Dealing with the IRS can be a nerve-racking and painstaking process for taxpayers. The Tax Code is so complicated that most people feel overwhelmed when trying to work with the IRS to resolve their tax debt problems. The less knowledge a taxpayer has about taxes and the procedures of the IRS, the more intimidated they feel when it comes time to resolve their tax matters. This complexity and intimidation is an advantage for the IRS when it comes to negotiating with most taxpayers. So let’s talk about 5 secrets the IRS doesn’t like to talk about.

There are certain facts that the IRS would never readily share with taxpayers. They will shed light on the IRS’s internal strategies and processes. This month, I want to share 5 secrets the IRS doesn’t like to talk about.

No. 1: By law, the IRS has only 10 years to collect from you

The 10-year clock starts ticking when you file your return. When the collection statute expires, your tax balance goes away forever. Now, if the IRS didn’t come calling after a couple of years, it doesn’t mean you’re in the clear. It’s very possible they have yet to get around to processing your file. Be proactive in addressing your tax matter to avoid further problems down the road. It’s especially important to prevent enforcement actions, such as a tax lien or bank levy. Be aware that certain events can freeze and extend the 10-year statute.

2. The IRS is limited in what it can garnish from your paycheck

The IRS is the most powerful collection agency on the planet. However, the IRS policy and procedure handbook limit the amount of money it can take from your paycheck. Unfortunately, the IRS doesn’t always follow its own rules. So if you feel something isn’t adding up, don’t hesitate to seek help.

3. It’s highly unlikely the IRS will seize your assets

The number of IRS seizures has dropped substantially in the past few years. More cases are resolved as installment agreements or tax settlements instead. Even still, it’s in your best interest to begin the resolution process with the IRS as soon as possible to increase the chance of keeping your assets and to reduce the chance of collection enforcement. Demonstrating that you are willing to resolve your back tax issues will help facilitate a smooth negotiation process.

4. The approval percentage of an offer-in-compromise is significantly higher when submitted by a tax professional

Submitting an offer-in-compromise (OIC) is a very complex process. The tax professional must consider many underlying guidelines to increase the chances of success. An Enrolled Agent, CPA, or Tax Attorney with sufficient experience in the OIC process knows the eligibility requirements and what the IRS is looking for. During my time at the IRS, I was also responsible for processing, accepting, and rejecting OIC applications.

5. Who you choose to represent you can make a huge difference in your case

Typically, tax preparers, accounting firms, and most attorneys don’t have training or experience in handling IRS tax resolution cases. This is because tax relief work is a specialized niche that is best left to professional tax relief firms that focus 100% on tax resolution cases. To resolve past-due taxes and get into compliance with the IRS, you want to work with an organization with in-depth knowledge of tax relief matters that has successfully represented numerous clients in IRS negotiations. Since I was responsible for these types of cases while at the IRS, I chose to dedicate Landmark Tax Group to only IRS collection and IRS audit matters — tax relief is our specialty!

Want to learn more than 5 secrets from the IRS? Be sure to check out our many resources here. There you’ll find our free reports, including “IRS Debt — 10 Things You Need to Know When You Owe the IRS,” and so much more. If you’re dealing with a stressful tax issue right now, give Landmark Tax Group a call (949-260-4770) so we can figure it out together!