IRS Coded Transcripts

IRS coded transcript: the keys to your case

The IRS employee’s intention toward you and how they perceive you is dependent upon the IRS Coded Transcripts.  These special machine coded transcripts represent the IRS system’s judgment of your level of non compliance.  The transcript will reveal whether the taxpayer’s history depicts a willing, cooperative and non recalcitrant behavior.

There are numerous codes on your transcript and must be analyzed to develop a tax strategy that will disprove what the codes automatically represent.  If these special transcripts codes designate you as an unwilling, uncooperative, recalcitrant taxpayer, then the IRS employee will be predisposed to make decisions in favor of assessing penalties that range from failure to pay, failure to file, negligence, civil fraud and fraud penalties.  This is applicable to the Examination, Collection and Appeals functions of the IRS.

The IRS system is unlike the criminal justice system.  In the criminal justice system, there is a presumption of innocence that the Government must overcome in order to have you adjudged guilty.  However, the IRS system works the opposite way – penalizing you first and forcing you to present your case to compel the IRS to implement your rights to a fair and an impartial hearing.  The Taxpayer Bill of Rights requires the IRS to give you a fair, speedy and an impartial hearing.  Our tax strategy compels the IRS to honor and implement your rights and protections under the Taxpayer Bill of Rights.  This prevents examinations, collections and appeals from assessing and collecting taxes, penalties and interests you may not owe.


Your coded transcript must be obtained from the IRS.  On many occasions IRS will refuse to give them to you and instead,will give you the ”Literal” transcript that leaves off many of the specialty codes needed in determining how the IRS sees you and the IRS’ intentions toward you.  When you look at your coded transcript, you will see why most tax professionals have a difficult time understanding and providing the appropriate strategy for your case.