Here we answer the commonly asked tax relief question: Can I negotiate with the IRS myself? The answer is yes and in many simpler cases, there is no benefit to hiring someone to do your case.
Fixed income with no significant assets
If you have very low income and no assets you can easily get a settlement with IRS on your own. An example would be someone only receiving Social Security as income with no significant assets. Most in that situation will get an Offer In Compromise accepted easily. It might not be easier to do it yourself because the Offer In Compromise does take some paperwork. Those that do not want to do the paperwork might still want to hire a tax attorney.
Decent income and low balance
Here’s an example of a case where you might not get the tax debt settled and it might be easier to do it yourself. They are a single person that makes 80,000 annually. They owe $15,000 and all tax returns are filed. The best result for most is going to be an IRS payment plan for around $200-220 a month with a first-time penalty abatement. That can be easily set up online or by calling (800) 829-7650. See here for information on first-time penalty abatements. In this scenario, you would spend less time just setting it up yourself than dealing with a tax relief company or tax attorney.
Complex financials, self-employed, or make a lot of money with huge balance or you don’t like doing forms
If someone has complex financial information it might be easier to hire a tax attorney to deal with their case for them. Same with self-employed individuals, whose financials are often complex as well.
Another time it might be worthwhile to hire a tax attorney is with large tax balances where the person makes a large amount of money per year. An example would be someone who makes $200,000 but owes $500,000. The IRS is going to require a financial statement. If its not prepared right, it can result in a much higher per month payment.
IRS Fresh Start makes things easier
For many people, the best solution is one of the IRS Fresh Start payment plans and those can easily be done yourself. See our video link below regarding the latest for 2021.
See our video below for a video explanation on negotiating yourself with the IRS.
Make sure to check out our free back taxes help guide for information on setting up your own Offer In Compromise, payment plans, and penalty abatements.
If you need additional help you are at the right place. You can post a question on our site. Or on one of our videos and one of our expert tax attorneys will answer your questions. If you want someone to do the whole case for you, schedule a tax attorney consultation by clicking here.