Tax relief negotiation includes working out agreements for taxes owed and clearing up mistakes made by the IRS. Unfortunately, it can be difficult proving the IRS made a mistake, because they're stubborn to the end. The IRS negotiates from the standpoint that they are right and you are wrong and that there is no common ground.
Crossroads
Tax relief negotiation is about finding a point of reconciliation between you and the IRS. When you owe back taxes, life can get very difficult once the tax collection process begins. The automated IRS collection system alone is a nightmare producing letter after letter with no abatement.
Once the letters stop, the notice of lien usually appears in your mailbox next. Unless you act quickly, the following steps will include levies and seizures. It's a distressing situation that can be very frightening. The old story of David and Goliath comes to mind.
Tax relief negotiation in the case of back taxes can take many different routes. In many cases, a simple installment agreement can make life much nicer. In some cases, the negotiation process may be more intense in that other forms of tax relief are sought.
These other forms of tax relief include making an "Offer In Compromise," filing bankruptcy or getting a levy or lien released so you can borrow money. An expert tax negotiator will pursue all avenues of resolution with the IRS while always keeping your best interests as the focus.
At the crossroads, tax relief is found. When the IRS agrees to a payment plan or resolution of another kind, the collection letters stop.
Wrong Turns
Of course, the IRS can make a mistake too. You have to prove they made a mistake which means you need tax relief negotiation in this case also. Some of the mistakes the IRS makes include:
* Lost tax returns
* Payments posted incorrectly
* Computer errors
* Lost business tax forms
In this case tax relief negotiation is about getting the error corrected so that your account balance is correct. Naturally, the IRS doesn't like to admit when it makes a mistake which is why a tax representative is highly recommended. Just like during the tax collection process, the IRS always approaches initial discussions about taxes owed from the viewpoint that they are right and you are wrong so pay up!
When you have any kind of tax account problem, you need to make sure you have the best representation possible. Experience negotiating with the IRS really does make a difference in the outcome. You don't have to face the IRS alone, and you don't have to pay taxes that are not calculated correctly.
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William McConnaughy, CPA is a tax negotiation professional. He has experience working with people seeking tax relief and credit repair. For more information visit his tax relief website.
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Article added to SearchWarp.com on Wednesday, August 20, 2008 View other articles written by William McConnaughy(60)
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