There are several advantages to hiring a taxpayer resolution specialist. Foremost, when you contract the services of others, you no longer need to deal with the IRS. You’ll no longer receive the telephone calls and demanding letters for payment which will be now be directed to your accountants. Let the accountants have to deal with the IRS, not you!
Second, paid taxpayer resolution specialists will sometimes find errors or omissions from your prior tax returns that may be corrected and reduce the taxes you owe. Sometimes, the penalties are incorrectly calculated or may not even apply. And sometimes, your tax resolution specialist can sometimes help you to obtain relief from the penalties you owe, reducing your tax debt further.
Third, a paid taxpayer resolution specialist will explore other tax settlement options you may have such as a delayed payment arrangement or the settlement of taxes owed for less than you owe. A negotiated installment agreement may not always be your best option.
Fourth, taxpayer resolution specialists know the tax law and IRS procedures and will help get you the lowest monthly payment amount with the lowest down payment and the longest terms in which the payments can be made. Even if you have the best intentions to pay down your tax debt as fast as possible, why would you commit to this if you don’t have to? You can always pay off the tax debt early if you want. But commit to a fixed amount every month and miss your payment, you can lose your rights and be obligated to a greater payment amount.
Fifth, its not that costly! Most tax payment agreements can be negotiated between $375 and $1,250 for wage earners. Self-employed individuals, employers and taxpayers with large tax debts can be more.
Dealing with the IRS is not a matter of how good you are at negotiations – it is a matter of how well you know IRS collection procedures and protecting your rights as a taxpayer. This is a common mistake made by individuals who attempt to negotiate with the IRS on their own behalf. Do-it-yourself persons often pay way too much, way too fast, when they don’t necessarily have to.
Do-it-yourself taxpayers often watch the TV commercials that promise to settle IRS debt for “pennies on the dollar” and mistakenly think this is a common thing to do. It is not! IRS Tax Settlements are only used in the most limited circumstances. Sometimes, it’s the right thing to do. Other times, its not.
There are many common mistakes that do-it-yourself taxpayers have many obstacles to overcome.
Settling tax debt with the IRS is one of privilege. It is not your right. Your rights as a taxpayer are clearly defined by law. You need to know what the IRS can and can not do and work within those guidelines. Not having the knowledge or experience to settle these matters in your favor can be disastrous.
Remember, the ultimate goal of the IRS tax collector is to get you to pay your taxes as quickly as possible. Your ultimate goal is to pay as little as legally possible. The IRS has powerful collection rights not available to any other creditors you may owe. They can levy your bank accounts, garnish your wages and even seize your property to satisfy your tax debt. Stopping these types of collection actions often requires professional intervention and your willingness to satisfy your tax debt.