This is Part 4 of a 6 Debt.com series on taxes authored by Charles T. Almond of Tax Closure.
When a taxpayer receives an IRS Notice of Balance Due many thoughts cross their mind. Owing back taxes and having a short, defined period of time to pay (30 days usually) means options are limited. While the perception of the IRS being kinder and gentler may give taxpayers in this predicament some hope, being ill equipped will only make matters worse. There is a very common thought process among taxpayers who owe back taxes that basically suggests, “I have nothing to hide, I’ll just call the IRS and come clean. I do not have the money for representation but I think if I can just call and talk to them myself, I can ease the pain.”
Naked self-representation in IRS collection matters is optimistic but proves to be most ineffective. The IRS collection procedures aren’t natively known and even tax professors, CPAs and regular accountants seek out much needed help. Throughout my career, I have met many taxpayers who attempted to represent themselves without any knowledge or insights into the IRS collection procedures and it did not go well. Their intentions were good but in almost every case they were ill prepared and simply threw themselves on the mercy of the person they would speak with at the IRS because they could not afford the high cost of representation.
It is hard enough for someone dealing with the pressures of an IRS Notice of Balance Due and not having the means to pay. Adding thousands of dollars in professional fees to that is simply not an option in many cases. However, there are now ways taxpayers in such a position can communicate with the IRS themselves and gain back control of their lives and finances. By teaching taxpayers how to properly communicate with the IRS (with the proper knowledge, the correct forms, and easy to learn financial basics) most people can resolve their issues with the IRS on their own. When the IRS is going through the Notice of Balance Due cycle with a taxpayer or their company who owes back taxes, the person still has time to eliminate the ill effects.
With the new software program TaxClosure.com, taxpayers can learn how to exercise their rights as a taxpayer and have all the information they need with step-by-step instructions on how to communicate with the IRS. TaxClosure.com is a product of my company Taxpayers Clinic, and it is the creation of 28 years of successful taxpayer solutions. Taxpayers Clinic is comprised of an impressive network of former IRS Collection Division employees who all contributed to put together this revolutionary program, which costs a fraction of what the “tax settlement” firms charge for (in many cases) the mere promise of representation.
TaxClosure.com works to help taxpayers apply for “Currently Not Collectible” (CNC) status, which is generally available to approximately 90% of all taxpayers. This will stop the IRS from pursuing you or your business because it puts you back in good standing. Using the information, easy to understand instructions and videos in TaxClosure, most taxpayers can resolve their back tax problems the same day they start the program. The informed taxpayer can now communicate properly and directly with the IRS and make an effective job out of representing himself or herself. Empowering taxpayers with the knowledge they need to get CNC status or worst case . . . an affordable payment plan on their own eliminates the need to pay thousands of dollars to hire representation who in most cases won’t know this subject as well as those that buy and experience TaxClosure for themselves.