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 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: 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 For A Living: 2010

Hello All:

Well, here we are at the brink of 2010! The past year was a great and profitable year for those of us who have taken our negotiating skills to the next level. In the coming year I will share with you, my faithful subscribers, some new strategies and tactics I'm currently using to bring in consistent cash flow in a down economy.

That being said, on behalf of myself and everyone here at Negotiating For A Living may the New Year bring you and yours many blessings and success in all your endeavors.

Happy New Year.

James A. Gage

www.NegotiatingForALiving.com

Negotiating Wishes

On behalf of myself and everyone here at Negotiating For A Living we wish to wish you and yours a Merry Christmas and a Happy Hanukkah.

As we rest and spend time with our loved ones and families, let's get ready to make 2010 the best year yet!

Peace be with You.

James A. Gage

Negotiating Tip For 2010

Hello All:

I know everyone, including me, is doing their last minute Christmas shopping and that's all that is in our cross hair's - but....
I would ask everyone to take a few minutes and ask yourself what 2010 will look like for you in relation to negotiating? Will 2010 be another 2009? Will you end up on the short end of the stick because you have not learned how to negotiate on your terms? Maybe you have been side tracked by life and all that goes along with the journey, or maybe, you have been on the fence on whether you should open your own negotiating business?

My point is what you need, is not someone to force you into something you are not prepared to embark upon, rather you need information and education! If you are committed to make 2010 a profitable year, then click here and sign up for my Free Newsletter with all the tips and strategies I use to run a profitable negotiating business for the last 20 plus years.

Until next time.

James A. Gage

Negotiating For A Living: Jump Start Your 2010 Finances

How would you like to be financially secure in 2010?

I know a lot of people are worried about the economy right now --
but YOU don't have to be one of them!

That's because you still have a chance to recession-proof your income
by building your own lucrative negotiating business.

And I want to help you do it in just 5 days !

Sounds crazy? Well, consider this...

In September, 36 regular people with no negotiating skills what so ever... no
websites... and a start up budget of $100.00 ... went away from my
website on a Monday morning.

By Friday afternoon, they ALL had their own REAL Independent
Arbitration business up and running.

It was an incredible success -- and now I'm offering the chance to
you again in 2009; we are only weeks away from 2010 – why not hit the ground running in the New Year?

Click here now to find out how YOU can be one of them.

http://www.negotiatingforaliving.com/negotiating-tools.html

To your success,

James A. Gage
www.NegotiatingForALiving.com

Negotiating Tip

Hello Everyone:

I hope everyone had a great Thanksgiving with your families and friends. Today I would like to share a negotiating tip that I learned many years ago which has increased my bank account 10 fold - that is....

"The first to mention price always ends up on the short end of the stick!"

When you blurt out a price you are willing to accept for your product, or especially your services, you are giving away your upside potential! Let your prospect or client make the first move in relation to compensation - you might be surprised on what you receive.

Be well.

James A. Gage

Negotiating Tip: How To Keep in Control of Negotiations

How do you keep in control of negotiations has been an age old problem since the time of the Romans. Many times the negotiations start out with you in control, and rapidly spiral out of control allowing your opponent to gain control and eventually claim victory in the negotiations.

So here is the million dollar question, how do you prevent this from happening? Good question, I’m glad you asked! Let’s say your in the heat of negotiations and suddenly you feel the scales of power tipping in favor of your opponent – what do you do?
Do you sit back, let it happen and chalk this one up in the lose column? Do you become argumentative and get up and leave? Or do you take what you can get, and walk away with the notion that something is better than nothing?
Absolutely not! You employ a tactic known as a side bar : definition: a discussion between the judge and attorneys at the bench off the record and outside the hearing of the jurors or spectators, often focusing on issues other then the main issue.

So this is what you do. You have 2 choices, you can ask a question or start addressing an issue that is off the main point in order to regain control, and once you feel your back in control of the negotiations you can revisit the main point(s) of the negotiations.
If there is a single issue you’re negotiating, ask for a break to use the restroom, or to make a phone call, or even to retrieve something from your vehicle! The purpose of this tactic is to break your opponent’s rhythm, stop their forward progression, throw their game off and cause them, when reengaged to revert back to their submissive position in the negotiations. Contrary to popular belief, not all negotiations are a “win – win” situation; the mark of a great negotiator is always striving to be on the win side of the equation.

To your success,

James A. Gage

Negotiating: Happy Father's Day

To all of you that are Fathers out there - Happy Father's Day!

I wish you a great day with your family.

Be well.

James Gage

Negotiating Tips: New Video

Hello All :

My new video on Negotiating For  A Living has just been released, why not stop by :
http://www.NegotiatingForALiving.com  and learn how you can make a 6 figure income on a part-time basis.

Be well,

James A. Gage

Negoiating Tip: Do you think there may be some opportunity here?

Hello All:

Thought you may be interested in this article I just read on the web. This is just conformation on what I have been saying about how, NOW, is the time to get your own Independent arbitration Business up and running - Don't miss out!!!!!

