Is Knowledge Power? Let me know what you think after reading this.

May 17, 2022

I don’t know the name of the movie, but I saw a 1-minute reel from it.  It was a medieval setting and a man dressed in mostly black with a cross on a chain around his neck, whispered to a woman, who I think was also in black, “knowledge is power”.  She responded by telling her minion body guards to seize him and next said to cut his throat.  It went exactly so until the knife was at his neck to kill.  She said stop.  They did.  She said casually “I changed my mind, let him go”.  Then she told the minions to back up three steps and then turn around and close their eyes. Which they did.  She walked up to the man who had nearly died and said, “power is power”.  She made a brutally powerful point.  A powerful scene indeed.  I’d love to see the movie, but I have no idea what it is, or even if it’s a movie or series.  But the valid and poignant point is… Power is Power.

The IRS has Power.  When you have a tax problem the IRS has ultimate power.  They can do anything they want.  They can do things to you that if I did the same, I’d be in a heap of trouble, maybe even go to jail.  They have power.  You want a solution?  The IRS doesn’t have to do it.  They have Power.  Have you filed an Offer In Compromise?  Even if you do everything right.  They don’t have to accept it.  They have power.  You cannot force them to accept it, even if you did everything perfectly.  The IRS has power.  Your only hope is knowledge.

So, I’ve had to rethink some things.  I’ve advertised many times that knowledge is power when dealing with the IRS.  But technically, that’s not entirely true.  Knowledge is more like a tool that helps negotiate around the IRS’s power.  If you are going to take them on, you better know what appeals are available and how to use them.  You better know what they want before they want it and adjust your plan accordingly.  You can get a solution, and you can win in appeals, but you better have knowledge to get it done, because they have the power.  I can’t force the IRS to do anything.  No one can.  I can know the laws, and stop them in certain cases, by filing the right appeal or offering the correct solution, but I can’t force anything.  They have the power.  I have the knowledge on how to dance around it. 

I will probably still state that knowledge is power because used properly it can get results.  But technically, they have power, and we have knowledge.  The more knowledge the better.

If you have a tax problem, may very well be the knowledge you need.  I have three modules available that are useful tools when dealing with the all-powerful IRS.  If you need a payment plan, I’d highly recommend buying the Payment Plan tool.  For less than $100 you can know what you need to know to negotiate successfully.  Again, knowing in advance the problems that can sink you is invaluable.  Knowing in advance the lowest payment possible is critical.  You can always pay more, but you can’t pay less without permission, which many times means starting over and going through the whole thing again, and maybe ending up with a worse deal.  Like I said, get the lowest possible payment and then pay more if you can.  You need knowledge. They have power.

There are also two modules on how to submit and Offer In Compromise.  One is for wage earners, and one is for small business owners.  Both will walk you line by line through the IRS rules.  You may think you can figure it out by reading the instructions.  I guess you could if you don’t mind paying them a lot more money than you need to.  For less than $1,000 you can know the rules.  A lot less than $1,000.  The forms are explained and then line by line Todd Whalen (Founder of Advanced Tax Solutions, CPA, PC AND founder of Do It Yourself IRS Help) walks you through what the directions say, and more importantly what the directions don’t say.  You won’t find in the directions that in many cases a 401K doesn’t have to be included in the Offer (even if it’s hundreds of thousands of dollars).  You won’t read that you are allowed one month’s expenses to be excluded from cash.  But it can be.  There are many things the directions simply don’t tell you.  You have to find them in the I.R.M. (Internal Revenue Manual) and they are spread out.  If you didn’t attended conferences on how to deal with the IRS, many of them costing thousands of dollars, you simply wouldn’t know.  Again, knowledge is a great tool, as you can’t force the IRS to accept an Offer but with knowledge you can help them come to the right conclusion.  They don’t have to accept anything.  And if you offer too much?  There is no obligation by the IRS to tell you.  I have submitted so many Offer In Compromises, I couldn’t even guess, but in the decades that I’ve been doing them, I’ve never, not once, ever had the IRS say “Oh, by the way, we can decrease the amount you have to pay us, if you’d only…”  Nope. It doesn’t happen, so you better offer the lowest you can legally offer.  Or they will keep the excess and you will never know.  What a painful shame.

So, is knowledge power?  After seeing that clip pretty much dispelling that notion, I guess not. But it can still save you a boatload of money.

A good example of knowledge saving you money? The first person that emails me and can correctly identify the movie or series chapter that I spoke of in the first paragraph I will give one free course, any one module offered by Do It Yourself IRS help.  That includes the Payment Plan Module, OR either of the Offer In Compromise modules (Wage Earner or Small Business Owner).   I will give you the whole module, not just a piece.  Like I said, knowledge may not by Power, but it can save a boatload of money.  I can only give this free offer to the FIRST person who answers correctly.  I will watch the movie to make sure you nailed it, but then I’ll give you a free coupon for the module of your choice.  I’d really like to watch that movie!  Send answer to [email protected].