Negotiating Penalties & Interest With The IRS

by James A. Gage

Negotiating with the IRS is not as hard as one would imagine when it comes to penalties and interest! Let me qualify that statement before I get a flood of e-mails telling me I don’t know what I’m talking about.

Let's say, you've gotten an IRS tax bill from your client to negotiate and not only does it state that they owe more taxes than they think, but it lists additional fees as well. These are penalty and interest fees, and they're standard IRS procedure. But is there anything that you can do about them?

First, interest is statutory, meaning its federal law- that under no circumstance and or situations can this interest be waived, unless the tax is forgiven or shown to be in error! However, interest can be deferred if you enter your client into an installment agreement or if you obtain a moratorium.

Secondly, penalties can be waived – finally some good news! However, they can only be waived after the initial principle, interest and penalties have been paid in full. Then you may apply for “Abatement”, AKA waiver of all penalties on IRS Form 843; of course this is not a guaranteed approval, but is based on the circumstances behind the delinquency(this is where you negotiating skills on paper will serve you well).

Therefore, you must show "reasonable cause", which simply means a good excuse. IRS agents are specifically instructed to carefully analyze any sound reason that you may have which could have led to your delay in filing or paying the proper tax. As a matter of fact, the Internal Revenue Manual lists seven categories of excuses for abating any tax penalty except fraud:

1. Death or serious illness of the taxpayer or immediate family.


2. Unavoidable absence.


3. Destruction of the business or records by fire or other casualty.


4. Inability to determine the tax because of reasons beyond the taxpayer's control.


5. Civil disturbances.


6. Lack of funds, but only when the taxpayer can demonstrate the exercise of ordinary business care and prudence, and


7. Other reasons establishing that the taxpayer exercised ordinary business care but could not comply within the prescribed time limits.

This is one of the many factors you must keep in mind when negotiating an IRS tax situation for your client as an Independent Arbitrator.

Want to learn how you can become a successful independent arbitrator and settle IRS debt for businesses without any experience at all? Check out our video that shows you how at :http://negotiatingforaliving.com/watch-our-video/

Negotiating Penalties & Interest With The IRS

  Negotiating with the IRS is not as hard as one would imagine when it comes to penalties and interest! Let me qualify that statement before I get a flood of e-mails telling me I don’t know what I’m talking about.                                                              

Let's say, you've gotten an IRS tax bill from your client to negotiate and not only does it state that they owe more taxes than they think, but it lists additional fees as well. These are penalty and interest fees, and they're standard IRS procedure. But is there anything that you can do about them?

First, interest is statutory, meaning its federal law- that under no circumstance and or situations can this interest be waived, unless the tax is forgiven or shown to be in error! However, interest can be deferred if you enter your client into an installment agreement or if you obtain a moratorium.

Secondly, penalties can be waived – finally some good news! However, they can only be waived after the initial principle, interest and penalties have been paid in full. Then you may apply for “Abatement”, AKA waiver of all penalties on IRS Form 843; of course this is not a guaranteed approval, but is based on the circumstances behind the delinquency(this is where you negotiating     skills on paper will serve you well).

                                                                                                                     Therefore, you must show "reasonable cause", which simply means a good excuse. IRS agents are specifically instructed to carefully analyze any sound reason that you may have which could have led to your delay in filing or paying the proper tax. As a matter of fact, the Internal Revenue Manual lists seven categories of excuses for abating any tax penalty except fraud:

1. Death or serious illness of the taxpayer or immediate family.
2. Unavoidable absence.
3. Destruction of the business or records by fire or other casualty.
4. Inability to determine the tax because of reasons beyond the taxpayer's control.
5. Civil disturbances.
6. Lack of funds, but only when the taxpayer can demonstrate the exercise of ordinary business care and prudence, and
7. Other reasons establishing that the taxpayer exercised ordinary business care but could not comply within the prescribed time limits.

This is one of the many factors you must keep in mind when negotiating an IRS tax situation for your client as an Independent Arbitrator.

Check out how you can make a 6 figure income solving IRS tax problems on a part time basis: Click Here 

Ten Tips for Successful Negotiating

by James A. Gage

The ability to negotiate successfully is crucial for survival in today's changing business world. Negotiation is fun if you know what you're doing. So for all you busy executives, here are James Gage's Tips for Successful Negotiating:

1. Develop "negotiation awareness" Successful negotiators are assertive and challenge everything. They know that everything is negotiable.

"Challenge" means not taking things at face value. It means thinking for yourself. You must be able to make up your own mind; as opposed to believing everything you are told. On a practical level, this means you have the right to question the asking price of that new car. It also means you have an obligation to question everything you read in the newspaper or hear on television. You cannot negotiate unless you are willing to challenge the validity of the opposing position.

