Case 3: Currently Non Collectible on $425,546.42 in debt
A taxpayer called in with an IRS debt of $419,000,00. The IRS had done an audit on the Taxpayer’s account for over a year. Due to the amount of debt a Revenue Officer (RO) had been assigned this case and even went to visit them. The audit was done for tax years 2010, 2011, 2012 & 2013. The balance was assessed due to a handcraft business.
We proceeded with the Investigation Phase of the program and after a thorough study was completed by our tax team, it was determined that the total amount of tax debt totaled $425,546.42.
Our tax team contacted the IRS with the signed Power of Attorney. We requested customer’s master file from the IRS. A Stay of Enforcement (hold) was granted for 30 days. A Stay of Enforcement halts the collection process for the approved amount of time. After the investigation was done it was determined that compliance work was needed for tax years 2013 & 2014. We couldn’t proceed with an resolution until the returns are filed.
During this phase our tax team requested the taxpayers wage and income information from the IRS. With this information the missing tax returns were filed. Our tax team proceeded to gather as much proof as possible and completed a study of clients financial situation. Since the taxpayers were not receiving any profit from their business anymore, they had more losses than wins, our tax team provided a detailed report of the information discovered along with a resolution recommendation for Currently not Collectible (CNC). While the account is in CNC status, the IRS will not generally engage in collection activity and as long as taxpayer’s financial situation remains the same they won’t have to proceed with monthly payments.
The Revenue Officer (RO) that was assigned to the case asked for numerous documents like: Profit and Loss statement, copies of proof of mortgage, interest statements on both homes, proof of health insurance, proof of the secured debt, proof of cell phone, 6 months of bank statements etc. We gathered all documents requested and sent the package to the RO. The reviewal of the case took several months, more proof was requested and sent. The Revenue Officer finally approved and place the account in Currently not Collectible status. The taxpayers will not have to make monthly payments and will maintain in the CNC status until their financial situation changes or the debt reaches a CSED date.
CNC was set in place with the IRS as follows:
Total amount owed: $425,546.42
Resolution: Currently Non-Collectible
Monthly Payment: $0.00
Phases worked: Investigation, Compliance, and Resolution
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.