How mediation can be used to soften the blow of negotiating with the IRS

Individuals and business organizations having outstanding tax balances can face severe consequences from the IRS. If you face such a problem and require negotiating with the IRS to settle the dilemma it is wise to hire a professional having expertise in such a matter.

Before going into how to select the best mediator for such negotiation let us show how mediation can help you in such cases.

How do professional mediators help to negotiate with the IRS?

A mediator is a person having professional training in the mediation process and who works with you and the IRS representative designated for the case. They help both the parties to reach an amicable solution by:

• Enabling communication between both the parties, in this case between you and the representative of the IRS.
• Help to recognize the issues and barriers to a proper settlement.
• Help to find out amicable settlement terms.
• Offering perspective and encouragement.
• Help to have a uniform play field and develop mutual respect while mediating.

The process of mediation they follow has the following characteristics:

• The mediation process is voluntary for both you and the IRS.
• The process is 100% nonbinding. It means that both parties have full control over whether to resolve the case on exam or to settle the case in appeals in the manner conceived.
• The mediation can be effective if both parties agree to resolve the dispute.
• It is appropriate when all other issues have perfect resolution except the issue for which the help of a mediator is required.
• It offers a chance to avoid drawn-out appeals process and costly litigation.

Mediation is not a replacement for the audit. It is not a process where parties involved can offer arguments directly to the mediator with the hope to win. The process of mediation can only help if both parties believe that the best way to end the dispute is when both parties acknowledge that they can move from their initial position. Mediation is not a process to get a little better deal or to purchase time before the case closes by the IRS.

Now you have a basic understanding of how the process works. The question becomes on how to have a professional mediator while negotiating with the IRS.

How to select a professional negotiator

There are certain red flags that you need to keep in mind when you try to select the best negotiator to have professional help.

If you notice that a negotiating firm is promising a quick resolution without exploring all of the facts associated with your case, then it is wise to avoid hiring that firm. If you notice that the representative of the firm does not try to understand why the IRS has taken the position they have, then fit will be hard for the mediator to help you with the negotiation. 

Michael Gregory from Michael Gregory Consulting LLC is a reputed negotiator and mediator  who offers professional help while negotiating with the IRS. He will listen to you and the IRS, dig deeper into the important financial data from the client before stating what he can do while negotiating or mediating with the IRS. He has been in business addressing these types of issues with clients for over 10 years and has a reputation in the community. Call him at (651) 633-5311 to book an appointment.