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What is the first step in negotiating with the IRS? Compliance.

By
Services for Real Estate Pros with Serna Tax Solutions, LLC

The first thing everyone asks about their IRS debt is "can we negotiate it down"?  While the answer may be "yes", the IRS will not even consider your offer or your payment plan agreement if you are not in "tax compliance".

What does this mean in IRS language?

In order to be in "compliance" with the IRS, it means that you are current on at least the last 6 years of tax returns and that you have paid or are actively paying in all of your actively accruing taxes.

If you are a W2 employee, that means that you are having taxes withheld from your check.

If you are self employed, that means that you are making your quarterly SE payments.

If you are a business with employees, it means that you are current with your payroll tax payments and quarterly filings. 

If you are not in "compliance", the IRS will no even discuss options with you.

Need help determining your best option moving forward, or getting yourself into compliance?  I am happy to talk with you.  Feel free to reach out and we can discuss your personal situation, or set up a consultation to determine a plan of attack to begin handling your tax debt. 

Be well, 

Sabrina Santos-Serna

Serna Tax Solutions, LLC

www.SernaTax.com

Sabrina@SernaTax.com

(559) 512-1012

Madera and Fresno, CA

Disclaimer: Nothing in this article is to be considered tax advice. You should always consult with your personal tax and finance team to determine how these issues may or may not apply to you, and what your personal best plan of attack is.

Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Sabrina, I have an amazing tax person who is a former IRS agent.  And she tells me that real estate professionals have a reputation for being the worst when it comes to being tidy about their taxes.  She has whipped me into shape, and it feels soooo good!

Sep 14, 2020 02:29 PM
Sabrina Serna

Patricia, I hope your friend gets a good ottle of wine!  Sounds like she has you lined out and in great shape! Bravo! 

Sep 15, 2020 10:42 AM