When to Negotiate with the IRS
When the IRS makes contact with you, your instinct may be to stay away from any and all negotiations with them at all cost. Communication with the IRS can be intimidating but also absolutely necessary in some cases. There are certain instances in which communication is a must and ignoring the problem only makes it worse. Take a look at this list of information to see whether it might be in your best interest to negotiate with the IRS:
1. If you receive a letter from the IRS: If you have received written correspondence from the IRS, it is time to act and solve your tax problem. The written correspondence might seem benign and even routine at first, but if you have not made payment, filed a return or if the IRS has questions about your return, they will likely not give up. In fact, the correspondence typically gets progressively more intense and serious. So respond to the letters that you get, answer any and all questions that you are asked and pick up the phone and give them a call if you want to ask questions or convey information.
2. Back taxes: Often, when individuals complete their tax return and realize it is impossible to pay their debt in a lump sum, they opt not to pay at all. This is never the best plan. Instead, it is more helpful to file your taxes on time to reduce any penalties that you might receive and give yourself the ability to negotiate for a settlement. Two settlement options are an offer in compromise (paying the IRS less than the full amount owed based on what you can actually afford) and an installment agreement (paying your debt to the IRS in monthly payments rather than a lump sum). To give yourself the best chance for your negotiation, file your taxes on time.
3. Error in your return: If the IRS has contacted you with a question about your return or challenging the veracity of the information on your return, respond quickly and accurately. Always provide the exact information that is requested and in a timely manner. Letters from the IRS generally have a phone number on it, which can be called during normal business hours.
Take control of your tax problem
It is always best to get out ahead of your tax problem, rather than burying your head in the sand and wishing it away. Negotiating directly with the IRS is recommended in many instances. Negotiating can be difficult and stressful and it might be wise to team up with a full service tax relief company to help with this communication. Success Tax Relief has more than thirty years of experience working with clients all over the country. Our strength is negotiating with the IRS to come up with solutions that work for our clients. We can negotiate an installment agreement, an offer in compromise; we can also help combat wage garnishments and reduce stiff penalties. If you would like the confidence and peace of mind knowing that communication with the IRS is being handled with your best interest in mind, contact Success Tax Relief today.