WHAT TO EXPECT WHEN RESOLVING YOUR TAX DEBT
You are probably interested in knowing two things: One, can I settle this for less than what you owe? And two, How long will this take?
Upon retaining our firm to resolve your tax issue, some of the relief will be immediate and some will be over time. It is important to keep in mind that IRS problems didn’t come about overnight and will take time to resolve. The good news is that generally you won’t have to meet or speak with the IRS while we are representing you. An average Offer in Compromise case can take anywhere from 6 – 12 months (and longer) depending on the amount of tax liability owed, the complexity and, your individual facts and circumstances.
ROAD MAP TO RESOLUTION
Free Consultation: The first step is to call or come in for your confidential, no obligation free evaluation. At this meeting, we will evaluate your situation and discuss all available options for resolving your matter. This generally takes about 30 – 45 minutes; however, there are times where the information provided at this meeting is not sufficient to determine a course of action. It is advised, therefore, to have / bring all recent notices and correspondence from the IRS to the meeting.
- RETAINING OUR FIRM: At the end of your consultation, and if selected as a good “fit” for our firm, you will be given the opportunity to retain us as your tax representative. You will be required to sign an Engagement Letter and make financial arrangements in order to pay for our tax help services. We will file a Power of Attorney (POA) with the IRS. This will provide you with immediate relief because from this point on the IRS will be required to contact us instead of you. If they should happen to contact you, all you need to do is politely request they contact Financial Management Services directly and provide them with our contact information including phone number. A separate POA will be required for any State problem you retain us for as well.
- BEGINNING THE TAX RESOLUTION PROCESS: Together we will develop a phased strategy for resolving your case and advise you on what steps to take for the most effective resolution. I will be available to you by direct phone, individual email, or in person
- IRS COMPLIANCE: Generally, before any negotiation / settlement will be accepted by the IRS, you must become a compliant taxpayer. Compliance means that all past due delinquent income tax returns must be prepared and filed. Compliance also means you have to be “current” on your quarterly estimated income tax payments and you must be withholding at the current rate if a wage earner. I will advise you what must be done to achieve this. For those of you who can’t furnish records necessary to prepare your taxes, Financial Management Services has developed methods, in accordance with IRS regulations, for completing the preparation of tax returns in order to get them filed asap.
- YOUR (CLIENT) RESPONSIBILITIES: Clients who achieve successful resolution of their tax matters have the following traits in common: They view the relationship with us as a collaborative one. They view this as a “project” that requires cooperation. They follow through, on a TIMELY basis, with our requests for information and documentation. Clients that achieve stated resolution goals return our phone calls, emails and stay in contact with us throughout the duration of their case.
- TAX SETTLEMENT NEGOTIATION: We will propose a plan of resolution to the IRS that you can live with and see through to acceptance. However, it is rare that a proposal is accepted right away. Through diligence, persistence and follow-up, we will monitor, provide additional information to the IRS as needed, and negotiate your proposed resolution until a resolution is achieved.
- TAX RESOLUTION IS REACHED: We will review the final resolution of your case by the IRS to make sure it is as agreed upon. If not, we will insist that it be changed to reflect what was agreed to. If the IRS is unwilling to do so, we will advise you as to what your options are for the next step. Finally, you will be advised on what you must do in order to succeed with your resolution and avoid future tax problems.