Good Day Readers, we are going continuing to discuss where we left from our Last Part.
So, Lets start to discuss our Third Example “Moving Up“.
You dutifully mail in your federal tax form by midnight, April 15. You’ve answered every question like an Eagle Scout, falsifying nothing. 
2 Month’s Later, you receive a modified form letter from the Internal Revenue Service. The IRS wants you to visit a Local office at 10:00 A.M. the Following Thursday. There are discrepancies that need straightening out.
Your stomach wraps around your spine. You idiotically fantasize that you must be guilty of something.
Use your head. Stop being emotional. Let your stomach relax. No one’s going to flog you with a truncheon. In actuality, you’ll be treated with exaggerated respect. You’ll get the “Kid Glove Treatment“.
Carrying pertinent records and canceled checks, you drop by the IRS office at 10:00 A.M, per instructions. You tell the receptionist your name, then glance over his left shoulder.
Rows of desks pop into focus behind him. Seated over his left shoulder. Rows of desks pop into focus behind him. Seated at each desk is an individual with an electronic calculator, a pad of paper, tax-table books, and a serious, kindly face. Remember 4 things about these auditors:

1. They’re simply doing a job — and not making much money at it.
2. They dislike paying taxes as as you do. When it comes to their own taxes, they probably fudge a trifle to the same extent as the general populace. In fact, some of them are also audited.
3. If not very imaginative, they tend to “go by the book,” thinking in general terms, rather than specific applications.
4. And here’s the biggie: Despite electronic calculators, what they do is subjective and evaluative. It’s anything but objective, air-tight, and fool-proof. In brief, your interpretations and evaluations may be as valid as theirs. If you doubt this, consider the well-publicized instances, each year, in which ear-marked returns have been shuttled past 8-10 auditors. Have the “Test” auditors, stirring the same broth, cooked up the same figures? No. The figures have been unbelievable — almost laughably — divergent.

As you wait for your name to be called, you double-check what you’re wearing to make sure you aren’t overdressed.
You should never dress like a fashion plate when entering an IRS office.
Don’t look like a bum, but also don’t resemble the front cover of Gentlemen’s Quarterly or Harper’s Bazaar. The person you deal with will feel comfortable with you, and friendly toward you, only if he/she can identify with you. 
( This is a psychological insight sharp trial lawyers cash in on so they won’t turn juries off. Some leave their hair in need of a trim; others don’t shave too closely; and still others let their shoes get scuffy.) 
Your name is called. simultaneously, a designated auditor steps forward to greet you. At this point — and throughout the transaction — your attitude is one of pure “Help me!“
You Personalize yourself, coming across as a reasonable, likeable, friendly human being. Are you argumentative? To the contrary. Are you defensive? Absolutely not. You’re there to be cooperative. Butter wouldn’t melt in your mouth.
The auditor says, There are 4 things I want to discuss with you: 

1. Your charitable contributions;
2. The figure you put down for home depreciation;
3. Your enhancement of your property through extensive additions;
4. The amount of money you claim you sent in as a quarterly Tax Payment. 

You clear your throat. This may be tougher than you anticipated. But need it be? No. Just play it cool.
The Auditor continues, “I’d like to see verification of the $900.00 you put down on your return for charitable contributions.“
“No Problem“, you reply. “I have the canceled checks right here, in this envelop.“
The auditor thumbs through the checks, concurrently depressing buttons on the desktop calculator. “These only total $360.00. How do you account for the other $540.00?“
Your answer is as sincere as it is quick. “I faithfully go to church every Sunday. Each Time, I drop $10 in the collection Plate.“
“52 Times a Year?“
“Without fail. That comes to $500“.
“What about the remaining $40.“
You don’t even bother to clear your Throat. “That was for Girl Scout cookies, hand-outs to kids soliciting funds for Little League Baseball, and so forth. I probably should have put down $60 for all that.“
“Hmmm…” comments the auditor. “That’s hard to believe. No one’s that generous!” 
You shrug. ” I am” .
“I’m going to put a question mark next to that $540.00 figure,” says the auditor.
Note the situation here. The auditor can’t prove that you didn’t drop $10 in the plate each Sunday or dispense money to Fresh-faced youngsters. That’s strictly a matter of judgement of what is reasonable. With respect to matters of judgement, the IRS doesn’t have you ” Dead to Rights,” as the saying goes. There can always be an appeal to a higher-level.
The Interaction continues. The auditor claims your home-depreciation figure should reflect 12 year period. You politely disagree, reiterating that the figure should reflect an 8 year period.
You stick to your guns, like Stonewall Jackson at the Battle of Bull Run. Nothing can budge you.  
Does the IRS have you dead to rights? No. This, too, is a matter of judgement. This, too, can be appealed.
Having scrawled a 2nd Question mark with a Magic Maker, the auditor, a literalist from the word “Go,” proceeds.
“You enhanced your Property by $2,000.00 when you made the additions spelled out on Page 4 of the typewritten sheets attached.” 

What happened Next Let’s See in Next Part.
“Negotiating Anything, Any Place : Moving Up ( Part 5 )” 
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