Tax Debt Of $8,271.60 For $0 (Currently Non Collectible Status)

Tax Debt Of $8,271.60 For $0 (Currently Non Collectible Status)

SITUATION:

A woman contacted our tax team for assistance with her tax debt issues. She explained that she owed about $17,000 to the IRS. And she felt that it was because of the IRS disallowing her claiming of her children as dependents on several years of returns. As is often the case, the client hadn’t received all the alleged communications that had been sent by the IRS in mail. The client was very stressed, and her communications with the IRS just lead her to be more frustrated.

We gave her a free tax case analysis. In it, we reviewed her unique situation and talked about some potential options. We explained the importance of taking action ASAP to avoid garnishments and levies. We talked about our guarantee to get her a solution for the tax problem. We talked about the incredible experience in the tax team – our enrolled agents, CPA’s and tax attorneys.

We continued to explain the importance of doing a full and detailed investigation so that the problem is solved once and for all. In it we present:

• Total amount of taxes owed per year – many times clients either owe more or less than they think. It’s critical to have the accurate balance.
• The reasons the IRS and/or State has for the assessment of taxes.
• Details of the taxes owed, interest, and penalties assessed.
• By what dates each year’s liabilities will be exempt based on the statute of limitations. This is very important because by knowing this we can recommend the resolution that saves you the most money.
• Identify any missing or substitute filed returns. This is important because just solving this might even result in solving the tax issue or getting a refund.
• Identify the status of all collection activity, including liens, levies, holds and pending enforcement action. This is critical to do all possible to avoid surprise levies or garnishments.
• Determine if a revenue officer or other tax collection agent is pending to be assigned soon. This is critical to get on the phone with them and request a stay of enforcement to get more time.
• Determine the financials as per income, IRS valuation of assets, and what the IRS has for allowable expenses. We also work together to build a case for why assets are not accessible so that the IRS would exclude from your financials. This is critical to qualify for the best possible resolution. We have a detailed 100 point checklist we use internally to ensure your financials are the best possible to qualify for the best resolution(s).
• Identify what is needed to become tax compliant that must be done prior to starting the resolution.
• Recommended a resolution plan or several options with the reasoning why, and target time frame for accomplishment of each.

The client immediately saw the benefit in doing a thorough investigation before starting work and engaged us for the work.

INVESTIGATION PHASE:

In the investigation, the tax team coached client on completing their financials. Then we applied our 3-step proprietary process to maximize any and all legal and allowable deductions so that client would qualify for the best possible resolution. We take into account the client’s hardship. And for borderline cases, we work to build a case the IRS will accept so that the revenue officer or manager can approve the best possible resolution for client. If client has assets, we look at the possibility that they are not accessible, again to qualify client for best possible resolution.

After also pulling the case files and account transcripts and requesting a stay of enforcement to give more time, the 16-page+ investigation report was compiled.

The initial great news was that the debt was determined to be only $8,271.60.

A lot of information and analysis was provided, but as a summary, the recommended solution for client was a currently non collectible status. This is where the client pays nothing and as long as their financials do not get much better, eventually the statute of limitations expires and the client can stop paying.

RESOLUTION PHASE:

As the final resolution (which we guarantee in the agreement), our tax professionals diligently prepare and submit the resolution. In this case the resolution was a currently non collectible (CNC). If it requires back and forth with the IRS or management approval, we continue to follow up until approved. If it requires appeals, we follow up to do all possible to get it approved.

The CNC was approved and the client was overjoyed. They could put the debt of the tax issue behind them and start living again!

Tax Case Summary:

Total amount owed: $8,271.60
Resolution: Currently Non-Collectible
Monthly Payment: $0.00
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 there is no expectation that you will receive the same resolution as they did. 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 CPA’s. 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 everything possible to ensure you pay the lowest amount of taxes legally required based on your situation, allowable deductions, finances, and other factors.