From time to time every taxpayer will go head to toe with the Internal Revenue Service. Whether you are setting up an installment agreement, facing the auditor from hell, resolving a misunderstanding, or dealing with collectors on the phone or worse yet, on your doorstep, please heed the following suggestions.

1. You get more flies with honey. Remember what Mom used to say! Dealing with bureaucracy can be very frustrating. Especially now when the IRS has experienced so many budget cuts that customer service is at an all time low. Blame Congress not the overworked agent on the other end of the line. Park your bad attitude and anger at the door. Take a deep breath, demonstrate a cooperative attitude, and proceed in an orderly fashion. This will give you an advantage in resolving your issue. In my long career of dealing with the IRS, I have found that most IRS personnel are compassionate humans that will bend over backwards to find ways to resolve issues and help taxpayers. It’s true! It’s not like you won’t ever run into that power-hungry, condescending, or surly agent from time to time. If you do, you can always trade up to a more understanding and respectful model. Just ask for the manager.

2. Use IRS lingo. When you use IRS lingo the person you are speaking with will find you knowledgeable and may treat you with a little more respect. Here is some verbiage you may find useful:
a. Ask for penalties to be “abated” rather than removed.
b. Tell them, if it’s the case, that your failure to (pay or file or comply with a document request) was due to “reasonable cause.” Use this term if you didn’t just flake and have a good reason, which could include such things as unemployment, losing your records, losing your home, health problems, etc.
c. If you can’t pay a tax bill because you are suffering financial reversals you can ask to be deemed “Currently not collectible.” If you are granted this status, they will leave you alone while you get it together.
d. If you feel a spouse or former spouse should be responsible for a tax matter, ask to be treated as an “Innocent spouse.” There are certain criteria to determine if you qualify for this status. Do some research or discuss the issues with your tax pro to find out if you qualify. Because if you do, the IRS will not attempt to collect from you and instead will go after your former spouse.
e. If defending business deductions during an audit, the term “ordinary and necessary” business expense will help – but only if that’s really the case.
f. If you owe a lot of money, perhaps you qualify for the “Fresh Start” program. This program helps taxpayers resolve their liabilities by using more lenient guidelines.

3. Don’t talk too much. IRS agents are trained to draw as much information from you as possible. Answer questions truthfully, but keep your answers short, succinct, and to the point. There is no need to elaborate or discuss your personal life or disclose too much. This will only lead to misunderstandings and possibly investigations.

4. Always tell the truth. Lies have a way of uncovering themselves. Once you are caught in a lie, you will always be suspect. And when you are suspect, you lose the cooperation you would normally receive. Don’t hide assets, don’t run for cover. There are many ways to resolve tax problems using a straightforward and honest approach. Bear in mind that lies can lead to jail time.

5. Only make promises you can keep. This is especially true when it comes to paying your liability. If an IRS agent asks you if you can pay $200 per month on a tax balance and you know damn well that you can only afford $100, tell him so. Indicate that you will try to pay extra when you can. But you are not going to set yourself up for failure by promising more than you are able. If it’s the case, then add that you have always timely filed and paid liabilities in the past and now you need a break. Note that this will not work if their analysis of your financial situation indicates you can pay more.

6. Go to them before they come at you. If you are unable to keep a promise you make, call them and let them know immediately. They are usually so happy with the cooperation they will likely grant you the extensions you need. The collections department notes your file whenever you or your representative calls.

7. Stop the Interview. If at any time during an audit or a phone conversation you feel intimidated, disrespected, or out of your depth, simply say so and end the interview. Tell the IRS that you will be seeking representation and will get back with them soon. This will give you a chance to take a deep breath and discuss the matter with your tax pro. If you felt disrespected, you can always request a different agent. Or if it was a matter of a surly customer service rep you were speaking with on the phone, you can back in hopes of getting someone kinder or a little more understanding.