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Tax Resolution Services by Darby Smith

At Darby Smith Law Office, we specialize in tax resolution with a focus on two primary areas:

Examination (Audit Representation)

The Examination process, commonly known as an “audit,” involves the IRS reviewing specific items on your tax return, such as income or deductions, to ensure accuracy.

Collections (Debt Resolution)

The Collections process focuses on resolving or settling confirmed tax debts, assuming the accuracy of your tax return.

Additional Services

Tax Return Preparation

While we assist clients with various types of tax returns, please note:

• We generally do not prepare: corporate income tax returns, payroll tax returns, or sales tax returns. These are better handled by a CPA.
• We do not offer bookkeeping services.

Fee Structure

We offer a hybrid fee agreement, combining hourly and flat fee structures:

• Base Flat Fee: Covers a defined scope of services.
• Optional Add-ons: Available for additional, specialized services that may arise.

Areas of Representation

We provide tax representation across Federal, State, and Local tax authorities for both individuals and businesses. Our services cover a wide range of tax types, including:

• Income Tax
• Sales Tax
• Payroll Tax
• Estate Tax
• Excise Tax
• Trust Fund Penalties
• “Responsible Person” Liabilities

The Three Phases of Collections

1. Assessment

In the Assessment phase, we review and analyze your tax situation, focusing on:

• Your tax records, including account, return transcripts, and income documentation.
• Identifying filed and overdue tax years, and any substitute returns issued by the IRS.
• Calculating total debt, breaking it down into principal tax, interest, and penalties.
• Evaluating eligibility for penalty reductions.

2. Compliance

The Compliance phase is crucial for resolving tax issues, ensuring that all filings are up-to-date and accurate. This includes:

• Preparing and submitting overdue tax returns.
• Handling federal forms like IRS Form 1040, state forms like Kentucky Form 740, and local forms like Louisville Metro Form OL-3.
• Ensuring full compliance with all federal, state, and local tax obligations.

3. Resolution

The Resolution phase is where we develop a strategic plan to address and settle your tax debt, tailored to your financial capabilities. This involves:

• Conducting a comprehensive financial analysis, including assets, liabilities, income, and expenses.
• Determining the most suitable tax resolution plan, such as an installment agreement or an offer in compromise.

Our goal is to provide a solution that is not only effective for your immediate tax issue but also sustainable in the long term, ensuring a manageable resolution that fits your financial situation.