The IRS has a new tool that you can use when you want to settle your tax bill . The tool is a questionaire that allows you to make a compromising offer. But since this tool is used on your computer, there is one problem. You would never get the chance to use this line:
“I’d hoped that we could come here and reason together. And as a reasonable man I’m willing to do whatever is necessary to find a peaceful solution to this problem.” Don Vito Corleone (Marlon Brando) from the Godfather.
This line would have worked well if you stuffed napkins in your jowls, but since you can’t use it, let’s talk taxes. Before you can use this tool you must know your income, assets, and liabilities. So, do your homework, first before entering your name in the site. You can go through the first couple of screens to see what you need.
However, if this is too much for you, you probably are better working with a tax accountant when completing the form. Misinterpreting the terms of the site can cost you money and even qualification.
However, the most important question you can ask is whyyou are in a tax situation? Sometimes it is unavoidable circumstances like illness or loss of employment. But in my experience with people’s personal finances is that it is usually lifestyle, i.e.; spending beyond your means. It is rarely how much money a person makes. It is usually how much money a person spends that drives them into financial and tax trouble.
Therefore, the real problem is not paying off your taxes, but planning within your financial means.
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