Investors, expats, and domestic taxpayers frequently find themselves at odds with the Internal Revenue Service (IRS). Forgetting to file taxes, failing to report foreign income, or cashing in on stock options without realising the massive tax implications could all lead to this situation. Attempting to negotiate with the IRS is often a fruitful use of one’s time in all of these and many other situations. This article will help you understanding everything in detail.
How to Make a Deal with the IRS: A Primer
- To avoid trouble with the IRS, first make sure you’ve done your research. Before negotiating with the IRS, it’s usually a good idea to investigate any and all angles that might be relevant to your case.
- Talk to actual IRS employees, second. Meeting with an IRS agent in person is always preferable to communicating with the agency over the phone. In person presentations to IRS agents typically result in more sympathetic treatment of the taxpayer’s case.
- You should keep your cool and jot down some notes. Having one’s emotions under control is of utmost importance when interacting with the Internal Revenue Service (IRS). Asking questions and making sure to write down any answers is crucial, but keeping your cool is essential.
- The Internal Revenue Service is looking at things from a different angle than you are, so make a good first impression. Don’t forget that the IRS wants to meet with you because they need your help and, ultimately, because they want to collect money from you. Allowing a large amount of back taxes to accrue is not in anyone’s best interest, including the IRS’s.
- Wait for the IRS to come up with a workable solution and then number five. Be cautious about blindly accepting their first proposal. In the meantime, hold out for a strategy that meets your needs and the IRS’s.
- Sixth, ground yourself in reality. Focus on the negotiation itself rather than the outcome. Don’t get side tracked by anything other than taking notes, listening, and pressing the agent for information about the IRS’s stance.
This should be your primary objective rather than simply trying to solve the problem at hand.
