Negotiating with IRS can lower settlement cost

Radio and TV ads claim that if you owe the IRS more than $10,000, they can help you settle the debt for pennies on the dollar. There has to be a legal angle. What do you think? — B.G.

It may be possible that what these companies claim can happen. The IRS allows that if you can demonstrate that you have very little money, you can negotiate a much lower settlement cost. The mechanics are a little complicated, and that’s why these companies specialize in this type of activity, but it can be done in many cases. Oftentimes, this type of negotiation is the appropriate way to go.

Please share the names of safe mutual funds you can invest in without the services of a broker. — J.N.

There are a number of mutual funds, perfectly viable and perfectly safe, that are sold directly to the purchaser. These funds can be easily researched, and you can request material on each fund. These funds are rated, and you can determine the safety of this kind of transaction.

I have no problem with doing this, but it does require some work on your part. I should point out that there are some good funds that can be purchased without any fees and some good funds available for a modest fee. You should investigate both.

Find out how they invest their money and their track record over the last three or four years.

There is nothing wrong with either kind of fund, but don’t be dissuaded from paying a small commission if you find a fund that otherwise is acceptable to you.