Tax Resolution and "Negotiating with the IRS"

The radio ads and late night ads claim they will “negotiate” with the IRS for you. It is just NOT true. There are very few cases when the IRS will “negotiate” penalties or interest. 

Negotiating with the IRS is much like negotiating with the 800 pound Gorilla. You figure out what the Gorilla is going to do, and avoid it or otherwise deal with him… In 99 percent of all cases, there is no “negotiation.” What about “Pay pennies on the dollar.” Absolutely possible. I have done that many times. But it was by knowing under what circumstances the IRS will take pennies on the dollar, and assisting my client in meeting the requirements. It was not by “negotiating.” It was by knowing what the Gorilla required, and providing the information necessary to satisfy those requirements. 

So when will the IRS “negotiate”? Only when there is genuine doubt as to whether you owe the tax. When there is real, substantial doubt about whether the original taxes were owed at all. For instance, you were the Accountant in a company that did not hand over payroll taxes that were taken out of employee wages. You did not sign any checks, and you had no authority about what bills were paid. But you were the Accountant and all the officers have disappeared. 

The IRS may say you are liable for the taxes because you did the calculations and knew the taxes should be paid, and were not, and you were an Office of the company. In that case, you have good negotiation grounds. You know it was not your responsibility. Cases with genuine doubt are rare. So how do you get rid of those taxes? Pay, or outwait the IRS. It takes a long time, but there is something called the Statute of Limitations on taxes. But that is another story… Thanks for listening! 

Don Bell