Lowering tax obligation claims

[Lot249]

New Jersey
Does anyone have experience using organizations claiming to lower or eliminate tax obligations, and were they successful in doing so?

I’ve listened to a number of ads by organizations claiming to help reduce (past or present) tax obligations. Not knowing the details, some of their claims seem unrealistic. Short of simply reviewing tax returns for errors or omissions, they claim to “negotiate” with the IRS to lower one’s tax obligations.

I’m curious, if these claims are legitimate, it begs the question why the IRS doesn’t “negotiate” with the person directly rather than a third party?

 

[davew9128]

The IRS doesn't "negotiate" anything on its own accord. It doesn't need to.
The law ALLOWS IRS to compromise a tax debt for less than the amount if the taxpayer meets certain criteria and it wouldn't be against public policy to do so. It does happen. It's just not easy to do, and rightly so.

 

[adjusterjack]

it begs the question why the IRS doesn’t “negotiate” with the person directly rather than a third party?

It's called "offer in compromise."

Google it.

 

[LdiJ]

New Jersey
Does anyone have experience using organizations claiming to lower or eliminate tax obligations, and were they successful in doing so?

I’ve listened to a number of ads by organizations claiming to help reduce (past or present) tax obligations. Not knowing the details, some of their claims seem unrealistic. Short of simply reviewing tax returns for errors or omissions, they claim to “negotiate” with the IRS to lower one’s tax obligations.

I’m curious, if these claims are legitimate, it begs the question why the IRS doesn’t “negotiate” with the person directly rather than a third party?

Most, if not all of the companies who advertise on TV are what we in the tax profession call "offer mills". They charge 4-6 thousand dollars to submit an offer in compromise to the IRS, with only a very small percentage of them that are ever approved/accepted by the IRS.

 

[FlyingRon]

Yep and two of them have been disbarred (or voluntarily gave up their law license) over false advertising claims.