Being assertive means asking for what you want and refusing to take "no" for an answer. Practice expressing your feelings without anxiety or anger. Let people know what you want in a non-threatening way. Practice 'I' statements. For example, instead of saying, "You shouldn't do that," try substituting, "I don't feel comfortable when you do that."

It should be noted that there is a difference between being assertive and being aggressive. You are assertive when you take care of your own interests while maintaining respect for the interests of others. When you see to your own interests with a lack of regard for other people's interests, you are aggressive. Being assertive is part of negotiation awareness.

2. You must become a good listener. Negotiators are detectives. They ask probing questions and then shut up. The other negotiator will tell you everything you need to know - all you have to do is listen.

Many conflicts can be resolved easily if we learn how to listen. The catch is that listening is the forgotten art. We are so busy making sure that people hear what we have to say that we forget to listen.

You can become an effective listener by allowing the other person to do most of the talking. Follow the 75/25 Rule -- listen 75 percent of the time, and talk only 25 percent of the time. Encourage the other negotiator to talk by asking lots of open-ended questions -- questions that can't be answered with a simple "yes" or "no."

3. Be prepared. Gather as much pertinent information prior to the negotiation. What are their needs? What pressures do they feel? What options do they have? Doing your homework is vital to successful negotiation.

4. Have high expectations. People who aim higher do better. If you expect more, you'll get more. Successful negotiators are optimists. A proven strategy for achieving higher results is opening with an extreme position. Sellers should ask for more than they expect to receive, and buyers should offer less than they are prepared to pay.

5. Be patient. This is very difficult for Americans. We want to get it over with. Whoever is more flexible about time has the advantage. Your patience can be devastating to the other negotiator if they are in a hurry.

6. Focus on satisfaction. Help the other negotiator feel satisfied. Satisfaction means that their basic interests have been fulfilled. Don't confuse basic interests with positions: Their position is what they say they want; their basic interest is what they really need to get. Always make your opponent think they have won!

7. Don't make the first move. The best way to find out if the other negotiator's aspirations are low is to induce them to open first. They may ask for less than you think. If you open first, you may give away more than is necessary. A good example of this is something I learned in real estate investing a long time ago; ‘the first to mention price first always loses!

8. Don't accept the first offer. If you do, the other negotiator will think they could have done better. (It was too easy.) They will be more satisfied if you reject the first offer -- because when you eventually say "yes," they will conclude that they have pushed you to your limit. Therefore, always leave yourself a number of concession points or a financial spread when dealing with numbers.

9. Don't make unilateral concessions. Whenever you give something away, get something in return. Always tie a string: "I'll do this if you do that", in the legal arena this is known as “Quid pro Quo”. Otherwise you are inviting the other negotiator to ask you for more.

10. Gage's Law of Success: Always be willing to walk away! Never negotiate without options.

If you depend too much on the positive outcome of a negotiation, you lose your ability to say "no." Clients often ask me, "James, if you could give me one piece of advice about negotiating, what would it be?" My answer, without hesitation, is: "Always be willing to walk away."

Check out my latest book on Amazon - which has made it #1 for the fifth straight week - entitled : "How to Negotiate With The IRS & Win ! Click Here to Check it out....

My new book is now available on Barnes & Noble's Nook !

Check out my book on How To Negotiating For Cash Flow In Real Estate: Escrow Riches ! Now available on Barnes & Nobles Nook: http://bit.ly/fCutFG

This is a very lucrative avenue to include in your business, especially with the state our economy is in.

To your success,

James A. Gage

Negotiating Book Announcement

My new book is now available on Kindle entitled: How To Negotiating For Cash Flow In Real Estate: Escrow Riches ! : http://amzn.to/h5mB3n

Check it out and let me know what you think.

To your success,

James A.Gage

Negotiating: Happy Thanksgiving!

Happy Thanksgiving!

I love this Holiday and whether you celebrate Thanksgiving or not
I wanted you know that I am grateful for you, for your
friendship, loyalty and business.
Whatever your tradition, whatever favorite foods you enjoy,
whomever you spend the day with--I wish you a Happy Thanksgiving,
with plenty of time for reflecting, sharing with others, and
enjoying the day.

Truly, you are the best!

Be well.

James Gage

Career Change Video

Check out my latest video: Click Here

be well and a s always to your success.

James A. Gage

Negotiating Penalties & Interest With The IRS

Negotiating Penalties & Interest With The IRS

by James A. Gage

Negotiating with the IRS is not as hard as one would imagine when it comes to penalties and interest! Let me qualify that statement before I get a flood of e-mails telling me I don’t know what I’m talking about.

