You Need Professional Tax Representation When You Have a Problem with the IRS (even if you don't think you do) (Part 1 of 2)

And here's why.

The IRS is a powerhouse, equipped with all the tools necessary to make your life miserable if you owe them.

But when it comes to negotiating back taxes, many taxpayers adopt the "head in the sand" approach, hoping that by ignoring the letters, the problem will vanish.

Spoiler alert:

It won't.

Let's say it how it is, the IRS isn't going to tell you the best way to negotiate with them, what options you have and where there's an opportunity to get ahead.

They aren't focused on compassion.

You don't know the rules and the IRS knows that!

Their job literally is to collect money (from YOU) so they're not particularly concerned with your financial welfare.

Edit: They're not concerned at all.

That's why you hire a tax attorney or other professional with IRS representation rights.

You need someone on your side who knows how to play their little game. Someone who understands the tax code and the IRS manual.

You need someone to level the playing field.

When a tax attorney gets involved, well, things change. Now the IRS must recognize and respect that someone on your side DOES know the rules.

Professional representation is crucial because it provides a much higher chance of a more favorable outcome and most importantly, will shield you from harm.

Hiring a Tax Professional,

1. Puts Your Mind at Ease;

2. Creates a Buffer;

3. Makes the IRS Respect You; and

4. Levels the Playing Field.

Keep reading for the details.

1. Putting your Mind at Ease

Most taxpayers freak the eff out when they get a letter from the IRS. And their reaction is not necessarily wrong....

At the very least, professional representation provides peace of mind that you can't get elsewhere. When you have a tax problem, peace of mind is gold.

Tax professionals know the rules, they know what's not allowed, and they're looking out for your best interests. A tax professional allows you to focus on your family, work, and other important aspects of your life.

Anything but your tax problem.

2. A Buffer Between You and the IRS is Created

Number two, goes part and parcel with number 1. Professional representatives act as third-party intermediaries between you and the IRS, effectively protecting you from the emotional toll of being directly involved in extended IRS negotiations.

Taxpayers tend to go nuts (that's putting it mild) when they talk to the IRS.

It doesn't end well.

A tax professional brings objectivity to the table, which is crucial when dealing with IRS.

3. The IRS Now has to Respect You

It may surprise you to know that the IRS actually welcomes professional representation. Tax Professionals understand the deal so they're able to help streamline the IRS representative's work process and facilitate a resolution in an orderly fashion.

Speaking from the other side, when I negotiate with the IRS, I tell my clients that I'd always rather deal with an asshole that knows what they're doing as opposed to Mr. Nice Guy who doesn't have a clue.

Usually Mr. Nice Guy without a clue ends up levying your bank account because he or she doesn't know the rules.

Mr.Nice Guy who lives on mars makes everything harder.

The process takes more time, and practical order is thrown out the window. There's a way of doing things during these negotiations.

When you don't know that way, things get messy.

Between protecting you from the IRS desire to bulldoze over your rights and their appreciation for negotiating with someone who's done it before, professional representation generally leads to a more favorable outcome for you.

4. Leveling the Playing Field

The IRS is actually just a big collection agency. However, the IRS has more power than any other collection agency in the world which gives them a massive advantage over you.

They have no incentive to guide you to the most favorable resolution. In fact, because they're supposed to be trying to collect YOUR money, they are incentivized to screw you over.

A professional representative helps shift this balance of power because they know IRS law and they know IRS procedure and that's what the whole negotiation is based on!

Clients seem to think the negotiation is like a negotiation with a used car salesman when he calls over his manager.

Surprise!

It's not.

The IRS is a labyrinth of procedures, rules, and regulations. The reality is you don't know what you don't know and what you don't know can and will hurt you.

Your tax professional knows how to play the game.

They level the playing field.

You might not know the rules, but they do.

And we use that knowledge to your advantage.

In the battle against the IRS, you want to shift the massive power advantage the IRS has back into your favor (or at least make it even).

A professional tax representative does that.

Thank you for taking the time to read this week's edition of Resolving Tax Debt.

We'll finish up my list of reasons for making sure you have professional representation if you have a problem with the IRS next week in Part 2.

I appreciate you.

P.S. Have you had a tax problem where you hired a tax professional? This goes for you as the taxpayer but also for other accountants with clients who have had tax issues.

If so, what was your experience?

Let me know in the comments!