When that dreaded IRS envelope lands, panic is natural. But debt, liens, or audits don’t have to derail your life. Effective resolution is equal parts negotiation, documentation, and strategy.
Understanding the Letter
CP-2000, CP-504, LT-11—they all sound the same, but each triggers a different deadline. Missing even one can add penalties that snowball weekly.
Your Options, Explained
- Installment Agreement – spread payments over 72 months.
- Offer in Compromise (OIC) – settle for less if you truly can’t pay.
- Currently Not Collectible – pause collections when finances crash.
Documentation Is King
To win an OIC or penalty abatement, you’ll need:
- Form 433-A/B financial disclosure
- Six months of bank statements
- Proof of monthly living expenses
Negotiation Tactics
- Lead with honesty—agents verify everything.
- Match every claim with evidence.
- Know the “Reasonable Collection Potential” formula; offer slightly above that number to speed approval.
Life After Resolution
- Stay current on future taxes—missing one quarter voids deals.
- Automate estimated payments.
- Check transcripts annually to ensure penalties don’t sneak back.
Bottom line: Stress gives the IRS more power than it deserves. With the right guidance, you can regain control and move forward, wiser and financially stronger.
