[it’s] not a test of negotiating skills. People who hold this incorrect assumption think they can just lowball the government, stick to their position, perhaps walk away from the table once or twice, and come out with a great offer amount. In reality [it’s] a matter of simple math.
Secrets from a tax resolution company salesperson. A true story.
I worked in the tax resolution field for over 20 years and have spoken to thousands of people who are part of the millions of Americans that have the IRS chasing after them for past due taxes. I would hear the desperation in their voices. I would listen as they would explain all of the reasons for their predicament. None of that really mattered. Every case was similar. There was a past due tax liability – and the IRS wants the money owed and will seek to collect. If not voluntarily, through an Installment Agreement or an Offer in Compromise, then involuntarily, by bank and/or wage levy.
My job was easy. I’d tell them how big and bad the IRS is and explain to them that I can “make them go away.” I would tell them that we’ll “stop the levies, handle all of the communication with the IRS” and either place them on an Installment Agreement or more often, I would stress that our skilled team would “negotiate” a settlement allowing them to only pay “pennies on the dollar.” I would paint the blue sky and then request that they pay me the ‘small’ amount of anywhere from $3,500 to $10,000. Yes, $10,000. The fee was often dependent on how scared and desperate they seemed. I’d also take into account their cash flow and income level and how much they owed the IRS.
I didn’t tell clients that all cases are handled the same way and take the same amount of time no matter how much they owed.
It’s not a negotiation
The truth is that submitting an Offer in Compromise is a NOT a negotiation. It’s a simple formula based on a financial statement which takes an assistant about 20 minutes to fill out and submit to the IRS. I would never tell them that I do not handle the cases myself – as I’m actually a commissioned salesperson. Once you sign up, I get my fee and your case is sent down to a ‘case worker’ who simply inputs information (information that you provide) into a form.
6 Simple Questions. Free Evaluation.
Join our Newsletter
Enter your email address to join our free newsletter. Get all the latest news and updates.