A $18,586.93 IRS Tax Debt Resolved With A Currently Not Collectible Status ($0 Paid)

SITUATION:

We received a call from a gentleman with an IRS tax debt. He didn’t have a clear picture of his entire tax situation. He knew he owed for various years and needed our help to investigate how much he owed, the reason for the tax debt, and to solve everything once and for all. He was self-employed, but unfortunately, his business was not in good shape.

INVESTIGATION PHASE:

We began the investigation by contacting the IRS with the power attorney and requested his transcripts going back as far as 10 years. A stay of enforcement was also requested and granted for 20 days which is a temporary hold of the collection process and protected him from a levy or garnishment being filed while we worked on his case.

During the investigation, our tax team reviewed each transcript and provided the balance owed per year. We also noticed the return for 2016 was missing even though he was required to file. Our tax team efficiently determined which forms and schedules were needed for full compliance and to ensure he paid the lowest legal amount required. The goal was to avoid the risk of the IRS proceeding with a substitute for return (SFR) for 2016. When this happens the IRS will not take into account his actual expenses and will result in having a higher (incorrect) tax balance.

RESOLUTION PHASE:

During this phase, we prepared his 2016 tax return making sure that the maximum allowable deductions by the IRS were applied. After we filed the pending tax return for 2016, the total balance for all years including penalties and interest was $18,586.93. We then reviewed his current monthly income, expenses, assets, and liabilities to find a realistic resolution for the tax liability. Based on his financial situation 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. He agreed to have us set up the CNC Status.

RESOLUTION PHASE:

Once we had all the financial support (e.g, a current profit and loss statement, bank statements, proof of expenses, a hardship letter, etc), our tax team contacted the IRS to set up the CNC resolution. After 14 days the CNC was reviewed and approved. CNC status means that the IRS places a hold on collection activity as long as his financial situation doesn’t change and he remains 100% in compliance with the IRS. The IRS could review his financial situation every one to two years to see if the financial situation has improved. He agreed to all the terms and was extremely grateful with the team, expressing he will be able to sleep at night.

CNC was set in place with the IRS as follows:

Total amount owed: $18,586.93
Resolution: Currently Non-Collectible Status
Payment Amount to the IRS: $0
Phases worked: Investigation, Compliance & 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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