When the IRS Comes Knocking: 7 Critical Missteps to Avoid Before Calling a Tax Attorney

IRS agent knocking on home door, call a tax attorney for help.

As a tax resolution law firm in Southern California, we know the moment a letter from the Internal Revenue Service (IRS) lands in the mailbox, stress goes through the roof. At this juncture, choosing to call a skilled tax attorney — rather than going it alone — can mean the difference between preserving your assets and facing long–term consequences. In this blog, we uncover 7 critical missteps taxpayers often make before hiring a tax lawyer, and how avoiding them can strengthen your position.

1. Ignoring the Notice (Thinking “It’ll Go Away”)

One of the most common and damaging mistakes is simply ignoring an IRS or state tax agency notice. Tax letters are not marketing materials — they signal action. Ignoring them can trigger penalties, interest, liens or levies. The moment you receive a notice, you should respond or engage a tax attorney promptly.

Why a tax lawyer matters: A tax attorney can analyze the notice, determine deadlines, rights and risks, and begin communication with the IRS on your behalf, which is crucial.

2. Trying DIY Without Understanding Your Rights

Many taxpayers believe they can handle it on their own because “it’s just a form” or “I owe, so I’ll just pay it.” But IRS notices often involve letters with coded language (e.g., CP 2000, CP 504) and serious consequences.

A tax attorney knows how to:

• Interpret IRS collection and audit notices

• Advise whether a payment plan, an Offer in Compromise, or other relief is available

• Protect your rights under audit or collection procedures

  
  

If you act without legal insight, you might agree to something that limits your options or leaves you worse off.

3. Making Payments Without Exploring Better Options

When taxpayers feel overwhelmed, they often pay something to the IRS or set up a hasty payment plan. But doing so prematurely can lock you into a sub-optimal agreement. For example:

• You may qualify for a lower monthly payment or better terms if you wait and negotiate

• Paying before reviewing your full tax picture might leave you without funds to defend more serious issues

  
  

A tax attorney helps you evaluate whether you’re eligible for relief programs (like an Offer in Compromise, Currently Not Collectible status, or penalty abatement) before locking in your payment.

4. Overlooking State Tax Agencies (California, etc.)

Many taxpayers focus only on the IRS, but if you live or do business in California, you may also face issues with the California Franchise Tax Board (FTB) or other state agencies. These agencies may coordinate or act independently, and mistakes with state tax obligations can compound IRS problems.

A tax attorney licensed in California can ensure you’re compliant on both the federal and state levels, and can coordinate representation where necessary.

5. Discussing the Matter in the Open (Social Media, Public, etc.)

When worried about tax problems, people often vent on social media, talk openly to coworkers, or guilt-share their situation. This can be risky. Tax agencies increasingly use data analytics and coordination across agencies, and anything you say publicly could be used against you.

Working with a tax attorney gives you attorney-client privilege protections (in many circumstances) and allows you to speak confidentially and strategically.

6. Failing to Collect All Relevant Financial Records and Correspondence

When you decide to call a tax attorney, you’ll need organized records: notices, correspondence, tax returns, bank statements, payment history, business ledgers (if applicable). Doing this after the attorney is engaged speeds up the process and improves outcomes.

If you wait, there’s a risk of lost documents, missing deadlines or gaps in your story — which the IRS may exploit.

7. Waiting Too Long — Letting Penalties, Interest and Liens Grow

Time is rarely your friend in tax resolution. Every day of inaction may bring:

• Accrued interest

• Additional penalties

• A tax lien filed against property

• Wage garnishment or bank levies

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By engaging a tax attorney quickly, you can often stall collection action, freeze the penalty clock, and negotiate more favorable terms.

Why Choose a Tax Attorney

If you’re in the Southern California area and facing tax problems, working with a knowledgeable tax attorney makes a big difference. Here’s why our firm stands out:

• We specialize in tax resolution and representation before the IRS and California state agencies

• We bring a lawyer’s perspective — which means legal advocacy, not just tax prep

• We act quickly to stop collection enforcement (levies, garnishments, liens)

• We create customized strategies: payment plans, Offers in Compromise, innocent spouse relief, penalty abatement

• We focus on clear communication, friendly service, and peace of mind during stressful times

  
  

If you’ve received an IRS or state tax notice, let’s talk before you take action on your own. Call us at 818.964.1829 for a free consultation. We’ll review the notice, clarify your options, and guide you toward the best path forward — with attorney-level protection and local Southern California service.