Single Mother Settles $45,000 IRS Debt for $2,500

SITUATION:

A woman in her 50s, serving as a single mother and caregiver, faced a $45,000 IRS tax debt. The client’s limited resources and caregiving responsibilities made it difficult to manage her obligations while maintaining her family’s well-being. Her main goal was to achieve a resolution that allowed her to regain control over her finances and plan for the future.

INVESTIGATION PHASE:

After onboarding the client, we carefully reviewed all relevant financial records, including income, monthly expenses, and family obligations. This analysis helped us determine a realistic strategy for resolving her debt while minimizing the financial impact on her household.

Key actions included:

• Financial Assessment: Evaluated her income, expenses, and dependents to identify a feasible settlement amount.
  
• Offer in Compromise Strategy: Developed a plan to submit an OIC based on her inability to pay the full amount.
  
• Documentation Gathering: Collected all necessary supporting materials to demonstrate her financial situation to the IRS.
  

Throughout this phase, we kept the client informed and guided her on providing the required documents, ensuring the submission would be complete and persuasive.

COMPLIANCE PHASE:

In this case, the client’s tax returns were already filed and in order, so the compliance phase focused on confirming that all information was accurate and consistent with the IRS records.

RESOLUTION PHASE:

We submitted the Offer in Compromise, proposing a settlement of $2,500. After careful IRS review, the offer was approved, significantly reducing her debt and relieving her of a major financial burden.

Total Amount Owed: $45,000
Resolution: Offer in Compromise
Settled Amount: $2,500
Phases Worked: Investigation & Resolution

This settlement allowed the client to move forward with a clean slate, rebuild her financial stability, and focus on her family and future without the stress of overwhelming tax debt.

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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.