Don’t Believe Everything You Hear About The IRS

Having resolved dozens and dozens of problems with the IRS, I can say with some authority that the agents representing the service are typically decent people who do care about the taxpayers’ rights and who try to apply the law evenly and fairly, most of the time. Yes, there are a few tough guys, wanting to extract everything they can who approach the taxpayer with disdain, and yes, these situations can digress rapidly and result in poor conclusions. However, thankfully, this happens only in the minority of cases, by far.

In fact, also unfortunately and inappropriately, many taxpayers and even their less experienced representatives believe that taking a defensive stance with the IRS, covering or misstating the facts, claiming innocence, using intimidation tactics and trying to negotiate a better deal will work. I’m here to tell you, it won’t. In fact, I believe that one of the reasons some agents react negatively to sincere attempts to work out difficult issues is because of the relentless beating the agents typically endure. Fewer taxpayers are respectful and knowledgable and more are resentful, taking their feelings out on the agents, resorting to begging, pleading, or demanding a better result.  Again, all bad methods.

So what is the answer? How does one “work it out” with the IRS, as all the TV ads say? The answer is in the code. As taxpayers, we have many rights. The “Taxpayer Bill of Rights” assures fair play and overview as well as a way to complain or appeal a decision you may not agree with.

There are many ways to effectively work out a tax debt. It requires an exact knowledge of what the code provides as alternative options to full compliance. It requires an experienced tax workout professional to understand your options and to apply the best plan for your situation. The code provides many options and if you stay within the code and work within its structure you can succeed in achieving wonderful results. It still requires imagination and well-implemented strategies, but in the end, if done properly, everything can work out well.

What about those TV personalities we see so frequently advertising their services? Can they do the job? Sometimes. Unfortunately, I have seen few successes by this route, although I am certain they do experience an occasional victory. The important point is that it is not an impossible task if you get the right representative. Check references, talk to satisfied clients, demand a fixed fee and refuse to work on an hourly basis, as such an agreement can be an annuity to the representative. Determine in advance what the plan will be and what the likely results will be. Any experienced tax workout specialist will provide you with these answers. The likely conclusion is not a secret and can be projected. Like anything, let the buyer beware, as there are few really exceptional experts. Find an expert and you are well on your way to experiencing a successful conclusion. And remember, it is more about the facts and less about a negotiation, although there is room to move but you need an experienced professional to lead you down the correct path.

Please, I invite any reader to write to me their fact pattern and I will gladly provide a possible strategy to resolve your issues. Call it a second (or first) opinion. There is usually a way.