There's the version of tax resolution the late-night commercials sell you. Then there's how it actually works. I'm Darrin Mish, a Tampa tax attorney. I've spent 32 years on the inside of these cases. Here's the real version.
Negotiating with an IRS representative can either be a pleasant or absolutely harrowing experience. What happens depends a lot on you and your attitude towards the IRS. While there is no sure fire way to negotiate with IRS representatives, there are a few important things that you will want to remember that will make the entire experience more pleasant than painful. Click here to read or watch more IRS Help resources.
Rest assured you will not immediately be penalized for your tax debt. The IRS will give you the benefit of the doubt at least initially. However, this benefit of the doubt will only last so long. What you need to do is not take their leniency for granted and respond immediately to the IRS’ efforts in communicating with you. A speedy response will always indicate that you are serious about wanting to get out from under the burden of your tax debt. Prompt responses from you means that you treat the IRS with respect and by doing so you stand a much better chance of receiving the same treatment in return.
If your tax debt is the result of misrepresenting your tax figures in the past, then you have two choices: Keep up the lie that got you into this mess or come clean on your tax returns. You must bear in mind that the IRS representatives are professionals who study zillions of tax returns every year. They have seen every cheat in the book and they have heard every line. Forget about trying to game the system with them, even though you may be a smooth talker. Honesty is the best policy.
Most IRS representatives are just like yourself, those who consider this their job and who do not want a confrontation. So be courteous, polite and diplomatic in your discussionsand they will have one less reason to throw the book at you. Don’t be demanding, rude or condescending because that will only make things worse. And whatever you do, do not try to bribe them, either.
In your negotiations with the IRS, don’t expect results beyond what is reasonable to attain. Even an IRS agent has limited powers when it comes to what you owe and are legally obligated to pay. They can’t make thousands of dollars in debt simply disappear. The best you can receive would be that your original amount of tax debt is reinstated to you.
By having these correct attitudes and expectations in your negotiations with the IRS, you will very likely have a pleasant experience with them.