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