Let's say, you've gotten an IRS tax bill from your client to negotiate and not only does it state that they owe more taxes than they think, but it lists additional fees as well. These are penalty and interest fees, and they're standard IRS procedure. But is there anything that you can do about them?

First, interest is statutory, meaning its federal law- that under no circumstance and or situations can this interest be waived, unless the tax is forgiven or shown to be in error! However, interest can be deferred if you enter your client into an installment agreement or if you obtain a moratorium.

Secondly, penalties can be waived – finally some good news! However, they can only be waived after the initial principle, interest and penalties have been paid in full. Then you may apply for “Abatement”, AKA waiver of all penalties on IRS Form 843; of course this is not a guaranteed approval, but is based on the circumstances behind the delinquency(this is where you negotiating skills on paper will serve you well).

To read the rest of the article Click Here

***See you over on Negotiating For A Living ...

James A. Gage

Negotiating with The IRS

Okay, I know the mere mention of those three letters cause shivers to go up and down our spines, but that will be a thing of the past! My course on " How to Negotiate with The IRS" will be out soon, and dealing with the IRS will never be the same!!!! Be sure to visit my blog on a daily basis or at least a couple of times during the week to find out when my cutting edge course is released. Better yet, sign up for my Free Newsletter and get notified first - Click Here

Talk to you soon.

Be well and to your success.

James A. Gage
www.NegotiatingForALiving.com

IRS Opens Dedicated Phone Line for Gulf Oil Spill Victims

The Internal Revenue Service today announced the opening of a special telephone line for taxpayers affected by the Gulf oil spill.

Individuals who have questions about the BP payments or who are experiencing filing or payment hardships because of the oil spill should contact the IRS at 866-562-5227.

The special services phone line will operate weekdays from 7 a.m. to 10 p.m. local time.

In certain cases, the IRS can assist oil spill victims by suspending collection and examination actions. Taxpayers who need this assistance must request it. Others may decide to continue making payments because interest will continue to accrue on outstanding balances, even if some penalties are abated.

In addition to postponing collection actions, the IRS continues to have a number of other ways to help taxpayers deal with oil spill issues or other economic hardships, including:

*
Added flexibility for missed payments on installment agreements and offers in compromise for previously compliant individuals.
*
Consideration of a taxpayer’s current income and potential for future income when negotiating an offer in compromise.
Accelerated levy releases.
*
Assistance of the Taxpayer Advocate Service for those experiencing economic harm and seeking help resolving tax problems that have not been resolved through normal channels.
*
Special Assistance on July 17 at Gulf Coast Offices
In addition to the new telephone line, the IRS will conduct a special assistance day on July 17 for oil spill victims in seven cities.

Taxpayers and tax preparers will be able to work directly with IRS employees to resolve tax issues, including specific topics related to the oil spill. The IRS will hold the Gulf Coast Assistance Day in the following cities:


Mobile, Ala.
*
Panama City and Pensacola, Fla.
*
New Orleans, Houma and Baton Rouge, La.
*
Gulfport, Miss.


Times and addresses will be announced soon.

Negotiating: Happy 4th of July

As we spend this 4th of July weekend with family and friends, let’s pause for a moment and think about what this Independence Day really means. As our country goes through hard times, let us remember that the sacrifices of those that have gone before us paid so we may enjoy the opportunities and freedoms which make this the best country in the world.

Happy 4th of July to you and yours, and don’t eat too much BBQ.

James A. Gage

Negotiating Tips: Tip 2 of 8

2. :Develop "negotiation awareness" Successful negotiators are assertive and challenge everything. They know that everything is negotiable.

"Challenge" means not taking things at face value. It means thinking for yourself. You must be able to make up your own mind; as opposed to believing everything you are told. On a practical level, this means you have the right to question the asking price of that new car. It also means you have an obligation to question everything you read in the newspaper or hear on television. You cannot negotiate unless you are willing to challenge the validity of the opposing position.

Being assertive means asking for what you want and refusing to take "no" for an answer. Practice expressing your feelings without anxiety or anger. Let people know what you want in a non-threatening way. Practice 'I' statements. For example, instead of saying, "You shouldn't do that," try substituting, "I don't feel comfortable when you do that."

It should be noted... To read the rest of the article Click Here

Negotiating Penalties & Interest With The IRS

Hello All:

Here is your Negotiating Article of The Month for June 2010. This month we will venture into the subject of the IRS ! Enjoy...

James A. Gage

Negotiating Penalties & Interest With The IRS: Click Here

Negotiating Tips: Tip 1 of 8

Hello All:

If you have read my blog for any length of time, you will know that I have given a lot of negotiating tips to you to use in your personal and professional lives. That being said, I would like to give you another 8 tips over the next eight posts; these too will allow you to have the edge on your opponent when negotiating!

