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How to Determine if You Need Professional Tax Help to Resolve Your IRS Problems and Negotiate Your Tax Relief Settlement

April 21st, 2010 | Tags: Determine, Help, Need, Negotiate, Problems, Professional, Relief, Resolve, Settlement

You can save on professional fees by handling your own case, but know that there are many advantages to hiring a qualified tax professional to represent you before the IRS. Taxpayers may always represent themselves before the IRS. However, many taxpayers find dealing with the IRS frustrating, time-consuming, intimidating or all of the above.The one advantage of taxpayers representing themselves is that they will save professional fees. And for most taxpayers this is no small matter. However the amount of fees saved may be dwarfed by the actual tax settlement. In this case, the taxpayer must look at the total financial picture to determine how much money they may be leaving on the table if they do not have expert representation. In this case, the age old adage, “Penny wise and pound foolish” should be top of mind.There are many disadvantages of a taxpayer representing themselves. First of all, the taxpayer does not have the professional’s expertise and will not know the tax relief options available or how to get the lowest settlement allowed by law. For instance, if you are considering applying for the IRS Offer in Compromise program, it’s important to note that 4 out of 5 Offers in Compromise submitted by the taxpayer are rejected by the IRS. Additionally, many taxpayer-negotiated settlements offer the IRS much more than is required by law.Secondly, working with the IRS can also be very emotionally draining- and the taxpayer may be too frightened, frustrated or intimidated by the IRS to effectively or comfortably to negotiate a settlement. Most taxpayers are far happier to keep their distance from the IRS and prefer to leave the sparring to their advisors. However, dealing with the IRS is not always as painful as you may imagine. In fact, most IRS officers are reasonable and helpful, particularly when they see you are making an honest effort to resolve your tax problems.Another drawback of taxpayers working directly with the IRS without professional representation (tax resolution firm, specialized tax attorney, etc) is that the taxpayer may slip up and inadvertently make statements that can make the problem worse – and perhaps trigger an audit or even criminal prosecution. Professionals know where to draw the line. The taxpayer may make statements that can create tax liability for their spouse or business associate.And finally, the taxpayer takes valuable time away from their work and family to wrestle with their own IRS case. Doctors, dentists, lawyers, executives, successful business owners, and other high-income taxpayers will do appreciably better paying a tax professional while they more profitably pursue their own occupations.For more advice and information on reducing your tax debt, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.

Michael Rozbruch is one of the nation’s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances. For helpful tax tips and information, visit Michael’s blog, Tax Resolution University