My guest blogger today is Dagny Kight.  She just completed a step-by-step guide to help people through the process of determining on their own if they can settle their tax debt for a lower amount.

Will the IRS lower your tax debt through “negotiation”? Tax resolution firms would like you to believe they can talk the IRS down on your behalf.

But the IRS likes to talk about just two things: Dollars and cents.

Under new IRS guidelines introduced in 2011, the IRS has a program that is designed to calculate your ability to pay your back tax debt. There is no “negotiation.” The forms for this program will take you through a detailed Financial Disclosure, documenting your income, expenses, assets, and debts. No matter how you ultimately settle your IRS tax debt, you will have to provide a full financial disclosure. This will involve gathering up all your bank and account statements, documentation for all your sources of income, monthly bills, loans, mortgage or lease paperwork, and even documentation for the market value of your assets including vehicles and valuables.

When I settled my own IRS debt for $1, I worked directly with the IRS examiners themselves. They weren’t intimidating; they were actually a pleasure to deal with! They told me what information they wanted and how they wanted it sent in with the IRS forms. I put everything I learned into my ebook, Lower Your IRS Debt with step by step, easy to follow instructions based on my own successful experience with this IRS program.

I owed $42, 564.25 but I settled for $1! Start gathering up your financial paperwork and grab a calculator. Follow along with my ebook to fill out the forms for yourself and find out if YOU could Lower Your IRS Debt!

Daniel Stoica Accounting Professional

My guest blogger today is Dagny Kight. She has an upcoming ebook called Lower Your IRS Debt which will help individuals with a step-by-step process to determine on their own if they can settle their tax debt for a lower amount.

Are you old enough to remember when we bought magazines through the mail in the hopes that the Prize Patrol would show up with a giant check? The marketing strategies of the famous publishing house sweepstakes are perhaps best remembered by the tagline, “You may have already won!” The ambiguous catchphrase led many people to believe they were indeed the lucky winner!

Tax resolution firms make heavy use of direct mail. You may have already started receiving their letters, particularly if the IRS has filed a Federal lien against you. The envelope will be made to look official. You will be urged to “Respond Immediately! Important Information About Your Tax Debt!”

When you open the letter, in many cases it will be from a company with a generic name like “Tax Resolution Specialists” or “Tax Settlement Department.” They will get the amount of your tax debt from public records so it will look like the letter was written just for you. The letter may claim your IRS debt can be lowered to maybe a third or even a quarter of what you owe. When you’re faced with an IRS tax debt, you may want to rush to the phone and call right away for a deal that good!

The ads are very persuasive because tax resolution firms try to charge thousands of dollars. If their fee and the amount of savings they claim they can get for you are many thousands of dollars less than your total IRS debt, wouldn’t you be tempted to sign on the dotted line? That’s what tax resolution firms are counting on!

Remember these two important facts:

1. NO ONE can “estimate” what your tax savings might be without calculating your complete financial disclosure.
2. NO ONE can guarantee how the IRS will decide when they review your complete financial disclosure.

I have an upcoming ebook, Lower Your IRS Debt, which will help you calculate your own financial disclosure and submit an application to the IRS for review. No matter how you ultimately complete your tax settlement, a complete financial disclosure will be required. I’ll take you step by step through the process I used successfully to lower my IRS debt from $42,564 to $1!

Daniel Stoica Accounting Professional