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 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