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Wednesday, 23 August 2006 |
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When it comes to "doing a deal with the IRS", one must realize that there is no wheeling and dealing outside the law. That is, the IRS is bound by existing tax laws, as is the taxpayer, and both must come to an agreement or deal within the letter of the law. There is no backdoor sliding nor is there any skirting of existing law. If there ever was any secret to doing a deal with the IRS, it is being versed in the tax code and not lying or stretching the truth when asked specific questions or when substantiating information is required by the IRS.
Whether one owes back taxes, is having an audit performed, or is facing penalties, the key is to locate specifically what the IRS is requesting. Make sure that this request is based on material fact and not on errors on the return or information that was not recorded, was omitted, or otherwise overlooked, and that the IRS action is within the proper parameter of the law. If these issues are met and you are not able to resolve the situation that the IRS is requesting to be resolved, then you must inform the IRS of your issues and concerns. These concerns could entail waivers of penalties, deadline extensions, appeals, etc. Whatever it is you must request of the IRS, it must be within the letter of the law endowed to the taxpayer. If it isn’t, then the IRS cannot grant the request, as they are not authorized to act outside the tax law and the taxpayer cannot be granted a right that is guaranteed under federal law. Understanding all of this is the secret to any deals one is looking for. |
