Legacy Law Blog

When it comes to managing your finances or running a business, staying compliant with IRS regulations is crucial. However, the IRS can issue notices, adjust a tax year or initiate an audit for a taxpayer who has had little or no issues with the IRS in the past.

When the IRS makes contact, it can often be very difficult for the average taxpayer to know when or what to do next. That’s where an IRS monitoring service becomes invaluable.

What Is an IRS Monitoring Service?

An IRS monitoring service is a proactive solution that keeps a watchful eye on your IRS transcript. These services review your IRS transcript to find any unusual account activity, pending audit notation or the underreporting of income.

If these items are found on the transcript, the monitoring service will alert you to any changes or potential issues as soon as they arise. A monitoring service will allow you to address these issues immediately rather than waiting for a letter in the mail—often within days of IRS activity.

This can lead to greatly reduced penalties and interest, reduced audit times and the ability to proactively file or correct tax returns.

How Does IRS Monitoring Work?

• Automated Transcript Monitoring: The service regularly checks your IRS account transcripts for updates, such as new notices, balance changes or audit flags.
• Lien & Levy Detection: Identification of IRS liens and levies on your transcript.
• First Time Abatement Opportunities: Identifies opportunities for First Time Abatement back to 2001, potentially resulting in additional refunds or tax offsets.
• Audit Risk Assessment: An audit risk assessment for the current tax return can provide early detection of a possible future audit before it occurs.
• Income Verification: The service will provide annual verification of income as reported to the IRS.
• Payment Tracking: Your transcript will be reviewed to track any IRS payments, including estimated payments and credits or refunds.
• Immediate Alerts: You receive notifications about any IRS activity, allowing you to respond quickly.
• Professional Analysis: Tax practitioners review the alerts to determine their significance and recommend next steps.

The 6 Benefits of Hiring a Firm for Monthly IRS Monitoring

1. Early Detection of IRS Issues

A monitoring service can alert you to problems before you even receive a notice from the IRS. This early warning system gives you more time to address issues, reducing stress and potential penalties.

2. Professional Interpretation

IRS notices and transcripts can be confusing. A firm specializing in IRS monitoring can interpret these documents, explain their implications and guide you on the appropriate response.

3. Reduced Risk of Penalties

By catching discrepancies or missed filings early, a monitoring firm helps you avoid costly penalties and interest charges. They can also help you correct errors before they escalate.

4. Peace of Mind

Knowing that professionals are watching your IRS transcript allows you to focus on your business or personal life, confident that you won’t be blindsided by unexpected IRS actions.

5. Streamlined Communication

A firm can handle IRS correspondence on your behalf, ensuring timely responses and reducing the risk of miscommunication.

6. Immediate Correction of Issues

Many firms that provide IRS monitoring also provide tax resolution services. Taxpayers who retain these firms are better able to see and react to any pending issues with the IRS, often before these issues have a chance to become much bigger problems.

Who Should Consider IRS Monitoring?

• Small Business Owners: With complex tax obligations, businesses are more likely to be flagged for review.
• Individuals with Past IRS Issues: If you’ve previously had tax problems, ongoing monitoring is especially important.
• Anyone Seeking Peace of Mind: Proactive monitoring benefits anyone who wants to avoid surprises from the IRS.

An IRS monitoring service, like the one offered by Plunkett Cooney, is a smart investment for anyone who wants to stay ahead of potential tax issues. By hiring a professional firm to provide monthly oversight, you gain early alerts, expert guidance and the peace of mind that your IRS account is being managed proactively.

This level of vigilance can save you time, money and unnecessary stress—making it a valuable addition to your financial toolkit.