We often have clients who come to us after trying to resolve their tax issues on their own and were unable to do so without the help of tax professionals. Issues with tax balances can be complicated and can take time to resolve. We deal with different types of tax cases each month and know that every case is different. Our team at Polston Tax works to try and get the best and most ideal resolution for our clients. Here is just one of the amazing resolutions we have achieved for our clients this month!
In this case, our clients were a married couple who owned a family construction business and were being audited. They originally let a family member handle the audit for them because this family member had always helped them with preparing and reviewing their tax returns in the past. Our clients were under the impression that they were going to owe $80,000 from the audit, so they signed and agreed to the balance and waived their rights to petition tax court. It turned out that they actually owed $800,000 from the audit, and this balance was quickly assessed to them by the IRS.
The clients were completely in shock that they were being held liable for this balance amount, and for years they did not keep up with making their Estimated Tax Payments. This caused the balance to continually grow, along with their worries and stress. They were trying to deal with this on top of running their business and also having a medically disabled son to take care of and cover medical costs for. Our clients decided that they needed to do some-thing, so they tried to file an Offer in Compromise on their own with the IRS. The offer they submitted was mostly based on the value of their home, which was a very high value according to what the county assessor had previously calculated. Our clients had several appraisals done on the home to show the IRS that the value was only half of what the county assessor had said. The initial IRS Offer Specialist would not accept the appraisal value over the county assessor value, and this is what led our clients to finally decide they should get help from tax professionals to end their tax problems for good.
Our office filed an amended Offer in Compromise for our clients and negotiated with the Appeals Officer assigned to the case on why the value of the home had changed so drastically over a year. We were able to show that the appraisals had been the same value, while the county assessor value was high. After noticing the errors, the county assessor re-assessed and updated the property to show a more accurate valuation. Finally, the IRS accepted our Amended Offer in Compromise in the amount of $60,256 to resolve our clients’ $1,285,133 balance. We were able to end our clients’ IRS nightmare and save them approximately $1,224,877 in the process!
If you need help settling your tax liability with the IRS or State, call Polston Tax Today! Our team of Tax Attorneys, CPAs, Case Managers, and Tax Accountants will help you get the best resolution possible and solve your tax problems once and for all!