Be willing to Negotiate:

Some people are too shy to talk about money. Others think it's rude or demeaning. And in many cases they're right. However, when it comes to doing a deal - and we all have to sometimes - being unwilling to engage in "money-talk" can be a very expensive business.

There are a lot of experienced negotiators out there. If you're buying a house or a car, or taking a new job, you can be sure you'll have to deal with such a person. If they can see you're timid about the whole business, many will take advantage of that fact.

You also shouldn't be shy about turning something that may not immediately appear to be a negotiation into one. If I'm buying a few expensive things from the same store, I'll often ask them to throw something in for free or reduce the price. Just because there's no sign saying you can do that, doesn't mean you can't. Often, simply by asking for something extra I'll get a better deal.

Until next time be well.

James A. Gage

Click Here for more great articles.

Negotiating Tip of The Month Feb 2010

Never be the first person to name a figure

This is an expensive lesson to have to learn, but a good one. I do a lot of contract work, and one of the first questions I'm usually asked is "What's your hourly rate?". This is a high pressure question, and I often found myself blurting out a figure that was lower than what I really wanted.

These days, I've learned the importance of getting the other person to say a number first. Now, I respond to that question by asking "What's the budget for this contract? Or, what were you expecting to get for this....". Often, I'm surprised to discover they're offering me a better deal than I thought they were.

For more negotiating tips Click Here

Negotiating Tip: Arriving at The Negotiations

Hello Everyone:

Today we will talk about arriving at the location you will be negotiating at. Now I know a lot of negotiations are done over the telephone, but today we will concentrate on in person negotiating.

When arriving at a location designated for the negotiations keep these tips in mind:

--> Always call the day of the negotiations to confirm! Nothing worse then to be the only one showing up!

--> Arrive 5-10 minutes early so you can scan your surroundings

--> Dress appropriately, always dress like a professional

--> Always present your business card to the receptionist

--> Shut off all cell phones and electronic devices

these are just a few tips you should keep in mind.

For more great negotiating tips Click Here

Until next time - be well.

James A. Gage

Negotiating Tip: What Can I Negotiate?

Hello All:

I get this question all the time : " What can I negotiate in order to make a steady income?" Well, besides that being a loaded question, I mean, come on that's like asking me what you should take in college! What I mean to say is the world is really at your beck and call...

You can virtual negotiate anything on behalf of an individual or organization! Below I'll give you some examples below.

You can negotiate...

--> IRS Tax Liens

--> Loan Modifications

--> Business to Business debts

--> Business to Business Law Suits

--> Leases

--> Credit Card Debt

--> Installment Loans

--> Lines of Credit

--> Meals/Employment Taxes

etc...

These are just a few of the venues you could be making consistent cash flow from with your own negotiating business. For more information on how you can start your business today click here

Negotiating Tip: Making Money with Foreclosures

Hello All:

I just got off the phone with a real estate attorney friend of mine that confirmed what I have been telling you, my faithful readers for the past 3 months! What's that you say? That the 3rd wave of foreclosures has begun to raise its ugly head. He said he can't handle the amount of individuals coming to him seeking loan modification/foreclosure help on properties that have first and second mortgages on them (AKA Prime loans). Also, individuals with home equity loans that are in default are starting to become more numerous!

Most individuals have been living off their credit cards hoping to trend water until a turnaround in the economy; but most have run out of time. My attorney friend said the average credit card debt he is seeing is between $50K - $200K; that means we will also see an uptick in bankruptcies!

If this trend continues, which I don't see any evidence it won't, we will see commercial foreclosures sky rocket! Fasten your seatbelts; this is going to be a bumpy ride…
So what does that mean for us as Independent Arbitrators? It means another avenue for income; mainly negotiating loan modifications, and possible negotiating that credit card debt if there is consistent cash flow in order to structure payment plans , and of course, enough money remaining to pay our fees

For more information on how you can cash in on this lucrative niche – click here .

Remember, those who can recognize trends and patterns, and act on them quickly will always make money in any economy.

Until next time be well.

James A. Gage

Negotiating Tip: No Today, Doesn't Mean No Tomorrow

To many times we as negotiators give up on sales calls, contracts or just plain one-on-one negotiating because someone told us no. Why? Because somewhere along life's journey we have been told if someone tells us no today, that means tomorrow the answer will be the same - nothing could be further from the truth!
Over the past 20 plus years that I have been negotiating, there have been numerous times that if I did not revisit the issue after a client or prospect said no to me, I would have missed out on the transaction or deal.

Once you have received cutting edge negotiating training like I provide my students, it will become second nature to you when it is appropriate to revisit an issue or prospect. To learn more about my training program or sign up for a Free Newsletter click here .