Strategy / Modern tax resolution
Financial analysis in tax resolution
Financial truth answers a practical question: what can the taxpayer actually do? Resolution options cannot be evaluated intelligently without understanding the taxpayer’s financial reality.
Authoritative record
IRS Truth
Source verified- Transcripts
- Balances
- Account history
Quantitative analysis
Financial Truth
Analyzed- Income / expenses
- Assets / equity
- Ability to pay
Documented context
Human Truth
Documented- Circumstances
- Goals
- Constraints
Evidence converged
Case State
Established caseEvidence comes in. Understanding comes out.
IRS, financial, and human truth establish the current Case State. The Case State determines strategy, strategy directs execution, and authoritative evidence verifies the observed outcome. New evidence then refreshes the Case State.
Section 01
What financial analysis covers
The relevant inputs go well beyond a single income figure.
- Income and necessary living expenses
- Assets and equity
- Cash flow and ability to pay
- Future compliance capacity
- Collection potential
Section 02
Why it precedes program selection
An Offer in Compromise, an installment agreement, or Currently Not Collectible status each depend on the numbers. Selecting a program before the analysis is backwards.
Section 03
Financial truth plus human truth
Two taxpayers with similar balances and similar numbers can still need different strategies once circumstances, timing, and goals are considered.
Next records