Negotiating With the IRS to Work Out Tax Settlements

More and more, taxpayers are receiving various notices from the IRS involving audits, collections, and having their passports revoked. You or someone you know may find yourself in one of these situations. This is becoming more likely as the IRS increases collections and enforcement efforts. The IRS is serious seeking to collect the huge tax gap.

Many can't pay their tax debt in full now. Working out difficult situations with the IRS can be done but it is best to do this with someone who knows how to talk to the IRS and how the IRS works to settle tax debts. I represent U.S. taxpayers located all over the world to work out arrangements for their tax debts. Let me give you an example.

A woman contacted me about her tax situation. Her husband had recently become incapacitated due to a stroke and she could not find any tax returns that he had filed and she was worried. To begin with we got transcripts from the IRS that showed he had not filed their returns in years. So we had to prepare years of tax returns but there proved to be a real challenge, she could not find any information needed to do the tax returns.

Really, no information? Yes. Before we got into that she explained to me her situation with her husband's condition and her finances. She was limited as to what she could earn and she had to take care of her husband. She had a job but it didn't pay much. In addition they did not have much in the way of investments to draw on. So knowing that we devised a plan to file the back tax returns and then work something out with the IRS.

First, I got IRS transcripts showing what income was reported to the IRS and then I used the last filed return as a guide to figure out schedule C business expenses. In this case it didn't really matter that the tax returns showed a lot of income because she had no way to pay them.

Then a deal was worked out with the IRS for her to pay a really small affordable amount per month. That would continue and the IRS would revisit her situation but barring some life changing event she would continue to pay the small monthly amount until the time ran out for the IRS to collect what she owed and then it would be over.

She was so relieved.

I have helped clients to get into compliance with filing tax returns and also to represent them before the IRS to negotiate a plan to settle their tax debts including requesting an Offer-In-Compromise, Installment Agreements, and uncollectible account status.

If you or someone you know who is in a similar situation, contact me using my information below to setup an appointment to discuss your situation and let's take care of this.

The CPA Superhero


Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

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