Discussion:NEGOTIATING
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Discussion Forum Index --> Tax Questions --> NEGOTIATING
Penguin lover 99 (talk|edits) said: | 20 June 2007 |
| Hello!
I am seeking help from anyone who knows how the IRS works. I have a friend that makes $13 per hour. He does not have any sort of savings worth mentioning (probably a total of $2,000). He only owns a small truck with 300,000. He recently took care of filing his taxes from 2002-2006, as he had not previously filed. He was to receive a refund of $1.00. A letter was received stating his $1.00 was being applied to an outstanding balance from 1996. I told him to call the IRS and find out how much money he owes in total. After the phone call, it came back that he owes $24,000. I told him not to set up payment arrangements just yet, as I have heard you can negotiate with the IRS, if you owe $10,000 or more. Does anyone know if this is true, or how it can be done? If I file for Power of Attorney, am I able to negotiate on his behalf? Or do we really need to get a tax attorney involved? Any help or pointing me in the right direction would be greatly appreciated! | |
| 20 June 2007 | |
| Hey penguin, if you are not an Enrolled Agent, Attorney, or CPA, you are generally not allowed to "practice" before the IRS and negotiate on his behalf (with certain limited exceptions for family members, etc).
He needs professional help. Doing it wrong will cost him much more than doing it right. Send him to an EA, attorney, or CPA who handles tax problems. By the way, a taxpayer or his representative can negotiate anything. How successful he will be depends to a large degree on his experience and portraying the taxpayer in the correct light. That is why a professional who does this for a living is worth his fee. | |
Death&Taxes (talk|edits) said: | 20 June 2007 |
| A good Enrolled Agent or CPA who specializes in representation can do the job, and probably more reasonably. This is an area you should not attempt. The frustration level is so high. | |
| 20 June 2007 | |
| The best education for representation (in my opinion) is the National Tax Practice Institute (NTPI) put on by the National Association of Enrolled Agents. Graduates from this program learn how to negotiate sucessfully with the IRS for various types of controversies and situations. Ask if the EA or CPA you talk to is an NTPI graduate. | |
| 20 June 2007 | |
| Negotiate with the IRS? Ha! Compromise? Double ha! An Offer in Compromise is conducted according to clearly defined and very strict rules. It's not a negotiation. Only the taxpayer compromises--their expectations. For a reality check before you do anything else read Publication 656. And, thanks for taking a stab at your profile. You told us what you're about, but not who you are. That would be helpful, especially since you want free professional advice. -- Larry Hess, CPA | Albuquerque, NM | Talk to me | |
| June 20, 2007 | |
| When did the IRS assess this tax for 1996? Don't they only have 10 years to collect? | |
Death&Taxes (talk|edits) said: | 21 June 2007 |
| PVV's question gets to the nub of the reason Penguin should obtain professional help for the friend, and not one of those 'settle your debts for pennies on the dollar' places, for as one person here noted, 99 cents is pennies on the dollar.
While Kevin is 100% correct, I have seen IRS recognize and talk to anyone they feel can lead them to collect money. My former 'partner' was neither enrolled nor a CPA yet IRS would recognize POAs for clients where she did not prepare the return. Of course, this was the bad, old pre-1998 IRS. | |
| 21 June 2007 | |
| If the return was late, or if even if the 1996 return was filed on time but there was a later assessment, there could still be time on the SOL of collections (plus all those other things that extend the statute). Would a non-professional even know what to look for on the transcript? Filing an OIC could be the WORST thing to do.
As far as negotiating, in my opinion, it's all in presentation. Portraying the client in the light that the IRS will conclude that they are as bad off as you say they are. One foot in the grave and another on a banana peel, so to speak. Of course, you never lie, but you sure can produce a lot of proof that things are the way you say they are. The IRS is lucky to get anything from that taxpayer. | |
| 21 June 2007 | |
| Sounds to me like a substitute return was prepared by the IRS and it needs to be addressed.
You have to get to the facts of the situtation. | |
| 25 June 2007 | |
| The IRS doesn't negotiate? That's news to my firm. We negotiate successfully every day of the week and had another Offer accepted a couple days ago. Yes, the industry sucks, but that doesn't mean that everyone in it sucks. By my estimation, it's only about 98%. | |
| 25 June 2007 | |
| Steve, could you put in a few words as to what someone with a problem should be asking as they interview potential professional representation. In other words, how can they tell the 2% from the 98% - they all appear to have the same initials behind their names. | |
| 26 June 2007 | |
| I would only hire a firm if you can talk with a licensed representative BEFORE hiring them. Get the name and legal designation of the person so that can be verified. Period. A free 15 minute consultation should give the taxpayer enough peace of mind to know that they are dealing with someone reputable. Look, over 14 years I've had cases I'm not particularly proud of. We're not perfect. But, we'll never knowingly take a case when we shouldn't and we won't screw over clients.
Here's something else to look for: When you find someone on the Internet, make sure that the website includes a verifiable physical address; a local phone number and the name and designation of at least one Enrolled Agent (EA), Certified Public Accountant (CPA) or attorney working for the firm. I believe strongly that many of the companies that advertise only are shells and create numerous sites to play games with regulators. Oh wait, the IRS doesn't gives a rat's pitoot anyway. Oops, my bad. Maybe, they're trying to stay ahead of Attorney's General and class action attorneys. Whatever. I get many calls from individuals AFTER they've been screwed over. I have one right now that paid $15,000 to one of the really bad firms and they did NOTHING, but really screw things up royally. | |
