5 ms·
That is not true at all, small businesses and even individuals get a chance to negotiate, I have done so myself. You clearly have no experience in this matter,
by megy 9y ago
That is not true at all, small businesses and even individuals get a chance to negotiate, I have done so myself. You clearly have no experience in this matter, and the IRS may actually deliberately perpetrate that myth.
- agumonkey 9y agoprobably a distortion over legal actions being toyed with by deep pockets when smaller groups or individuals will get crushed
- arikr 9y agoTell us more?
- godelski 9y agoCould you please elaborate?
- deleted 9y ago[deleted]
- khedoros1 9y agoI know that there are ads on the radio for law/accounting firms that will negotiate back taxes with the IRS for their customers. The theory being: If you haven't paid taxes in a decade, the IRS would rather have $1000 from you now than $0 from you ever. Someone that I know personally worked with an accountant in the past, who was able to negotiate a similar deal. I haven't ever been involved in it myself, so I'm not familiar with the details.
- markdown 9y agoEven on the principle? I've negotiated successfully to reduce or scrap penalties for things like late return lodgement or late payment, but never had them budge a dime on the tax owed.
- throwaway613834 9y agoI think you mean "principal"? (Got very confused reading your comment since I thought you were objecting to the concept in principle.)
- markdown 9y agoOoops, you're right of course. My mistake.
- sjg007 9y agoI would probably depend on how you calculate what is owed.. You have one theory and the IRS has another etc...
- seanmcdirmid 9y agoThe IRS makes mistakes also, e.g. your foreign tax credit gets lost. Their collections people are super understanding, it made a very stressful time much more bearable.
- charlesdm 9y agoGenerally things get fuzzy when analyzing multiple laws together, which leaves room for interpretation. One simple hypothetical example: capital gains are taxed at 20%, unless investing is your profession, then it is taxed as income at 40%. Seems easy enough, right? Random guy A works as a part time teacher, making $20k a year (taxed at 40%) but also makes $1m a year from investments (taxed at 20%). It is a ridiculous example, but what is your profession? Are you a teacher, thus paying 20% on your investments? Or are you an investor, having to pay 40% on all of your gains? You can be certain your friendly local tax authority wants to classify you as an investor. And you want to be classified as a teacher, thus paying the lower rate. But it could also be a loophole for a wealthy person to avoid taxation at 40%. Unless they are certain they will get it right in court, there's a good chance you could make a deal and settle your dispute.
- mlindner 9y agoI will second having done this myself. There was a disagreement between how the tax credit for Obamacare/ACA was being taken by my mother versus I because I was transferring from being covered under her insurance to being covered under my own. The IRS said I owed more than I did because the tax credit couldn't be used twice, while my mother and I disagreed we bickered back and forth with the IRS for about a year but they gave up and let us count it.