IRS Negotiation Blog Weekly Wrap-up
Another busy week. I attended a networking lunch this week and the speaker’s topic was "How to Legally Beat the IRS." Now the speaker was a "former CPA" and has done a lot of tax work in the past. His advice was to small business owners and his point was to illustrate to them how much money they may be leaving on the table each year to pay the IRS in income taxes (or the dreaded self-employment tax) when they could be writing more off in expenses and keeping more money in their pocket.
Now, I was inspired to try to save myself money, however I noticed that some of the "tactics" are what get a lot of my clients in trouble so I would not go forward with some of them without the assistance of a good CPA. I would definitely recommend that all business owners contact a CPA and get their help and advise on tax planning within their business. Make sure the CPA advises you and does not just perform a "fill out the correct forms" function. The main objective of these meetings with your CPA is so that you properly plan for your business so you can succeed. Most of the time it is when people fail to plan that they fall out of compliance and when they need our help.
Now on to the review of this blog. Monday we hit on a related topic. It was about some common "tax goofs" that cause people to miss the mark and get into trouble with the IRS. Some of the goofs are pretty funny, and you wouldn’t expect them to ever be done in real life, but others are far too common and could be pre-empted if the taxpayers got better advice.
We also talked about trying to negotation what the IRS believes is TheIRS. I guess you will have to go to that post to really get what that means.
Wednesday, we hit the basics again to discuss what is Currently Not Collectable Status (or uncollectable status). This is a great place to be in if you can get the IRS to see things from your perspective and if you don’t have the money to file an offer in compromise. I would generally recommend an offer in compromise over currently not collectable status because if the offer in compromise is accepted, you are done with the IRS, however when you are in uncollectable status, the IRS will come back and revisit your financial status about annually to see if you should remain in uncollectable status or to see if your financial status has changed that would allow you to begin making payments to the IRS on your tax liability.
Finally, on Thursday we looked into another common mistake people make when filing their income taxes. They file an extension and believe that is also an extension of time to pay. Read on to see what’s wrong with this picture and another side to this story.
Stay tuned next week to find out more about negotiating with the IRS and your options in settling your outstanding tax debt. If you have run into some trouble with the IRS and need help, please use our contact form and let us know a little about your situation and we will contact you about how we can help and what your fee may be for the representation. If you are interested in filing your own offer in compromise, I would invite you to fill out a short survey that will help us in determining the exact format and type of product you would like to see. Everyone who helps with the survey will get a great discount on the final product just by entering their e-mail address.
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