How Do You Beat IRS Collections at Its Own Game?

How Do You Beat IRS Collections at Its Own Game? Okay so with IRS collections here's the thing to keep in mind IRS collections is really about what's the best end result for the client is how much can the client afford to pay? how much does the client want to pay? and what is the IRS going to come back with based on those inputs so the easy thing about collections is you know exactly the direction it's going to go so with collections for example you know how they're going to do financial analysis you know the way that they're going to look at certain items of income you know the way they're gonna look at certain business expenses so it's very easy to understand I want to get on the five out of our mouth payment plan and it's very easy to take your clients circumstances or take your own circumstances and to go through and audit your financials and line them up on a financial statement and say this is what the orders going to look at so anybody can really fill out a financial statement there are some traps on that financial statement there's probably some information you don't want to give out but at least you've got a baseline for where your financials are and where they might need to be in order to hit your desired results the best thing that you have in the course of an IRS collections case in order to be collection is time especially for time and the ability to control some of the inputs on your bank statements so for example when we're negotiating an IRS collection resolution and we have a period of time that passes we will instruct.

The client to limit the amount of fun that they're having over three months why do we limit the amount of fun because I've got a revenue officer and the revenue officer is looking at the clients ability to and the clients going to Vegas and the clients taking vacations and the client shopping at Nordstrom's that's going to create a problem for the revenue watch so essentially what we're trying to do is sanitize financial records that the revenue officer is going to be analyzing and making sure that everything is copasetic we have control over that through the interactions with our clients you get to decide when you buy something whether you put it on a debit card or whether you pay cash for it or whatever so it's not about necessarily being dishonest because you're not being sometimes what you're doing is you're controlling the flow of information on the financials you can control the amount you spend on food you can control the amount you spend on fun you can control the amounts you spend on gas and so on and so forth and the more tightly you can control these variables the better you're gonna hit your goal with IRS collections keep in mind as well you may not hit your goal with IRS collections you may have to go to the appeals process there may be multiple ways to deal with the liability but the important thing is if you look at this from a total prospective rather than just like I got a produced financial statement you're working towards a goal if you clearly define that goal if you actually get that goal you're probably going to achieve it so that's the way to be IRS collections at its own game Up next.


Sam Brotman, JD, LLM, MBA

Owner and Director of Legal
Brotman Law