Caregiver Settles $135,000 IRS Debt for $4,389

SITUATION:

A full-time caregiver was responsible for supporting his ill mother and disabled sisters while managing his own financial obligations. He faced $135,000 in IRS debt, which placed significant stress on his ability to provide care. The client sought a resolution that would relieve his tax burden while allowing him to continue fulfilling his caregiving responsibilities.

INVESTIGATION PHASE:

Upon taking the case, we thoroughly reviewed the client’s income, expenses, and family obligations to evaluate the best approach for resolution. His caregiving duties and limited disposable income clearly demonstrated financial hardship.

Key actions included:

• Financial Assessment: Examined all sources of income, household expenses, and caregiving responsibilities to determine a feasible settlement amount.
  
• Offer in Compromise Strategy: Developed a plan to submit an OIC that reflected his inability to pay the full debt.
  
• Documentation Gathering: Collected supporting materials to illustrate his financial situation and caregiving obligations to the IRS.
  

During this phase, we guided the client through each step and ensured all required documentation was complete and accurate.

COMPLIANCE PHASE:

The client’s tax returns were already filed, so compliance efforts focused on verifying the information submitted and confirming that all documentation aligned with IRS requirements.

RESOLUTION PHASE:

We submitted the Offer in Compromise, and the IRS approved a settlement of $4,389, significantly reducing the client’s $135,000 debt. This resolution provided much-needed financial relief and allowed the client to focus on his family without the constant stress of IRS collections.

Total Amount Owed: $135,000
Resolution: Offer in Compromise
Settled Amount: $4,389
Phases Worked: Investigation &  Resolution

This outcome gave the client a fresh start and peace of mind, enabling him to continue caring for his loved ones while regaining financial stability.

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DISCLAIMER:
This example reflects a real client outcome. Every case is unique, and results may vary. Enrollment in our program does not guarantee a similar resolution. Our experienced tax team—which includes former IRS employees, enrolled agents, tax attorneys, and CPAs—works diligently to achieve the best possible outcome for each client. Our goal is to ensure you pay the lowest amount legally required based on your individual circumstances, finances, and allowable deductions.