"We can settle your IRS debt for pennies on the dollar..."


A number of people have asked me about all those ads on TV for lawyers and accountants who… “Can settle your IRS debt for Pennies on the Dollar.”

Don’t focus on their message—I will explain in a bit.

Instead focus on the NUMBER of ads and from MANY MANY new law firms. Two years ago, did you see this many ads? Did you see so many firms?

It seems the number of ads and the new firms placing them increase every day.

What does this tell you?

ANSWER: The IRS is having MAJOR numbers of people who are BEHIND and have NFTL’s filed upon them!! They are turning to their STATED “partners” in the private sector for help in getting their customers back.

[The commissioner of the IRS refers to lawyers and accountant as “partners” in encouraging compliance.”]

Ok…back to what is going-on with the ads…

The STATED goal of the IRS is regarding non-filers:

“To bring them into compliance with the filing of returns…..and to keep them there.”

Once you understand that, you will understand all these so-called IRS debt “savior” people as PARTNERS.

Here is how the game is played:

You figure out you don’t need to file a return. You do reliance or some other thing or nothing at all…you just stop filing.
Your employer files an information return on you for say $100K wages….meaning IRS thinks you owe them $30K
Maybe a second year goes by and lets say you only made $50K …meaning the IRS thinks you owe them $15K. So now you are up to $45K tops…
Let’s say you get out of the system and go contract…so now no more information returns….you’re safe for awhile.
It takes a while for the IRS to catch up. You start seeing letters asking “where is your return?”
You respond with letters saying I don’t owe….two years goes by. Still you don’t pay and they refuse to answer letters.
Eventually IRS issues a NOD…saying NOW you owe $110K due to interest and penalties. Remember …the most they could have ascertained you owed was about $45K.
Interest and penalties grow every year…
When they finally issue the NFTL it is for $140K
Now…it sits there at the county and gets picked up by every credit reporting agency. Your credit is ruined. You can’t refinance cause all mortgages are handled by Freddie or Fannie who are GOVT and insist you can only refinance if you pay off the IRS too. If you sell your house the IRS will clean your clock with THEFT at the closing table.
Now the IRS will use this to issue a LEVY on your bank account and wages. The most they will leave you for wages IF you have a ton of dependants is about $400 per week.

So along comes the IRS SEEDED guys….the PARTNERS….lawyers…accountants.
You think….Wow…they will settle the IRS debt!! Great!!
You go in there and they tell you, “We will contact the IRS on your behalf. We will negotiate down the amount. You can pay it in installments. You will have to file all past tax returns. You had better NOT go out of compliance again.” But….we will release the LEVY on your wages.
The average PUTZ falls for this….he gets his “debt” reduced from $150K to his $45K with some penalty of maybe $5K…which he has to pay over time….AND for which he had better not even think of not filing his SIG HEIL returns with the IRS.

I run into people ALL THE TIME who do this…..they tell me, “Dave…I just gave up…we got tired of seeing the letters….they threatened us…then.they were taking my husbands whole check….I contacted one of those law firms on TV….they negotiated-down the amount with the bad IRS…we saved $50K…but we have to file all the time.”

Did they save $50K….NOPE. But in the eyes of the IGNORANT they did!!

Folks…this is the GOOD GUY BAD GUY routine played out thru the IRS as BAD guy and with their IRS stated “partners” as the good guys.

What these people FAIL to realize is “The longer since you have not filed, the SAFER you are.”

Thus how close were they to freedom when they turned “to the dark side” for salvation?


Click here and I'll answer the best I can.