Advice on Negotiating With the IRS
It doesn't matter how much you owe the IRS; they just need you to settle.
As a rule, you need to determine if the IRS is open to negotiation to settle on a compromise.
The Offer in Compromise comes in in this case.
Unfortunately, it is not that easy to solve your IRS problems.
To be able to take advantage of an Offer in Compromise, you should not own properties, not make enough money to settle your debt, and not have any investments.
For the IRS to realize that it is more cost effective to accept the small figure you can provide rather than going after what little you have, you should be poor.
So when you file your Offer in Compromise to the IRS, how do you decide what you should offer? What will help you succeed in lowering your back taxes? What number you must pay back is something you cannot simply guess.
Also, don't even consider just choosing to settle a particular percentage of your total debt amount.
What the IRS will make you do is determine how much you likely are able to pay.
There are two IRS worksheets, Form 433-A and Form 656, that can help you determine this figure.
The process of negotiation can truly start once you've filed your offer and the required paperwork.
If the IRS agents do not like your first offer, they will send it back with a counter offer which could be slightly higher, or the full amount.
But even if they come back with the full figure, you are not at square one.
This is a negotiation, and there are many factors to every meeting that may help or hurt you when trying to resolve your IRS problem.
One of the benefits of filing an Offer in Compromise to the IRS is that, in numerous situations, they'll cease their present actions against you.
Until your Offer in Compromise has either been dismissed or accepted, efforts like garnishing your wages will be generally frozen.
However, even if your Offer in Compromise is dismissed, it may open the door to other payment methods.
Instead of settling fully at one time, you may be able to set up an installment payment plan to make lesser payments and buy you time.
Unfortunately, your back taxes will still accrue interest.
So even if you negotiate an installment plan, you'll want to settle the whole figure as soon as possible to avoid prolonging your IRS issue.
Keep in mind that the statute of limitations on your tax debt extends by the amount of time it requires to come to a decision from the moment you begin the negotiating process by filing an Offer in Compromise.
So if the process requires a year for your case to be dismissed, the statute of limitations will be extended by a year.
As a rule, you need to determine if the IRS is open to negotiation to settle on a compromise.
The Offer in Compromise comes in in this case.
Unfortunately, it is not that easy to solve your IRS problems.
To be able to take advantage of an Offer in Compromise, you should not own properties, not make enough money to settle your debt, and not have any investments.
For the IRS to realize that it is more cost effective to accept the small figure you can provide rather than going after what little you have, you should be poor.
So when you file your Offer in Compromise to the IRS, how do you decide what you should offer? What will help you succeed in lowering your back taxes? What number you must pay back is something you cannot simply guess.
Also, don't even consider just choosing to settle a particular percentage of your total debt amount.
What the IRS will make you do is determine how much you likely are able to pay.
There are two IRS worksheets, Form 433-A and Form 656, that can help you determine this figure.
The process of negotiation can truly start once you've filed your offer and the required paperwork.
If the IRS agents do not like your first offer, they will send it back with a counter offer which could be slightly higher, or the full amount.
But even if they come back with the full figure, you are not at square one.
This is a negotiation, and there are many factors to every meeting that may help or hurt you when trying to resolve your IRS problem.
One of the benefits of filing an Offer in Compromise to the IRS is that, in numerous situations, they'll cease their present actions against you.
Until your Offer in Compromise has either been dismissed or accepted, efforts like garnishing your wages will be generally frozen.
However, even if your Offer in Compromise is dismissed, it may open the door to other payment methods.
Instead of settling fully at one time, you may be able to set up an installment payment plan to make lesser payments and buy you time.
Unfortunately, your back taxes will still accrue interest.
So even if you negotiate an installment plan, you'll want to settle the whole figure as soon as possible to avoid prolonging your IRS issue.
Keep in mind that the statute of limitations on your tax debt extends by the amount of time it requires to come to a decision from the moment you begin the negotiating process by filing an Offer in Compromise.
So if the process requires a year for your case to be dismissed, the statute of limitations will be extended by a year.