Thursday, November 29, 2007

Tax Negotiation vs. Tax Argument


Contrary to what some may believe, there is a difference between negotiating with the IRS and arguing with the IRS. It's common sense that when you negotiate, you are trying to resolve an issue by utilizing a "win-win" approach. This is advantageous when attempting to settle a debt with the IRS. But all too often, an angry and misinformed taxpayer will try to argue their way to some type of resolution...utilizing the "lose-lose approach".....or maybe the "lose-now we are going to put a levy in place and take your paycheck" approach. Whatever you want to call it, it is not the path to be taken. When it comes to tax negotiation, remember what your mother probably told you: "You get more bees with honey than you do with vinegar."


Here is one of many common tax arguments: “Filing a tax return is ‘voluntary.’”

The word "voluntary," as used by the IRS , refers to the fact that the U.S. tax system is a voluntary compliance system. This means that the taxpayers are able to determine the correct amount of tax pursuant to law and complete the appropriate returns, rather than have the government do this for them. This system of self-reporting does not make the filing of tax returns or the payment of tax optional. For those who do not comply with this system and fail to self-report their tax liability, the tax law authorizes action to be taken.


Trust me, the IRS has heard every story in the book and have burned each chapter 9 times out of 10. 2 certainties in life: death and taxes. Stop trying to prove otherwise. If you owe a tax debt, try to resolve the issue rather than arguing it and making life worse for yourself. If you truly feel that an injustice has been made against you and the IRS is to blame, it would be in your best interest to seek out the assistance of a tax attorney or tax resolution firm.


Cheers!

- Taxus

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