IRS Transcripts Monitoring and why it’s necessary.

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Follow your Transcripts Regularly

Why IRS Transcript monitoring is Important.

IRS Transcript monitoring is a very useful tool. It’s a tool that allows us to follow what the IRS has done and may do. The IRS follows a fairly strict process or order in which things happen. IRS Transcripts show by code and a short description a sort of history of your account. Transcripts also show what the IRS is about to do when someone enters in a code that triggers an event. Sometimes well know a week or two before it’s coded to happen.

Time is your most important ally when negotiating with the IRS concerning tax debt. Monitoring the IRS Transcripts can be very useful in finding out what the IRS is up to. This often will give you extra time to prepare, especially when you understand how the sequence of events takes place.

Watching the IRS Transcripts and following the Codes.

Following the IRS Transcripts codes is an essential part of what a skilled tax resolution specialist should be doing. As a Resolution Specialist I follow clients transcripts every day for those who are in the middle of collection activity. Weekly or monthly for everyone else as needed. This provides me an advantage. Being able to respond to an IRS action before it happens and heading off the IRS. Monitoring Transcripts provides another level of protection for the Client.

As an individual you can obtain the transcripts from the IRS directly  https://www.irs.gov/pub/irs-pdf/f4506t.pdf   however, reading them could be problematic probably due to not understanding the codes and descriptions. As a Tax Resolution Specialist I would need to get a Power of Attorney from the client to access these records. Once I have access to them I can follow them as often as needed.

Links to IRS Power of Attorneys and Instructions

POA:  https://www.irs.gov/pub/irs-pdf/f2848.pdf

Instructions:   https://www.irs.gov/pub/irs-pdf/i2848.pdf

How monitoring IRS Transcripts affects the IRS letters  and notices that you receive.

IRS letters and notices usually address three areas,

  • How much you owe.
  • When you’re going to pay.
  • How you’re going to pay.

For most taxpayers their first concern should be the “When”. This is because that the “When” affects the “How”. If you don’t have the money to pay the “When” then the “How” becomes the most important problem.

Most taxpayers who receive these notices start right away to fix the “How” and don’t know that the “When” can usually be changed and should be, again using time as your ally.

An IRS Agent once told me “the money they have today is gone tomorrow”. One of the IRS’s strategies is to use dates that are relatively quick because they understand that the element of surprise shortens the time that a taxpayer can do something with an Asset.

The IRS doesn’t tell you about the “When” but it can be a very important tool in negotiations. A skilled Tax Resolution Specialist can often get a different date further out and sometimes much further out so to help the taxpayer get control of their debt problem.

IRS Transcript Monitoring often allows me to see in advance

IRS Transcript Monitoring often allows me to see in advance what the IRS is about to do. This information allows me to contact the IRS ahead of the action allowing me an opportunity to get an action cancelled or changed which may or could change the entire way a resolution is handled.

Everything that I talk about in this post is about helping the taxpayer client get as much control of their situation as possible. Transcript monitoring can provide the taxpayer days, weeks, months and sometimes years of being able to hold off the IRS as well as buying time so that a Taxpayer can be in a better financial picture for the best resolution possible.

Reviews

I would like to add by relating the experience of some of my clients as well as some reviews where I have read about Nationwide Tax Resolution companies like you may listen to on popular talk shows. I’m informed that these companies often just fill out the IRS forms and send them in without much or any studying of the clients options or any consequences of the “When” not to mention any strategy.

Most people who call a tax resolution company don’t know what questions to ask. I recommend that when you’re interviewing a prospective tax resolution company you make sure that you are getting a full service and any price that they quote represents that full service. Many companies will quote you a price for the initial service or just filling out and submitting the forms and then after they have you hooked they’ll come back more money.

Thanks for reading.

About John

John E. Jones, EA is an Enrolled Agent enrolled by the US Department of Treasury and has been granted the privilege of representing taxpayers before the IRS. John's specialty is general tax debt resolution and more specifically representing extreme hardship cases and seniors with compliance and resolution.
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