Financial Investing

Many fear the IRS more than death itself.  The IRS does wield an immense amount of power. If you have ever received a letter in the mail and you see the IRS as the sender it can be an overwhelming experience.  If you are delinquent in your taxes the IRS will come after you even for $20.  The are tenacious and unforgiving, they have the ability to place liens against your home and your bank account.  They can harass and intimidate you any way they choose.  Remember if you owe them money you are going to pay.  The IRS does not concern itself about what measure they will use to get their money.

Now that I have scarred the pants off you all is not lost.  If you find yourself in a situation with the IRS then you need the help of a IRS Tax attorney.  Many ex-IRS agents become attorneys after their career with the IRS.  These guys know the ins and outs of the IRS and the IRS code.  They know that the IRS is usually more than willing to negotiate a settlement.  The big thing is that usually the IRS would rather negotiate with an attorney than directly with you. Maybe its a backroom deal they have with the attorneys or perhaps they don’t want the general public that they are willing to make deals.

When looking for a professional to handle your case many law firms have websites and offer free consultation either in person, on the phone or in this age via the internet.  The good news (if there is any good news with the IRS) the more you owe the more the attorneys are interested and usually more interested the IRS is in making a deal.  However what you owe will not have a lot to do with what the final settlement might look like.  Other items will be taken into consideration most importantly your ability to pay the debt.  Your attorney will also look for mistakes on your tax returns as well as mistakes that the IRS might have made in their assessment of your account.  One thing if the IRS did make a mistake they usually more than willing to make it right.

Now when you deal with the IRS like any other government department things can move slowly.  It may take months or even years to settle.  This an area where you need to be very careful when hiring an attorney.  Make sure during your consultation that you ask how long this could take and if their fee is by the hour, a flat fee, or based on a percentage of what they save you.  This way you will know what way to go.  It may not make much since to pay an attorney $10000 in fees to settle a $20000 IRS claim.  So although this experience is no doubt going to be stressful having the right tax professional on your side will make less so.

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