Bankruptcies surge despite law
Personal and corporate filings may reach 1.5 million in 2009

RALEIGH, N.C. — The number of U.S. businesses and individuals declaring bankruptcy is rising with a vengeance amid the recession, despite a three-year-old federal law that has made it much tougher for Americans to escape their debts, an Associated Press analysis found.

“There’s no end in sight,” said bankruptcy lawyer Bryan Elliott of Hickory, N.C., who is working seven days a week and scheduling prospective clients a month in advance. “To be doing this well and having this much business, it is depressing. It’s not a laugh-a-minute job.”

Nearly 1.2 million debtors filed for bankruptcy in the past 12 months, according to federal court records collected and analyzed by the AP. Last month, 130,831 sought bankruptcy protection — an increase of 46 percent over March 2008 and 81 percent over the same month in 2007.

Bob Lawless, a professor at the University of Illinois College of Law, said bankruptcies could reach 1.5 million this year and level off at 1.6 million next year — around the same time economists expect an economic recovery to begin.

Congress voted in 2005 to make bankruptcy more cumbersome after years of intense lobbying from the nation’s lenders, who complained that people were abusing the system. Before the move to change the law, bankruptcies were running at what was then an all-time high of about 1.6 million per year.

The tighter requirements initially appeared to work, with bankruptcies plummeting from a record-shattering 2 million cases in 2005 — a total that reflected a rush to file before the new law took effect — to 600,000 in 2006. But now bankruptcies are booming again.

Get started today in this lucrative business: http://www.NegotiatingForALiving.com

Negotiating Tips: Real Estate Short Sales Part 3

Hello All:

Here we are at blog entry # 3 on how I negotiated a short sale for way under fair market value.

After the Realtor presented my concerns and offer to the bank, the bank counted with a higher sales price dismissing my fix up costs. So what did I do? I had contractors sign affidavits substantiating my fix up costs and assessment of the property, I then submitted this and the original offer back to the bank.

Less then 24 hours later the bank agreed to my terms. Why? I was able to document and substantiate what I represented in negotiations.

Remember, when you have the facts on your side, you argue the facts, when you have the law on your side,you argue the law, when you have neither, you pound the table.

Until next time.

James A. Gage

Negotiating Tips: RealEstate Short Sale - Part 1

Hello All:

As I said in my last post, I would be blogging about how I obtained a home way under fair market value through the use of negotiating stratergies and tactics.

The first thing I did is something I learned a long time ago : Know your compettition, know your subject matter; another words I needed to know the property.
I found out how long the property was on with the realtor, was it vacant, where was the owner, who were the bank or banks involved, what did the market hold. when I received the information it played out like this:

On the Market : 180 days
It was vacant for months, owner moved out of US and was being represented by an attorney.
The note was bought from a bank that went out of business.
The market showed that homes of similar square fotage and layout sold for a pricing point between $120k - $149K.

On my next post I will show you how I took this info and formulated mu offer to the bank.

Be well,

James A. Gage

Negotiating Tips: Real Estate

Hello All:

It's been awhile since my last blog entry, so I wanted to let you know what I was up to! I have been in the process of negotiating a pre-foreclosure deal (aka Short Sale) with a bank, which will remain nameless. This is one of the things I do with the income I receive from my Negotiating For A Living business! That being said, many have e-mailed me saying they do not beleive that you can buy property 50 cents on the dollar, even in this economy.

Nothing could be further from the truth, it's all about negotiating and your skills and ability to get your position across. You see this particular home was on the market with a $250,000.00 mortgage, I offered $75k, and guess what? They took it! I beleive that equals 30 cents on the dollar! This house needs only inside paint and then will be ready to do a lease option or straight sale, which ever one materalizes it will equal $$$$$$$$$$ for me to the tune of 40-50k - not bad. That equals about a 58%-70% return give or take on my money.

In up coming posts I will breakdown some of the tactics and negotiating stratergies I used in this deal.

Be well...

Negotiating Tip: Do I need a Negotiating Trainer?

One of the most important questions you have to answer for yourself as you build your negotiating business is who are you going to listen to and learn from?

This is especially true now with so many home based business marketers vying for your attention and screaming “me, me, me!”

I have found that there are 3 types of “teachers & trainers” on the internet, and only one type is always worth following:

Type 1 - Someone who has read a book or gone to a seminar on a topic, has never successfully done it, and is now going to teach you how to do it. I recommend my RLH response here: Run Like Hell!

Type 2 - Teacher has successfully done what you want to learn, is going to teach you, but is no longer doing it. Approach with caution: while you might be able to learn some good tips and strategies, you will be learning what got them where they are, not what they are doing right now to be successful. You won’t learn leading edge new stuff.

Type 3 - Teacher has successfully done what you want to learn, is going to teach you, and continues to do what is being taught. With this kind of teacher you get it all: what got them to where they are, what they are doing now to continue to grow, and what are the new next steps and strategies to keep you moving forward.

