Advice on Negotiating with the IRS

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Advice Negotiating with the IRS
Advice onon Negotiating with             the IRS

                 only wants you to settle, no matter how much you owe. As rule, you should
       The IRS only wants you to settle, no matter how much you owe. As a a rule, you should
       The
determine if the        open     negotiation       settle    compromise. This is where the Offer
determine if the IRS is open to negotiation to settle on a compromise. This is where the Offer in
             comes in. Unfortunately, it's not that easy
Compromise comes in. Unfortunately, it's not that easy to solve your IRS problems.

             should           be poor to settle your IRS tax debt for pennies on the dollar because the
        You should actually be poor to settle your IRS tax debt for pennies on the dollar because the
       very effective at collecting the money that they are after. You should not earn enough
IRS is very effective at collecting the money that they are after. You should not earn enough money to
     off your debt, must not have any equity in the properties you have, and must not have assets
pay off your debt, must not have any equity in the properties you have, and must not have assets or
investments. Only                                                        circumstances will
investments. Only when the IRS completely realizes the plight of your circumstances will they feel that
                          the IRS completely realizes the plight of
accepting                                          the      clean
accepting a small amount of money and wiping the slate clean is more cost effective than going after
           a small amount of money and                                     cost
the       value of the assets that you do have and ending your IRS
the small value of the assets that you do have and ending your IRS problem.

          course,                           in Compromise, you simply cannot choose any
       Of course, when negotiating an Offer in Compromise, you simply cannot choose any amount on
back taxes that you wish to pay the IRS. What you can pay hypothetically will have        be properly
back taxes that you wish to pay the IRS. What you can pay hypothetically will have to be properly
determined         as                              you calculate       figure, you can use Forms
determined by you, as required by the IRS. To help you calculate this figure, you can use Forms 656
            by        required by the
and 433-A.

                   have submitted         offer and all of the needed paperwork and documentation, the
        Once you have submitted your offer and all of the needed paperwork and documentation, the
        Once
             process can finally begin. If the IRS agents don't like your first offer, they will send back
negotiation process can finally begin. If the IRS agents don't like your first offer, they will send it back
      a counter       which may be slightly higher, or the whole amount. You aren't at square one,
with a counter offer which may be slightly higher, or the whole amount. You aren't at square one,
          if they come back with the whole figure. This a negotiation, and there are various aspects
however, if they come back with the whole figure. This isis a negotiation, andthere are various aspects
   each meeting that may help or hurt you when trying to fix
to each meeting that may help or hurt you when trying to fix your IRS problem.

            an advantage, submitting an Offer Compromise will cease all IRS actions against
        As an advantage, submitting an Offer in Compromise will cease all IRS actions against you.
Until the acceptance or dismissal of your Offer                                actions will be
Until the acceptance or dismissal of your Offer in Compromise, all enforcement actions will be frozen.

                                                         in Compromise,        payment options will be
       However, even with the dismissal of your Offer in Compromise, other payment options will be
                  even with     dismissal of
                Rather             fully at one time, you may be able to set up an             payment
offered to you. Rather than paying fully at one time, you may be able to set up an installment payment
plan      make           payments and buy you time. Unfortunately, your back taxes will still accrue
plan to make minimal payments and buy you time. Unfortunately, your back taxes will still accrue
interest.                negotiate an installment plan, you'll wish to pay off the entire figure as soon as
interest. So even if you negotiate an installment plan, you'll wish to pay off the entire figure as soon as
          So even if
possible          dragging on your IRS issue.
possible to avoid dragging on your IRS issue.

                      that     statute of                    tax debt extends by the amount of time
       Keep in mind that the statute of limitations on your tax debt extends by the amount of time it
       Keep
requires come to a decision from the moment you begin the negotiating process by filing an Offer
requires to come to a decision from the moment you begin the negotiating process by filing an Offer in
Compromise. The statute of limitations will be extended by a year if the process takes a year for
Compromise. The statute of limitations will be extended by a year if the process takes a year for your
case to be dismissed.
case to be dismissed.

				
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