| You can save on professional fees by handling your | | | | Secondly, working with the IRS can also be very |
| own case, but know that there are many advantages | | | | emotionally draining- and the taxpayer may be too |
| to hiring a qualified tax professional to represent you | | | | frightened, frustrated or intimidated by the IRS to |
| before the IRS. Taxpayers may always represent | | | | effectively or comfortably to negotiate a settlement. |
| themselves before the IRS. However, many taxpayers | | | | Most taxpayers are far happier to keep their distance |
| find dealing with the IRS frustrating, time-consuming, | | | | from the IRS and prefer to leave the sparring to their |
| intimidating or all of the above. | | | | advisors. However, dealing with the IRS is not always |
| The one advantage of taxpayers representing | | | | as painful as you may imagine. In fact, most IRS |
| themselves is that they will save professional fees. | | | | officers are reasonable and helpful, particularly when |
| And for most taxpayers this is no small matter. | | | | they see you are making an honest effort to resolve |
| However the amount of fees saved may be dwarfed | | | | your tax problems. |
| by the actual tax settlement. In this case, the taxpayer | | | | Another drawback of taxpayers working directly with |
| must look at the total financial picture to determine | | | | the IRS without professional representation (tax |
| how much money they may be leaving on the table if | | | | resolution firm, specialized tax attorney, etc) is that the |
| they do not have expert representation. In this case, | | | | taxpayer may slip up and inadvertently make |
| the age old adage, "Penny wise and pound foolish" | | | | statements that can make the problem worse - and |
| should be top of mind. | | | | perhaps trigger an audit or even criminal prosecution. |
| There are many disadvantages of a taxpayer | | | | Professionals know where to draw the line. The |
| representing themselves. First of all, the taxpayer does | | | | taxpayer may make statements that can create tax |
| not have the professional’s expertise and will not | | | | liability for their spouse or business associate. |
| know the tax relief options available or how to get the | | | | And finally, the taxpayer takes valuable time away |
| lowest settlement allowed by law. For instance, if you | | | | from their work and family to wrestle with their own |
| are considering applying for the IRS Offer in | | | | IRS case. Doctors, dentists, lawyers, executives, |
| Compromise program, it’s important to note that 4 | | | | successful business owners, and other high-income |
| out of 5 Offers in Compromise submitted by the | | | | taxpayers will do appreciably better paying a tax |
| taxpayer are rejected by the IRS. Additionally, many | | | | professional while they more profitably pursue their |
| taxpayer-negotiated settlements offer the IRS much | | | | own occupations. |
| more than is required by law. | | | | |