If the IRS has issued a penalty or determination against you, you may have the opportunity to negotiate a settlement and potentially reduce the burden of its decision. But negotiating with the IRS on your own may be challenging, especially if you do not have experience with tax law.
Hiring a tax attorney to represent you can help you approach the negotiation process more effectively. Learn the role of a tax attorney in IRS negotiations.
Before your tax attorney initiates a negotiation with the IRS, they will want to fully understand your situation and determine the goals of the negotiation. Often, IRS tax debt negotiations have an end goal of settling the tax debt for a lesser amount or applying one of the IRS’s tax debt relief programs to the account. However, these options have strict requirements, and if you do not meet them, your negotiations may not be effective.
Your attorney will determine whether you might be eligible for any of these back tax resolution strategies:
Once they have determined the goals of the negotiation, they can proceed with the next steps.
Effective IRS negotiations depend on providing evidence to support your case. This often involves presenting past tax documentation and other financial records to the IRS to show financial hardship or verify your eligibility for a settlement option.
Your tax attorney can help you organize your financial records and use them as evidence in your negotiations. They can review this documentation closely to look for leverage to use in negotiations.
Tax attorneys have experience negotiating with the IRS and know how to create a compelling case for their clients. After reviewing all of the details of your case, they can determine a persuasive way of presenting your position to the IRS and seeking your desired outcome. They can also compare your financial records with details from past tax court proceedings to show how your case warrants a similar outcome.
Tax attorneys understand the goals and capabilities of the IRS and use this knowledge to position your case effectively while maintaining realistic expectations.
IRS communications can feel intimidating. You don’t want to risk saying something that compromises your negotiations or inaccurately states your position. When communicating with the IRS, it helps to stay calm, be patient, and avoid volunteering extra information, but these steps can be challenging in the moment.
An experienced tax attorney can handle communications for you to avoid saying something that prompts additional investigation from the IRS. They can also help you understand when written communications are appropriate compared to phone calls.
When successful, IRS negotiations can save you a significant amount of money and stress. Hiring a tax attorney to represent you in negotiations is worth considering, especially if you do not have experience communicating with the IRS or knowledge of applicable tax laws.
Levy & Associates, Inc. provides tax relief representation, audit defense, and a range of other forms of assistance for taxpayers. We can help you understand your rights and options and explore negotiations with the IRS.
Contact us today at 800-829-5389 or fill out our contact form for a consultation.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.