Licensed tax professionals are the ideal choice for taxpayers with IRS back tax issues. Licensed tax professionals can help taxpayers resolve the most difficult of tax debt cases with their years of experience with IRS negotiations.
Tyler Jones, Associate Licensed Tax Professional at Tax Defense Network, explains what taxpayers can expect from a licensed tax professional within the tax debt resolution process.
“In my dealings with the IRS, I have learned that there are three steps to approach any resolution. The first step is compliance, by having all tax returns filed for the previous six years. The second step is making sure there are no assets that the IRS will be able to receive funds from. The IRS will look at those assets to see if there is any equity, and may request that those assets be sold, or that they be transferred.
The final step is determining an affordable payment. The IRS will take a financial analysis in order to do so. When dealing with the IRS, this is a negotiation process. We come up with what is known as a ‘bottom line.’ We come in with a bottom number and submit that to the IRS. The IRS will most likely come back with the expenses they are not allowing. We will then go back and forth until we reach a final resolution.”
Licensed tax professionals have the right to represent taxpayers to the IRS, and are an important asset for effective tax debt relief. Most taxpayers are not aware of the IRS’ policies and procedures, and may unknowingly enter into an agreement that isn’t affordable or feasible for them, which can lead to even more trouble with the IRS if they default on the arrangement. Licensed tax professionals are able to determine the proper course of action to take with the IRS to ensure the taxpayer is receiving the most beneficial resolution.
“It is my job, as the licensed tax professional, to make sure the IRS is following all the proper steps in making a determination. I’ve seen on multiple occasions where a client has contacted the IRS to try and reach a resolution, and they were not fully advised, so they were simply put in a resolution the IRS felt was to their advantage. As an licensed tax professional, we know what the IRS can and cannot do, and the representative would know they cannot pull that on an licensed tax professional like they would on a taxpayer.”