$16,458.55 tax debt resolved with an Offer in Compromise for $50

Tax debt of $16,458.55 resolved with a Offer in Compromise for $50

SITUATION:

A taxpayer called in to seek help with her $15,000 of IRS tax debt. She was receiving certified notices which mentioned that a levy would be filed. On top of the tax debt she had, her mom was having very serious medical issues. All this was causing her a lot of stress and even though she wanted to take care of her tax debt, she did not have the funds to pay the IRS the amount they were requesting.

INVESTIGATION PHASE:

We completed her financial profile and used this to begin the investigation process. The master file was requested from her account so we can confirm her exact balance, penalties, and interest. The total amount due including penalties and interest was $16,458.55 for the tax year 2018. Due to the aggressive collections by the IRS, we requested a stay of enforcement which paused the collection process for a period of time.

We completed a detailed report with all the findings and our resolution recommendations based on her financial situation. When reviewing her income, expenses, assets, and liability, it showed a financial hardship with zero assets and her monthly expenses exceeded her monthly income. It was then determined that the best option was to apply for an Offer In Compromise (paying a small percentage of what the client owed).

RESOLUTION PHASE:

She agreed to have us work on the Offer In Compromise. The offer we presented to settle the tax debt of $16,458.55 was only $50.00. We completed the application and included in the package all the required proof showing her hardship. An IRS examiner was assigned to the clients case and to review the offer. After a few months he determined that the client qualified and sent the file to management for final acceptance. The IRS examiner and management approved the offer. The client was so happy to learn that her tax debt was completely resolved with only $50, that she now wants us to help with her state tax issues.

OIC was applied for and accepted with the IRS as follows:

Total amount owed: $16,458.55
Resolution: Offer In Compromise
One time Payment: $50
Phases worked: Investigation and Resolution

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DISCLAIMER:

This example is an actual example of a client who enrolled in the tax program. Every case is unique and this is not an extension that you will receive the same resolution as they will. Your situation is unique, as are all tax cases. The team has extensive experience, has former IRS employees, special officers, enrolled agents, tax attorneys, and CPAs. Our tax team will work diligently with a flat fee to solve the tax issue you have for the best possible resolution for you. That means doing all possible to ensure you pay the lowest amount of taxes legally required based on your situation, allowable deductions, finances, and other factors.