here are five steps to take right away:


  1. Read the Notice Carefully


Take time to review exactly what the IRS is saying. Check the tax year involved, any balance listed, and whether the IRS is requesting documents or a response.

  1. Compare It to Your Records


Review your tax return and supporting documents to confirm the information is accurate. Sometimes notices are based on incomplete or outdated information.

  1. Watch the Deadline


IRS notices typically include a deadline to respond. Missing it can lead to additional penalties, interest, or collection action.

  1. Don’t Assume the IRS Is Correct


A notice does not automatically mean you owe what the IRS claims. You may have options to provide documentation, dispute the issue, or request relief.

  1. Reach Out for Help if Needed


If your notice involves an audit, balance due, penalties, or collection action, getting professional guidance early can make a big difference.

At Wilson Tax Law Group, we help taxpayers understand IRS notices and work toward practical solutions. If you received a notice and are unsure what to do next, contact our office.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

 

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC Tel: (949) 397-2292 (Newport Beach Office) Tel: (714) 463-4430 (Yorba Linda Office)

 

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.

 
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Tax Problems After Divorce: Who Is Responsible for the IRS Debt?

Many individuals believe that once a divorce is finalized, they are no longer responsible for tax issues connected to their former spouse. Unfortunately, that is not always the case.

When a married couple files a joint tax return, both spouses generally become jointly and severally liable for the taxes owed. This means the IRS may pursue either spouse for the entire balance, regardless of what a divorce judgment or settlement agreement says.

Even if your divorce agreement states that your former spouse is responsible for paying the tax debt, the IRS is not bound by that agreement. If the taxes remain unpaid, the IRS may still attempt to collect from you directly.

This can include:


In many cases, taxpayers do not discover the issue until years later when they begin receiving IRS notices or collection letters.

Common Post-Divorce Tax Issues

Post-divorce tax problems often arise when:

  • Income was underreported on a joint return

  • Tax returns were filed incorrectly

  • One spouse handled all financial matters during the marriage

  • Payroll or business taxes went unpaid

  • A former spouse failed to comply with the divorce agreement regarding taxes


These situations can become especially stressful when the taxpayer had little involvement in the finances or was unaware of the issue altogether. 

Innocent Spouse Relief

In some circumstances, taxpayers may qualify for Innocent Spouse Relief or other forms of IRS relief.

Innocent Spouse Relief may be available when:

  • A joint return was filed

  • The liability resulted from the other spouse’s actions

  • You did not know, and had no reason to know, about the issue

  • Holding you responsible would be unfair under the circumstances


The IRS evaluates several factors when reviewing these requests, including financial involvement, access to records, education, and whether one spouse controlled the finances during the marriage.

Do Not Ignore IRS Notices

IRS collection matters rarely resolve themselves. Ignoring notices can lead to additional penalties and more aggressive enforcement action over time.

Addressing the issue early may help preserve important resolution options and reduce the risk of escalating collection activity.

At Wilson Tax Law Group, we assist taxpayers with IRS and California tax controversies, including Innocent Spouse claims, collection defense, and post-divorce tax disputes.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC Tel: (949) 397-2292 (Newport Beach Office) Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.
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Can the IRS Really Take Your Passport?

Yes — in certain situations, the IRS can notify the U.S. Department of State to deny, revoke, or limit a taxpayer’s passport because of unpaid federal tax debt.

This typically applies when a taxpayer has “seriously delinquent tax debt,” which is currently more than approximately $65,000, including penalties and interest. Once certified, the State Department may deny a new passport application, refuse a renewal request, or place restrictions on an existing passport.

Many taxpayers are surprised to learn that unpaid tax balances can eventually affect international travel. In most cases, the IRS will first issue multiple notices and attempt collection efforts before passport certification occurs.

The good news is that taxpayers who are actively working with the IRS may avoid certification. Resolution options can include:


If the IRS certifies a taxpayer’s debt, it generally issues Notice CP508C. Certification can often be reversed once the taxpayer resolves the balance or enters into an approved payment arrangement.

The longer tax debt goes unresolved, the more penalties and interest continue to grow — and the more aggressive IRS collection actions may become. Addressing the issue early is often the best way to protect your options and avoid unnecessary complications.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC Tel: (949) 397-2292 (Newport Beach Office) Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.
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Tax Trouble: The Meter Is Running

Every mile on your vehicle’s odometer tells a story — where you’ve been, how far you’ve traveled, and sometimes how long you’ve avoided maintenance. The same can be said for unresolved tax problems.

