$140,226.36 IRS Tax Debt Resolved with An Offer in Compromise in 24 Installments of $875
SITUATION:
A couple called our office with a very stressful situation – the IRS had issued a notice of Intent to Levy and had placed a lien on their property. The husband was a 25% shareholder in a small business and was required to make quarterly estimated tax payments, but never did. They informed us they had been dealing with a different company for over 4 years and the matter was still unresolved. They found out everything owed was being transferred to the wife’s taxes, and she is now the one responsible for paying this large debt. The IRS sent various notices, but all deadlines were missed, so collections were becoming more and more aggressive. The debt they thought they had was $133,000.
INVESTIGATION PHASE:
We proceeded with the investigation phase by gathering all the client’s financial information and all the supporting documents., we provided a signed power of attorney to our enrolled Agent in charge of the case contacted the IRS after having a clear picture of their finances and as part of the process, our Enrolled Agent requested a stay of enforcement to prevent further collection activity. This was approved for 30 days, giving us enough time to complete the investigation. We also requested their master file to review and organize a report with details of how much was owed per year including penalties and interest, expiration dates of each debt and history of collection activity, etc.
We reviewed the transcripts to make sure the client was tax compliant with the IRS, meaning all tax returns were filed, and that was the case! It was determined that she was in compliance with all her tax returns and owed a total of $140,226.36. This amount was indeed showing on their personal files, and it was due to not making estimated tax payments for many years. We provided an organized investigation report with the findings for each year, along with a recommendation from the tax professional on ways to resolve this tax debt!
RESOLUTION PHASE:
They were thrilled with our recommendation and decided to move forward with the offer in compromise. We started to gather information such as recent bank statements, proof of income, proof of expenses, etc. An explanation of the circumstances letter was also provided. We put together the Offer in Compromise package and submitted to
An IRS examiner was assigned to the case and after several months the examiner accepted $21,0000 and sent it for management approval! Needless to say, they were ecstatic with the outcome. Once the offer was verbally approved, 2 months later the acceptance notice was received. Making sacrifices and with help of family members, they are paying $21,000 over 24 monthly payments of $875. They are so grateful for all we did and our timely assistance in resolving this matter.
Total amount owed: $140,226.36
Resolution: Offer in Compromise $21K in 24 Payments of $875
Phases worked: Investigation and Resolution
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