Tax debt of $71,420.46 resolved with a Offer in Compromise for $5,044

SITUATION:

A gentleman contacted us to get help with over $70K in IRS tax debt. He and his wife live overseas and have a steady income since they both receive social security. He received letters from an IRS revenue officer aggressively collecting on the debt owed. He also had his passport revoked and needed to have his tax debt issue solved to be able to travel. He couldn’t afford payments that were being requested from the IRS for the outstanding balance owed.

INVESTIGATION PHASE:

To begin the investigation process we assigned a case manager who helped the clients organize their detailed financial profile. When that was completed and supports like pay stubs, statements etc were provided, we sent the signed power of attorneys to the IRS. We requested the master tax file to get all account history, transcripts, income history, tax liabilities, and other pertinent information. After the tax professional reviewed all the information provided by the IRS, the exact balance with penalties and interest was confirmed and the total amount due was $71,420.46 for tax years 2014 and 2015. Due to the aggressive collections by the IRS, we requested a stay of enforcement which paused the collection process for 20 days.

When reviewing the client’s income, expenses, assets, and liability, it was determined that they show financial hardship that would qualify them for certain excellent resolutions. We presented a detailed resolution recommendation report with various resolution options, the pros and cons of each based on their current and future financials. Based on these, as well as the detailed analysis of the prior tax years, issues, and tendencies, we reviewed the potentials with the client. The best option was determined to be an offer in compromise. This also would solve their passport issue.

RESOLUTION PHASE:

They agreed to have us apply for the offer in compromise, so we proceeded to gather all documents to send to the IRS. We made an offer to have the tax debt of $71,420.46 resolved by only paying $5,044.

The Revenue Officer was contacted and provided with a copy of the offer in compromise package along with a request to renew his passport. We were informed the IRS would notify the embassy so clients’ denial can be removed. He reapplied for a passport and it was accepted within 45 days.

With help of family and friends, clients were able to gather the necessary funds while the IRS reviewed the offer we submitted. After a few months, the IRS approved the offer! Clients made a one time payment of $5,044 and $66,376.46 of his debt was forgiven!

They are relieved to have their tax issue behind them and are now able to travel.

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

Total amount owed: $71,420.46
Resolution: Offer In Compromise
One Time Payment: $5,044.00
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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