Tax debt of $17,024.45 resolved with a $50 Offer in Compromise

Offer in Compromise for $50.00 on $17,024.45 in debt

SITUATION:

This client called to seek help with his tax debt since he was receiving several notices in a very short matter of time. He explained to us that these notices were causing him a lot of stress since the notice had a very short time frame for client to pay this off. The client expressed to us that he did not have the funds to pay the IRS and really wanted to get this resolved.

INVESTIGATION PHASE:

The client completed his financial profile and we used this to begin the investigation process. We learned that the IRS assessed some tax years which caused the client to owe for these years. The tax balances were for the following tax years; 2008, 2010, 2011 and 2012. The total amount due including penalties and interest was $17,024.45. Since these were assessed by the IRS after they were filed, the 10 year statute of limitations (balance expiration dates) were not until 2020 – 2024. This meant that the IRS had a few more years to collect from the client. We also learned that the client did not have filing requirements as he was current with all tax years. The tax team also confirmed that this client had no liens or levy threats so there was no need to request a stay of enforcement. There was no collection agent assigned to the case which gave us time to go to the next phase and find a solution to the client’s tax situation.

RESOLUTION PHASE:

Based on the client’s income we determined that he was a good candidate for Currently Not Collectible status. A Currently Non Collectible status means that the IRS would place a hold on any collection activity as long as the client’s financial situation remained the same. Additional documents were submitted to show the client’s financial hardship. The Currently Non Collectible application was approved within a couple of weeks.

The final resolution was to submit an Offer in Compromise to resolve the tax situation. We asked for client to send us proof of financial situation, such as income, personal expenses, bank statements, etc. We sent financial support along with an Offer In Compromise to the IRS to settle the tax debt with only $50.00. An IRS examiner was assigned to the clients case and the examiner reviewed the offer. After a few weeks she determined that client qualified. The IRS examiner approved and accepted the offer. The client was very happy to learn that his tax debt was completely resolved with only $50.

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

Total amount owed: $17,024.45
Resolution: Currently Not Collectible/Offer In Compromise
One time Payment: $50.00
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 attorney, 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 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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