EP19: How to Settle Your Client's IRS Tax Debt

Hey, it's Michael Rozbruch, Founder of Roz Strategies and Creator of the Tax Resolution Domination System and Toolkit.

And there are five ways to settle your client's IRS tax debt.

OK, let's take one of the ways, which is an Offer in Compromise. An Offer in Compromise is a legal binding written agreement between the taxpayer and the IRS that settles your taxpayer's debt in full for a fraction of what's owed in many, many cases. It's done on form 433 A OIC or Form 656.

Another way to settle your clients IRS tax debt is through an Installment Agreement.

An Installment Agreement is an agreement between the taxpayer and the IRS that fully pays your client's tax liability over time, generally over 72 months.

It's very similar to a commercial installment loan type process.

Another way to settle your client's tax debt, this third way is a Partial Pay Installment Agreement, which I like to refer to as the new Offer in Compromise or the Backdoor Offer in Compromise.

A Partial Pay Installment Agreement is an agreement between the taxpayer and the IRS that partially pays back the IRS amount over time.

Now, what's really interesting about a Partial Pay Installment Agreement is that a lot of times, the IRS is not concerned with looking towards the net equity in assets to determine what the monthly payment amount is.

And it could be a lot more beneficial than an offer in compromise because the IRS is only interested in collecting that amount over the remaining life of the ten year collection, Expiration Statute. 

Another way, the fourth way to settle your client's IRS tax debt is through a currently not collectible situation. Now, this could be a temporary Band-Aid, if you will unless you have elderly clients on a fixed income, it's a very good permanent way to settle their tax debt. But I use the currently not collectible or 53 status as a stepping stone to an Offer In Compromise or a stepping stone to a Partial Pay Installment Agreement.

And then the last way to help settle your client's IRAS tax debt is a Penalty Abatement Request.

You can either do a first-time penalty abatement verbally over the phone, or you can do a written formal penalty abatement based on reasonable cause and ordinary business care and due diligence.

Those, my friends, are the five most common ways to settle your client's IRS tax debt. I hope you got some tips from this video, and we'll see on the next one.

If you want to learn more about the lucrative nature of tax resolution, click on the link below for some free training resources that I'd like to provide to you—tax resolution as a way for you to generate profits and cash flow all year round.

And on this free training, I teach you where to find clients that have tax problems, how to attract them to you, how to take them through the initial consultation, what to charge for certain resolution alternatives, and how to collect that money all on this free training.

So if you want to learn more, if you want to gain more profits, more cash flow during the year and stop doing just cheap tax returns,

Click on the link below, and I'll see you on the other side.

www.rozstrategies.com/live-training