Owing The IRS

Owing the IRS money is a very serious matter. Many times the collection officer might not be sympathetic to your financial situation, even if you consider that the error is from their system and that you are not not liable for tax! So if you want time to gather documents to prove that you do not owe the tax, or you owe less than they claim, then you must still provide the revenue officer with the requested collection information. The information will include where you and your spouse work, where your assets are, including bank numbers.

If you do not give the revenue officer everything they demand, whether they are right or wrong, you assume the risk of having levies and seizures of your paycheck, bank account, retirement account, social security check, and other source of income. A revenue officer may seem friendly and understanding. Don't forget that they work for the federal government, not you! It is their job to collect all the money that their computer screen shows, in the shortest period of time.

After examining hundreds of cases a year, I have found that most people, when owing the IRS , and attempting to resolve their IRS matter, will end up overpaying taxes, fail to file all required reports correctly, or having unnecessary levies and seizures of their assets. There are ways to remove taxes because of statute expiration, penalty removals, offers in compromise etc. These things are often missed. There are ways to bind the IRS into an agreement that will stop them from additional collection action. In fact, I believe that over 90% of the people who tell me that they are in an installment agreement fail at least one of the five necessary tests.

Solutions When Owing IRS...

When owing the IRS, don't call a revenue officer of the IRS without first consulting a taxpayer representative who handle these matters every day. There are too many things that can go wrong when someone who does not have the day-to-day knowledge and experience tries to handle a representation before the collection division. The collection officers work for the government and they are prepared to use many procedures to their advantage. I personally represent CPAs and Attorneys who otherwise would be quite capable of handling financial matters. However, they recognize my expertise in this area, and that it is necessary to hire someone with my level of experience.