In honor of National Odometer Day, it’s a good reminder that tax issues rarely stay parked. Penalties, interest, and enforcement activity continue to add up over time, and the longer a taxpayer waits to address the issue, the more difficult and expensive it can become.

Tax Debt Doesn’t Stay Still

One of the most common misconceptions taxpayers have is that if they ignore IRS or California Franchise Tax Board notices long enough, the issue may simply go away. Unfortunately, that is rarely the case.

Instead, unresolved balances can quickly grow due to:


Like putting thousands of miles on a vehicle without maintenance, delaying action on a tax matter often leads to much larger problems down the road.

The IRS Is Increasing Collection Activity

Over the past year, the IRS has continued ramping up collection efforts after several years of slower enforcement activity. Taxpayers are once again seeing increased notices, collection letters, and enforcement actions involving both individual and business tax liabilities.

California taxing agencies, including the FTB and CDTFA, have also remained aggressive in pursuing unpaid balances and delinquent filings.

For business owners, payroll tax problems can become particularly serious because the IRS often treats unpaid payroll taxes more aggressively than other tax liabilities.

Early Action Creates More Options

The sooner a taxpayer addresses a tax problem, the more resolution options may be available. Depending on the circumstances, those options can include:

Waiting until levies or garnishments begin often limits flexibility and increases financial pressure.

Don’t Wait Until the Warning Lights Come On

Just like a vehicle’s warning lights, IRS and state tax notices should never be ignored. What may begin as a relatively manageable issue can become significantly more complicated over time.

If you have received notices from the IRS, FTB, CDTFA, or another taxing authority, addressing the matter early can make a substantial difference in the available resolution options and overall outcome.

At Wilson Tax Law Group, we assist individuals and businesses with resolving complex federal and California tax controversies, including audits, collections, appeals, and litigation matters.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC Tel: (949) 397-2292 (Newport Beach Office) Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.

 
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Payroll Tax Problems: Why the IRS Treats Them More Aggressively

Not all tax debt is treated the same by the IRS.

While many taxpayers assume unpaid taxes can be resolved over time through standard collection procedures, payroll tax liabilities are handled very differently—and far more aggressively.

For business owners, this distinction is critical. Payroll tax issues can escalate quickly and, in many cases, lead to personal liability, even if the business is structured as a corporation or LLC.

What Are Payroll Taxes?

Payroll taxes are amounts withheld from employees’ wages, including:


  • Federal income tax withholding

  • Social Security and Medicare taxes


Employers are required to hold these funds in trust for the government and remit them to the IRS.

Because these funds are collected from employees—not earned by the business—the IRS views failure to remit payroll taxes as a serious compliance issue.

Why the IRS Treats Payroll Taxes Differently

Unlike income tax liabilities, payroll taxes involve trust fund money.

From the IRS’s perspective, this is not simply unpaid tax—it is money that was collected on behalf of the government and not turned over.

As a result, payroll tax cases are often prioritized for enforcement and may be assigned to a Revenue Officer much earlier in the process.

The Trust Fund Recovery Penalty (TFRP)

One of the most significant risks in payroll tax cases is the Trust Fund Recovery Penalty (TFRP).

This allows the IRS to assess a penalty personally against individuals who are:

  • Responsible for collecting and paying payroll taxes, and

  • Willful in failing to do so


This means that even if your business is a corporation or LLC, the IRS can pursue:

  • Owners

  • Officers

  • Directors

  • In some cases, employees or third parties with financial control


Once assessed, the TFRP becomes a personal liability, separate from the business.

How Payroll Tax Issues Escalate

Payroll tax cases tend to move quickly. Common escalation steps include:

In more severe cases, the IRS may take action that directly impacts business operations.

The Risk of Waiting

One of the most common mistakes business owners make is waiting to address payroll tax issues.

Delays can lead to:

  • Expansion of liability across multiple quarters

  • Increased penalties and interest

  • Broader exposure to personal assessment

  • Reduced flexibility in resolving the matter


By the time enforcement begins, options may be more limited and more costly.

What You Should Do

If your business has payroll tax exposure, early action is critical.

You should:

  • Identify the full scope of the liability

  • Ensure all required returns are filed

  • Evaluate potential personal exposure

  • Develop a strategy before engaging with the IRS


These cases require careful handling—particularly where multiple individuals may be involved.

How We Help

At Wilson Tax Law Group, we represent business owners and individuals in complex payroll tax matters, including Trust Fund Recovery Penalty investigations and IRS enforcement actions.

