Independent Real Estate Contractor Pursues Relief on $80,000 IRS Debt

Independent Real Estate Contractor Pursues Relief on $80,000 IRS Debt

SITUATION:

The client, a single woman working as an independent real estate contractor, accumulated $80,000 in IRS debt after struggling to keep up with estimated tax payments and additional W-2 income tax obligations. Despite her efforts, she found herself with limited income and no financial margin at the end of each month. CuraDebt was engaged to help her pursue a resolution that aligned with her true financial capacity.

INVESTIGATION PHASE:

Our team carefully reviewed her income, expenses, and assets to build the strongest case for relief. Key actions included:

  • Financial Review: Evaluated her monthly income and living expenses, confirming that she had no disposable income to make payments.
  • Property Evaluation: Assessed both her primary residence and a second property, determining that neither had usable equity or generated any income.
  • Offer in Compromise Submission: Prepared and submitted an OIC that reflected her inability to pay the full tax balance.

COMPLIANCE PHASE:

We ensured all tax returns were properly filed and verified that her financial disclosures were consistent with IRS requirements before submission.

RESOLUTION PHASE:

The IRS initially denied the OIC due to her ownership of a second home, despite it having no equity and not producing any income. We immediately filed an appeal, presenting evidence of her hardship and inability to pay. The appeal is currently under IRS review, giving the client another opportunity to achieve a fair resolution and regain financial stability.

Total Amount Owed: $80,000
Resolution: Offer in Compromise (appeal under review)
Phases Worked: Investigation, Compliance & Resolution

This case demonstrates how persistence and professional representation can make a difference for taxpayers facing hardship, even when initial IRS decisions are not favorable.

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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.