Negotiating with the IRS: Tips for Resolving Back Taxes

Negotiating with the IRS: Tips for Resolving Back Taxes When negotiating with the IRS over back taxes owed, preparation is key. It's important to have a clear understanding of the process involved and the steps required to reach a successful resolution on the amount of back taxes owed. This guide will provide you with the essential information needed to navigate this challenging process of negotiating irs back taxes owed.

Understanding the Types of Back Taxes

Unpaid Taxes

Penalties and Interest

Back taxes can result from unpaid federal or

It's crucial to understand the implications of

state income taxes, payroll taxes, or other

penalties and accrued interest on

types of taxes.

outstanding tax liabilities.

Gathering Necessary Documentation Income Statements

Tax Returns

Collect all income statements,

Gather all filed tax returns for the

including W-2 and 1099 forms, to

years in question to assess the

provide a comprehensive view of

accuracy of previously reported

your earnings.

information.

Financial Statements Compile financial statements, such as bank statements and investment account records, to demonstrate your financial position.

Developing a Negotiation Strategy

1

Clear Objectives Establish clear

2

Evidence-Based Arguments

3

Professional Guidance

objectives for the

Support your position

Consider seeking

negotiation process,

with factual evidence

professional guidance

including desired

and legal

from tax professionals

outcomes and

considerations to

or legal advisors to

acceptable

strengthen your

develop an effective

compromises.

negotiation stance.

strategy.

Initiating Contact with the IRS Written Communication

Phone Inquiries

Consider initiating contact through a formal written communication, such as a letter addressing your intent to resolve back taxes.

If preferred, you may initiate contact through a phone call to schedule an initial discussion with an IRS representative.

Negotiating a Payment Plan or Settlement

1

2

Payment Plans

Offer in Compromise

Explore the option of structured payment

Consider submitting an offer in compromise

plans that allow for gradual settlement of tax

to settle the tax debt for less than the full

liabilities over time.

amount owed.

Tips for Successful Negotiation with the IRS 1

Clarity and Transparency Communicate with clarity and transparency while providing accurate and comprehensive information to the IRS.

2

Patience and Persistence Exercise patience and persistence throughout the negotiation process, as it may require multiple interactions.

3

Professional Representation Consider engaging the services of a tax professional or attorney experienced in IRS negotiations for valuable guidance.

Thank You! Tax Law Center info@irsproblems.com 801-895-3022