Insurance World

You see the commercials on TV all the time - Why take on the IRS by yourself? Reduce your IRS debt. The IRS is looking for non-filers. Are you being audited?

Marketers have long used fear to sell their goods and services. Certainly the IRS brings the fear factor for most people. But marketing also relies on the fact that you as a consumer don't know the whole story, so fear carries the day.

So let's go beyond the fear and discuss several key items that you as a consumer and taxpayer should know before you hire someone to take on the IRS. This makes your IRS experience easier to handle and gives you the coping skills to handle the situation.

And understand this key item - no matter where you are in the process, you have options and the ability to get back in front of the situation. Use the IRS' own rules to your advantage.

You have to know where you are in the IRS queue to make an informed decision. Dealing with the IRS is like the proverbial box of chocolates - no two cases are the same because each case is at a different stage, with a different person and a different case load. Identifying the status and the IRS contact person are extremely important.Establishing communication with the IRS can ease your "IRS experience". Once you identify the contact person it's very important to establish and continue a dialogue with the IRS. Buying goodwill via your actions and communications is critical.You need to find a sympathetic ear at the IRS. You'd be surprised how nice and understanding most IRS employees are when you engage them in dialogue. Yes, there are IRS personal who are difficult and obstinate. But there are ways to move beyond that person and to get to a more sympathetic ear - someone who understands that life happens.Formulate a plan and stick with the basics of that plan. Communicate that plan to the IRS and hold to it - let them in on any changes. Look - all the IRS wants to do is to move your case off their docket. Show them a plan and they'll move on the next case on their docket that's more difficult. Showing the IRS consistent progress is important - it can buy you more goodwill than you can imagine.Presentation is a key. Nice, pretty, and organized is more important that the actual substance of what you send in - form over substance. Make it easy on the IRS examiner - the easier you make his job the less time he will spend looking into the details of your case.

San Antonio attorney Martin Cantu invites you to visit his website, http://cantulegal.com/, for more information on how to obtain the legal help you need. Martin also contributes real estate articles to [https://txhmloan.com] and other websites.

(c) Copyright Martin Cantu - All rights reserved.

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This is the second article in the three article series on how to negotiate with the IRS on tax liabilities. The first article detailed how the taxpayer could use the option of Effective Tax Administration (ETA) in addressing any tax liabilities owed to the IRS. This article will explain how the taxpayer can use what is called Collateral Agreements to address their tax liabilities.

Sometimes in dealing with the IRS a taxpayer can reach an impasse which will make it more difficult to reach an agreement over the liability owed. When this happens the taxpayer can look to offer terms and other stipulations that are not in a typical negotiation with the IRS. The use of collateral agreements can be used to make a more attractive offer to the IRS along with other stipulations that may, sometimes, include a non-cash payment options.

The collateral agreement, in context of an OIC, may arise in several situations when dealing with the IRS. Most often this happens when the IRS believes that the taxpayer's income will increase in the future allowing for payment of the liability. However, the taxpayer may disagree with how long this increase may last e.g., overtime hours, bonuses, and the like. If the taxpayer is working extra hours at their place of employment then a collateral agreement may be feasible to ensure that the liability can be procured. This option would be based upon the future-income potential of the taxpayer to allow for a fixed percentage of the annual income, over a certain base-level amount, to be paid in addition to any original amount that has been previously offered.

The use of future-income collateral agreements are monitored annually during the five-year future compliance term for income fluctuations. Sadly, though future-income collateral agreements are not widely offered by the IRS and are not known by taxpayer's, due to Form 2261 not being readily available at http://www.irs.gov. If you believe that the use of a collateral agreement is appropriate and necessary, as the taxpayer should ask that the IRS begin to prepare it.

A taxpayer can also use a collateral agreement to break through a negotiating roadblock in installment agreement negotiations. Additionally, the agreement can be a useful tool in negotiating the deferral or forbearance of filing a notice of federal tax lien, as the IRM instructs IRS employees to withhold filing a federal tax lien if a taxpayer's has entered into a collateral agreement. This would be useful, by the taxpayer, to allow for more time to obtain the money to settle the liability. A collateral agreement does not provide additional consideration to prompt acceptance of collection alternatives, but rather calls for some performance by the taxpayer that is ensured by collateral security. This security can be in the form of marketable stocks, bonds and letters of credit, which are generally acceptable as collateral security for an agreement to prevent a notice of federal tax lien filing.

As a taxpayer, this is one of several options that you may use to compromise your liability with the IRS. By working with the IRS, with the methods that are available for use, the taxpayer can remedy their liability in a manner that is acceptable to the IRS, without incurring additional fines, fees, and penalties for failing to address the liability amount owed.

For more information, or assistance, in representing yourself in your legal matter please contact DRWelchGroup, LLC to receive the information to protect your legal interest.

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