Just because you are in tax debt does not necessarily mean that you can’t make a negotiation with the IRS. The truth is you can always appeal and negotiate, and when the time comes for you to negotiate with them, there are a few important things to keep in mind.
When negotiating with the IRS, the following tips and guides must be kept in mind:
- It is best if you negotiate face-to-face rather than sending a letter or contacting them on the telephone. Arrange a personal meeting with the IRS representative.
- Be prepared for the meeting. Preparation means you need to know the facts of your case, the IRS regulations, Internal Revenue Code, the Manual of Internal Revenue, Internal Revenue Rulings and Procedures, Circular 230, and other pertinent details and ethical requirements.
- Make sure you have full control over the information you share with the IRS. If there is one fact about the IRS, it is the fact that they will get all your vital information and will find ways to use it against you. So you need to deal your cards wisely.
- Making concessions is okay, provided you get concessions in return.
- If the meeting with the IRS does not go as planned, you can always courteously terminate the meeting and request to reschedule the meeting.
- One rule of thumb when negotiating with the IRS is to maintain a good attitude at all times. Keep your cool because it will increase the chances of a good outcome.
When it comes to negotiating with the IRS, it is all about preparation. Do not overthink it, for it will just make the matter worse. Be truthful with the information you share with the IRS but don’t give them too much to avoid them using that information against you. You must make sure you have the upper hand.