Owing Back Taxes to the IRS

[MN Guy]

Hello Everyone

I'm new to this formum and I'm looking for some advise. I currently have my life and P & C License. I'm currently appointed with Foresters, Forethought, Trans America and 5-Star. I have been in the business for about a year and a half concentrating on final expense sells, and then try to market those clients to P & C.

Getting to my question. I'm wanting to start working with some other carries, because I'm starting to market some larger Life Cases. I tried to get appointed with MN Life, and got declines due to back IRS taxes that are in a non collectable status.

How do I go about getting appointed with some of these important carriers, that more spicialize in IUL's and Estate planning compies?

I was reading on here of possibly just becoming a General Agent, What does that actually mean? I know I can work with my upline who brought me into this business, but obviously he would need to sign the clients application, and really should actually meet him as well.

It just would be nice if I could sign the applications so I don't need to worry about chasing down my commission from my upline.

I know some are going to ask, why didn't you pay your taxes, well I was in Real-estate and got nailed when the markets crashed, I feel horrible about it, so now I'm trying to get caught up.

Any great advice would be appreciated

Thanks

Monty

 

[senior-advisor-indiana]

I'm not sure if this will work but it won't hurt to try....... Pay your taxes.

 

[Norwayguy]

Hello Everyone

I'm new to this formum and I'm looking for some advise. I currently have my life and P & C License. I'm currently appointed with Foresters, Forethought, Trans America and 5-Star. I have been in the business for about a year and a half concentrating on final expense sells, and then try to market those clients to P & C.

Getting to my question. I'm wanting to start working with some other carries, because I'm starting to market some larger Life Cases. I tried to get appointed with MN Life, and got declines due to back IRS taxes that are in a non collectable status.

How do I go about getting appointed with some of these important carriers, that more spicialize in IUL's and Estate planning compies?

I was reading on here of possibly just becoming a General Agent, What does that actually mean? I know I can work with my upline who brought me into this business, but obviously he would need to sign the clients application, and really should actually meet him as well.

It just would be nice if I could sign the applications so I don't need to worry about chasing down my commission from my upline.

Any great advice would be appreciated

Thanks

Monty

What is an uncollectable status with the IRS? Many carriers will frown on you submitting applications just signed off on by your up line. I know this is not the advice you want but many of the carriers you will want for the better markets will look at how you run your own finances before allowing you to make recommendations on someone else's it's cya.

 

[MN Guy]

What I mean by uncollectable, is simply I don't feel there is no possible way to pay it back with the enormis interest rates the IRS charges. I owe approximately 60K

I agree A lot of carriers will frown. I have talked to my upline, and also the IMO and they say it's not a big deal. Well I do feel uncomfortable with this. I do feel if this is going to take place, I should have my upline actually present at the time the application is getting signed by the client.

 

[senior-advisor-indiana]

What I mean by uncollectable, is simply I don't feel there is no possible way to pay it back with the enormis interest rates the IRS charges. I owe approximately 60K

I agree A lot of carriers will frown. I have talked to my upline, and also the IMO and they say it's not a big deal. Well I do feel uncomfortable with this. I do feel if this is going to take place, I should have my upline actually present at the time the application is getting signed by the client.

I would say $60k in back taxes is a big deal to most carriers especially if there is no payments being made on it. Are you doing anything to take care of it? Not trying to sound rude. I don't know what I would do if I owed that much...

 

[goillini52]

I'm sure that I've seen that you can negotiate a settlement with the IRS. Seems like they'll take less than 1/2 to get something. I'm surprised they haven't put a lien on you.

 

[LGilmore]

Unfortunately you are too big a risk for some of these insurance carriers to take on, especially knowing you have an "uncollectable debt" (is that your determination or theirs?). If they take you on, and somebody is harmed by your advice, how many pounds of flesh would they take from the insurance company for hiring someone with an uncollectable debt?

You could be a great guy, but honestly, you're not worth the risk down the road.

Sorry.

 

[MN Guy]

I appreciate all the honest replies. One question I do have is however is in a different post someone mentioned just being a general agent???? How is a general agent different that being a regular agent?

I know with my P & C I never got directly appointed with the 7 companies I represent, however I do sign the application as the acting agent.

Also in these larger IUL's- Estate planning cases, our in house Estate Attorney as well as our case design manager and Underwriter will be assisting in 100% of the whole process.

Thanks Again.

M.

 

[goillini52]

I appreciate all the honest replies. One question I do have is however is in a different post someone mentioned just being a general agent???? How is a general agent different that being a regular agent?

I know with my P & C I never got directly appointed with the 7 companies I represent, however I do sign the application as the acting agent.

Also in these larger IUL's- Estate planning cases, our in house Estate Attorney as well as our case design manager and Underwriter will be assisting in 100% of the whole process.

Thanks Again.

M.

As far as I know, they're the same. Don't know about P&C.

 

[djs]

Contact an IRS attorney. You should be able to reach a settlement agreement with the IRS, which will allow you to get at least some additional appointments.

While I don't have first hand experience (fortunately), from the tax people I used to have an office with, the IRS will work with you to find a way to get the debt taken care of. They will settle for substantially less in some cases as well. You need to get a payment plan going though, a tax attorney is the best thing to do on this.

P&C is a tough gig when you have that large of an outstanding tax problem without an approved plan in place. Chances of an appointment with a standard or preferred carrier are pretty low.

Dan