Environment And Settlements.

The environment is absolutely critical to understand in settlement. Any settlement – Federal or State.

The environment is determined by elected politicians. The procedures coming down the pipeline for settlements are extremely different depending on which party is in office.

Traditionally, Democrats will favor the poor taxpayer and make procedures that encourage more settlements. Also traditionally, Republicans favor the more affluent taxpayer and do not want to let any settlements occur easily.

The Republicans made the settlement process more contentious for the prior eight years. The President spent a lot of money trying to keep our country safe from terrorism. He gave the Internal Revenue Service more authority to counter and reject settlement offers.

A Democratic President was elected in November 2008. That means the settlement procedures should become more taxpayer friendly at some point down the road. That time frame, however, is not known yet.

The States are running deficits as well.

The current environment also affects collections. The collection arms for tax agencies are being forced to levy and garnish as much as possible – even before people get to settlement. So there is concern both before and during any settlement offer.

How does a person work a settlement in today’s environment? Easily. See below.

·        Request a settlement today.

·        Never ever consider any other option. A settlement has to be the only method for solution.

·        Never take no for an answer. Work at the offer relentlessly until it is done.

The aggressive tactics above are always beneficial but more so in a Republican administration.

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