Our approach focuses on:

  • Assessing exposure and identifying responsible parties

  • Managing communications with the IRS

  • Developing a strategy to limit liability and resolve the case

  • Protecting clients from unnecessary or premature enforcement


Take the Next Step

If you are dealing with payroll tax issues—or believe you may have exposure—it is important to act before the situation escalates.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC Tel: (949) 397-2292 (Newport Beach Office) Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.
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The Kwong Decision: A Reminder That IRS Authority Has Limits

Recent case law, including the Kwong decision, reinforces a point the IRS often prefers taxpayers overlook: its authority is broad—but not unlimited. When the IRS fails to follow its own procedures, its position becomes vulnerable.

This is not a technicality. It is leverage.

What the Kwong Decision Reinforces

At its core, Kwong underscores that the IRS must strictly comply with statutory and procedural requirements when taking enforcement action. Courts are increasingly willing to scrutinize whether the IRS has done so.

For taxpayers, this matters because procedural defects can materially impact the validity of IRS actions—including assessments and collections.

Where This Comes Up in Practice


When the IRS cuts corners in any of these phases, it creates opportunity.

The Strategic Takeaway

  • Procedural compliance is not optional for the IRS

  • Defective notices and missteps can be challenged

  • Courts will intervene where due process is compromised


In other words, the government does not get the benefit of the doubt when it fails to follow the rules.

What This Means for Your Case

If you are facing an audit or collection action, the question is not just whether the IRS is substantively correct—it is whether they got there correctly.

  • Whether notices were properly issued

  • Whether deadlines and response rights were honored

  • Whether enforcement actions were legally supported


These are not side issues. They are often the difference between a defensible case and a losing one.

Practical Next Steps

  • Do not assume the IRS is procedurally correct

  • Do not ignore notices—even defective ones require a response

  • Have counsel review the record early for procedural defects

  • Preserve all communications and documentation


Bottom Line

The Kwong decision reinforces what experienced tax counsel already knows: the IRS’s power is conditioned on compliance with the law.

When that compliance breaks down, so does their position.

If you are facing IRS enforcement or need a second look at your case strategy, Wilson Tax Law Group can evaluate both the substance and the procedure behind the IRS’s position. Please call or email Wilson Tax Law Group, APLC, to setup a consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC Tel: (949) 397-2292 (Newport Beach Office) Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.
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IRS “Dirty Dozen” Tax Scams to Watch in 2026

The IRS has released its annual “Dirty Dozen” list of tax scams, identifying the most common and dangerous schemes targeting taxpayers in 2026. These scams tend to increase during filing season, when deadlines create urgency and taxpayers are more likely to act quickly without verifying information.

This year, the IRS is reporting a significant rise in AI-driven scams, including phone calls where fraudsters impersonate IRS agents using spoofed caller IDs and, in some cases, voice-cloning technology. These callers often create a sense of urgency, demanding immediate payment or threatening enforcement action.

Email and text-based phishing schemes also remain widespread. These messages frequently include links to websites that appear legitimate but are designed to capture sensitive financial and personal information. Once obtained, this information may be used to file fraudulent tax returns or access IRS online accounts.

Another growing concern is the spread of misleading social media “tax advice.” Viral posts may encourage taxpayers to claim credits or deductions for which they are not eligible, often promising large refunds. While these strategies may appear attractive, they can result in audits, penalties, and potential civil or criminal exposure.

The IRS has also highlighted several additional schemes, including:


  • Fake charities that solicit donations and personal information

  • “Ghost” tax preparers who prepare returns but refuse to sign them

  • Fraudulent withholding and refund schemes

  • Identity theft, including unauthorized access to IRS accounts


Taxpayers should remain vigilant. The IRS does not initiate contact by email, text message, or social media, and it does not demand immediate payment through unconventional methods. Any communication that pressures immediate action or requests sensitive information should be treated with caution.

At Wilson Tax Law Group, we regularly assist individuals and businesses in addressing IRS issues, including matters involving fraudulent filings, improper tax positions, and identity theft.

If you believe you have been targeted by a tax scam or have concerns about a filing position, it is important to act promptly and seek qualified guidance.

If you have concerns about your tax situation or have received communication from the IRS, our office is here to help guide you through the process with clarity and confidence.

If you have any questions regarding your individual or businesses’ state and/or federal tax return(s)/tax liabilities or received a notice from the IRS, FTB, EDD, CDTFA or any other regulatory agency, please call or email Wilson Tax Law Group, APLC, to setup a consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC Tel: (949) 397-2292 (Newport Beach Office) Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.
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Received an IRS Notice? 5 Steps to Take Right Away

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