Tax debt of $70,383 resolved with Currently Not Collectible Status ($0 Paid)

SITUATION:

A gentleman called in to seek help with his IRS tax debt of approximately $70,000. He was continually receiving threatening letters from the IRS and was in a major risk of being levied by the IRS.This was causing him a lot of stress as he couldn’t afford to pay the IRS back for what they were asking.

INVESTIGATION PHASE:

We completed an investigation on his case by guiding him to complete his financials where all expenses are identified so that his income demonstrates the lowest legal amount. We requested the master file for his account and gathered all the information as to how much he owed, for what years and all the penalties, interest he had been charged, and various other important items of information. Since all his tax returns were filed, we requested a stay of enforcement which is a temporary hold of the collection process to protect him from a levy or garnishment being filed while we worked on his case.

He had been unemployed due to the pandemic and was collecting unemployment benefits. When gathering his financial information, after thorough review, it showed that his monthly expenses exceeded his monthly income, so couldn’t afford monthly payments to the IRS. It was determined that the best option was to set up a currently not collectible (CNC) status. While the account is in CNC status, the IRS will not engage in further collection activity as long as his financial situation remains the same. With this option he doesn’t have to make monthly payments. We presented this resolution option and he agreed to have us set up the CNC Status.

RESOLUTION PHASE:

We gathered proof of his financial status like unemployment benefit statements, hardship letter, bank statements, and other important supporting documents. Our tax team organized and submitted the proper forms and followed up with the IRS for his CNC resolution. It was reviewed and approved within 14 days of our submission and request. With this resolution option the IRS will not proceed with further collection activity as long as his financial situation doesn’t change and he remains 100% in compliance with the IRS. After the statute of limitations expires, the IRS is no longer allowed to collect on the debt. That means that potentially the client could be paying back $0 on their entire tax debt as long as their financial situation continues the same. He is very grateful that we gave him the peace of mind he needed!

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

Total amount owed: $70,383.58
Resolution: Currently Not Collectible
Payment: $0
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.

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