Yet, it is often unavoidable, especially when paying taxes and conducting audits. Sometimes, negotiating with the IRS is required, especially if you are in tax debt.
We are here to help with that part, so keep reading below for three tips to help you successfully negotiate with the IRS.
1. Learn Their Logic
If you want to negotiate with the IRS, then you need to be on the same page.
While you may think you have reasonable solutions to your problems, the IRS is entirely governed by a higher power, the Internal Revenue Manual. This has every single scenario that could ever possibly occur, as well as the solution.
The IRS agent will follow this every single time, whether you agree with it or not.
Luckily, they also have scenarios of negotiation in the manual. You can read the manual yourself and become familiar with their logic, so you know what to expect and what will work when it comes time to negotiate.
2. Always File Your Return
If you want something to go your way with the IRS, you also need to do your part. No matter if you can pay your taxes or not, you should always file your return.
This can reduce penalties from accruing, such as the failure-to-file penalty. It can also show your character to the IRS, displaying that you are doing what you can and are trying to submit everything as timely as possible.
This may give you leverage as you try to negotiate things to go your way.
3. Hire a Lawyer
If you have tax debt, it’s wise to hire a lawyer that knows the ins and out of tax law. You may not be familiar with the Fresh Start initiative or the various programs for paying taxes that may be available to you, but your lawyer will be.
This will also allow you to avoid having to read the Internal Revenue Manual, which is a gift in itself.
However, it’s critical that you vet the tax lawyer that you choose to go with. There are many firms set up to scam you from your money, so be wary.
Interview two to three lawyers. Check out each website, homepage, and customer reviews, and make sure IRS tax controversy and collection are their specialties.
Use These Tips When Negotiating With the IRS
If you find yourself in a position that requires negotiating with the IRS, you may feel a bit overwhelmed.
Just remember that there are options available to you, and you can always ask for help. Be confident, and do your research so you can stay a step ahead.
If you’d like to take a break from thinking about taxes, check out our collection of lifestyle articles!