Introduction:
Many taxpayers try to handle IRS negotiations on their own. While the IRS offers programs like installment agreements and Offers in Compromise, mistakes can cost you thousands of dollars.
Mistake #1:
Ignoring IRS Deadlines. Missing deadlines can:
- Trigger IRS wage garnishment or bank levies.
- Increase penalties and interest.
- Eliminate your right to appeal.
Mistake #2:
Overpromising on Payment Plans. Agreeing to an IRS installment agreement you can’t afford often leads to default, putting you back at square one.
Mistake #3:
Failing to Document Financial Hardship. When applying for Currently Not Collectible status or an Offer in Compromise, the IRS requires detailed financial records. Without them, your request will be denied.
Conclusion:
Negotiating with the IRS isn’t about guesswork—it’s about strategy and documentation.
Let our firm handle your IRS negotiations. We know the IRS playbook and how to protect your financial future.
Disclaimer:
This post does not constitute legal advice and does not create an attorney-client relationship, it is merely a general discussion of points of the law and may not be complete or up to date. Please contact our office for a consultation to discuss how tax laws may be relevant to your specific situation.