Can You Negotiate Your Back Taxes With the IRS?

In the classic film from the nineteen nineties, Clueless (directed by Amy Heckerling), a teenager named Cher (played by Alicia Silverstone) is the only daughter of a wealthy Los Angeles lawyer. Click here for more information about the IRS.

In one key scene, Cher delivers a revised report card to her father. She had negotiated, or, in her words, argued, her way to higher grades.

“An A in forensics? Up from a C?” Her father asks in disbelief.

“That’s right. Are you proud of me, Daddy?” Cher asks.

Her father looks her in the eyes.” Cher,” he says, “I couldn’t be any prouder if these reflected actual grades.”

 

According to Cher’s father, everything in life is negotiable. It seemed to be working perfectly well for him. He was the head of a large, prestigious law firm. He lived in a mansion in one of the most expensive real estate areas in the country. And he didn’t settle for less than what he deserved, even if it meant barking at a fifteen-year-old to get out of his chair.

That’s because he had the confidence to ask for what he needed and take it when it became available. If you can gather a little of that same confidence, you can have it too. Click here: for information about tax payment options.

So, can you negotiate your back taxes with the IRS? I have a story to tell that might answer the question.

One Woman’s Journey

My Grandma Charlotte was an amazing woman. She started her own salon in the basement of her home in the suburbs of Chicago more than seventy-five years ago. It quickly became a neighborhood meeting spot. Women gathered together for more than just the opportunity to get their hair done; it was also a chance to catch up with each other.

Most of them were housewives with little social interaction outside of their families. Charlotte was a born networker, loving to dive into conversation for hours on end. People gravitated towards her because of her big laugh and even bigger heart.

When her husband George, my grandfather, was alive, he was the one who made sure all of the taxes were paid. He was also a small business owner. He created a business that bought, sold, and repaired large appliances like washing machines. As time went on, he added more appliances to his roster and more people to his sales team. Click the link for more information about small business taxes.

One of these people eventually included my father, who loved working with his father and learning everything he had to teach.

So, when tax time came around, it was more than a little complicated. But it was a different era, and instead of working on it together, Grandpa took care of everything. There was never a problem in the more than thirty years that Grandma owned her own salon.

When Grandpa died of colon cancer in the 1990’s, everything changed.

It somehow slipped through the cracks for both of Charlotte’s adult children that she had never learned how to pay taxes on her own. In fact, she wasn’t aware that she had to pay taxes. Everything had been taken care of for her entire adult life.

So, she just didn’t pay her taxes. When the bills came, they just got lost under old photographs and little slips of paper. Maybe some of them were under the circus peanuts she always had laying around.

Nobody knows why she had them. They were gross. Why are they banana flavored and shaped like a peanut? Plus, hers were always stale as hell. But I digress.

It was more than ten years before someone discovered what had been going on. It was only when Charlotte was threatened with jail time that she finally realized the letters she had been avoiding were important. She showed them to her son-in-law, my uncle, who was a lawyer at the time.

The bill was staggering. Charlotte was on fixed income. There was no way she could pay it back in one lump sum. Click here for a description of where your tax money goes.

Luckily, she had an advocate working on her behalf. He was able to present a financial picture to the IRS and negotiate for a payment that was possible for her to make every month.

My story has a happy ending. My ninety-year-old grandma was not sent to prison over her unpaid back taxes.

Making Moves

You will also not be going to prison over your back taxes. Do you know how I know? Because even if you don’t have a handy son-in-law to fix the problem for you, there are plenty of resources available to you to help you in the same way.

First, take a deep breath. This is not as intimidating as it seems. Picture the IRS in their underwear, if it helps. If it doesn’t, then don’t.

Next, it’s time to sort out your options. There are many companies and firms that specialize in just this sort of negotiation. It’s time for you to take to the internet to look for the best tax relief companies reviews and start from there.

Once you find one that sounds like a good fit, go ahead and give them a call. They’ll be able to walk you through the process step-by-step.

So, take a cue from Cher’s father. Know that if you stand your ground, you’ll be able to get what you need for yourself and your family. Dig in and don’t let go until you get what you want.

You can always consult with an accountant for a moderate fee in order to avoid these problems in the future. No one likes the feeling of being behind or in error. Just don’t find one like Matthew Broderick’s character in the 2005 film The Producers. He ended up getting Nathan Lane’s feisty character in more trouble than he solved!