This is the kind of teacher with whom I will spend my time and money. By the way type 3 is what describes my One-on-One Mentoring philosphy which I have practiced for over 22 years!

My recommendation: Learn from and follow only those who have done it, are teaching it, and continue to do it in their own businesses every day.

If you agree as I do, that this is the best approach to becoming successful in the shortest time frame possible, please stop by : http://www.NegotiatingForALiving.com
and see the varity of programs we have avaiable to make you successful in todays market.

Negotiating Tips: Can you believe this?

Hello All:

If this article doesn't move you to open your own Negotiating business I don't know what will. We are their only hope to stay viable - visit :

http://www.NegotiatingForALiving.com

Business bankruptcies keep rising; no relief in sight

WASHINGTON — As the curtain falls on one of the most devastating financial years on record, business bankruptcies — both large and small — continue to soar.
The nearly 58,000 commercial bankruptcies filed nationwide through November of this year exceed the year-end totals of every year since Congress overhauled the bankruptcy laws in 2005, according to Automated Access to Court Electronic Records, an Oklahoma City bankruptcy data company.
The 11-month figure is also 35 percent more than the nearly 43,000 business petitions filed in all of last year, the company's data show. Estimates for 2009 could triple according to industry experts – what a mess !

75 % of businesses in 2008 identify themselves as in financial trouble.

Negotiating Tips: Can You Negotiate PropertyTaxes

Hello All:

I received an e-mail this week asking me if I truly believed that everything is negotiable? He further inquired if I did believe that how he could negotiate his property taxes on his home?

If you have followed any of my newsletter or blog articles you know that my answer is going to be a resounding YES on the negotiating question, but do you know what I am going to say about negotiating property taxes?

I won't keep you in suspense any longer...

Everything is negotiable, even property taxes! I have attached a recent e-mail I sent to my real estate newsletter subscribers on tat very topic.

Hope this helps.
____________________________________________________________________

Hello All :

Just a quick note to remind you that in most states your last day to file for a real estate abatement on property taxes is January 31, 2009. You can fill out these requests for abatement for both residential and investment properties on a yearly basis.

For those of you that don't know what I am talking about, I'll recap briefly the process. First, you call your town or city assessors office and ask for an "Abatement” form for property taxes, and of course ask about the time frame to file. Next you fill in all the requested information, along with making a compelling statement on why they, the assessor’s board, should reduce the assessment on your property. Then, file it with the right governmental office and await their reply.

It has been my experience that most organizations will at least decrease your assessment, by at least a few dollars for taking time to apply to the process, while others will grant you a substantial reduction.

Remember, you have not, because you ask not !

Be well,

James Gage

http://www.JGage.com

Negotiating Tips

Hello All :

I want to personally invite you to following me on Twitter : http://twitter.com/JGage
in addition to my blog I will be posting other valuable negotiating articles.

Here is to a prosperous 2009.

Be well,

James A. Gage

Negotiating Tips: Predications for Our Economy 2009

Hello all:

As I do every year I would like to give you what I see happening in the coming year in our economy.

1. You will see more and more businesses experiencing financial problems, and most will have to shut their doors !
2. You will see there will be an enormous need for professional negotiators to keep businesses viable !
3. You will see gasoline prices increase once again.
4. You will see oil prices escalate once again as speculators and corporations manipulate the oil and oil futures market !
5. You will see unemployment increase further towards 10% or more !
6. You will see the stock market increase to Dow 10,000 or even 11,000 in the months following the installation of the new President, after the optimism is gone and reality sets back in the stock market will retreat back into negative territory. We could possibly see Dow 6,000 before all is said and done !
7. You will see Gold escalate to $1600.00 or higher an ounce !
8. You will see the further devaluation of the U.S. Dollar against other foreign currencies !
9. You will see a temporary stabilization of the housing market, and then we will return to the downward trend in home valuations and the foreclosure arena !
10. You will see more banks fail and more bank mergers, until we end up with 1 or 2 banking institutions. Note: this may take an additional year or two !
11. You will see your state and local taxes escalate, because federal funding will be greatly reduced or cut off entirely, not to mention business revenue paid to the states will greatly be impacted because they will be going out of business in alarming numbers !
12. You will experience inflation on the rise in every aspect of our economy !

These are just a few of what I see happening in 2009, I hope they don’t happen, but 90% of my predictions last year have unfortunately have come true…

The good news here is if you start planning and taking steps with the info I have given you in these few lines you will be able to survive the storm, Remember, even in the “Great Depression” there were people who profited and actually became millionaires.

So what do I suggest?

1. Start your own Independent Arbitration business as soon as possible to cash in on the mounting business that are having financial difficulties and need your help.
2. Buy silver to hedge against inflation - it is getting ready for a big move per ounce.
3. When investing in the stock market use “Options” – play the cycles, get in and get out.
4. Play the cycles in the Forex market.

Until next time be well.

James A. Gage