Blog Post

The notices are piling up, and you’ve reached the place where you’re thinking the un-thinkable: it’s time to negotiate with the IRS. Don’t panic; sit down, take a deep breath, and read on. Whatever you are trying to resolve, the approaches listed here will help

The Oil Can is Mightier than the Sword.

Though you may be shaking in your boots, or angry as a hornet, don’t bring anguish or a bad attitude into the room with you. Put on a happy face, and pledge to keep a cooperative attitude. You will find that most IRS agents are ready to find a solution that benefits you both, so assume the best. If you run into a condescending, surly agent, ask the manager if you can work with someone else.

Solutions, Solutions, Solutions.

In addition to bringing spotless documentation, your job is to come with a solution prepared. And do yourself a favor – learn some of the IRS language. For example, ask for penalties to be ‘abated’ rather than ‘cancelled’; and get familiar with phrases like “reasonable cause”, “currently not collectible”, or “ordinary and necessary” business expenses etc.

Promises Promises.

Only promise what you can deliver. Don’t agree to pay more than you can afford – this is just setting yourself up for failure. Also remember that in addition to your negotiated settlement, you still need to pay this year’s taxes, so be reasonable. Practicing saying ‘no’ politely in many different ways, and keep those phrases at the ready!

Avoid the ‘Xerox-ballet’.

Get your papers in order. This means no papers spewing out of torn folders, no receipts tumbling to the floor at a crucial moment. Know what information you need to present, put it into category folders, and bring it in a nice tote. Now, that’s a great first impression.

Put a lid on it.

IRS agents are specialists in drawing out information. Be truthful, but keep your responses short, succinct and to the point. There’s no sense elaborating about your personal life – that may lead down the wrong road.

Scout’s Honor

Always tell the truth. Even ‘white lies’ will trip you up eventually, and will then cast doubt on everything you’ve said. Don’t hide assets, don’t try to cover things up. It’s not worth the worry, and if you’re caught you could end up in trouble that you can’t negotiate your way out of.

Be a seeker.

Come to them before they come at you. If you are in trouble, tell the IRS right away. Speaking up ahead of time may get you the extensions that you need – and by the way, the collection department notes in your file whenever you or your representative calls.

Get a grip.

Sit quietly in good humor. And stay seated – no rushing around the room, agitated, flinging your arms around. Above all don’t cry; the IRS does not appreciate drama. Remember that every agent writes down notes of how the interview went – you don’t want ‘hysterical’ to be at the top of the list for the next agent to see. If you feel out of your league or disrespected, end the interview and tell the IRS that you will be seeking representation and that you’ll get back to them soon.

Professional got your back?

Just filing your year-end taxes can be complicated enough! For complex tax issues where you need an educated opinion and guidance, seek a qualified tax professional. They have the knowledge and experience that can make a big difference in the outcome of your case.

For more information and assistance, contact Litchfield County tax attorney Martha Miller at 860-435-4666, or click on the menu above to explore our website.