Sounds like you are the most connected tax guy I know….let’s stay in touch….I may need some tax help down the line…..if I have 10K outstanding with the IRS, what is the chance of me calling them up and saying “hey, will you take 5K” and them accepting? Or do you need an attorney….?

The IRS does have a program called Offer in Compromise which is basically call them up and say I will pay this much.  Only thing is you file a form and you probably need someone with some expertise to fill in the form.  Here’s the catch, the IRS is not stupid and they have the best collection agency in the world.  They are not going to deal unless they think that they are never going to get paid or that you don’t really owe the tax.  They have a long time to collect from a young guy like you and I assume you owed the tax?

So here’s what happens.   You call up some guy on TV like Tax Masters and they say “sure for $2,500 we can knock you tax down to a grand”.  You write the check, they fill in the form.  You get rejected, they say “sorry”.  The IRS got probably 20% of what you owe with the form so they have that much less to go after you for.  Everyone but you wins.  The rejection rate is in the high 80’s or above 90%, I can’t remember for sure.

So you are going to pay.  The better idea is to figure out how to screw them out of next year’s tax- that is more do-able.

This blog is a collection of questions from clients and the answers.  The goal of the blog is not to answer the questions you might have.  Most times the answers are based on each client’s personal situation.  Please do not rely on this information to make important financial and tax decisions.  The advice presented here is presented to give examples of the type of information you get as a client of a true tax professional, like Ray Simmons and the preparers he employs.  Advice regarding similar issues for you should be based on your personal situation. 

Treasury Department Circular 230 Notice. “To ensure compliance with Treasury Department Circular 230, prospective clients are hereby notified that: any discussion of Federal Tax Issues contained or referenced to in this communication is not intended or written to be used and cannot be used by the prospective client or investor for the purpose of avoiding penalties that may be imposed on them under the Code.” Such discussion is written in connection with the promotion or marketing by Ray Simmons Corporation of the transactions or matters addressed in this correspondence.


About taxdude8422

Basically I am just a tax nerd, have been all my life. However I have found the more open you are to opportunities the better off you will be in this world. That makes my what is know as an open networker on Linkedin, I will connect with anyone. I am not an expert on Linkedin by any means but one day when I was asking someone to connect I mentioned that I had just been refilled on invites. My new connect asked how I did that. I used that same line for the next month and got asked the same question four times. I started thinking there was a lot of little things it took my sometime to learn. Through this blog I plan to share some of those "Linked Secrets"
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