Table of Contents
Case #1:
Tax problems can be stressful and complicated and can even be further complicated when the IRS makes mistakes regarding your taxes owed. One client we were able to help this month dealt with several setbacks due to mistakes made by the IRS. He was self-employed and had set up an installment agreement himself, but it soon defaulted as our client could not afford the high monthly payment. His wife was seriously ill, and his business was not doing well, and our client was desperate to get his tax balances settled. Once our client came to us, we went through his finances to see which type of resolution would best fit his financial situation. Because our client had too much equity, we decided a Partial Payment Installment Agreement (PPIA) would be best. We worked with the IRS to come up with an affordable monthly payment and we were able to get the payment plan approved. Months later, our client got threatened with a levy because his plan defaulted. Turns out the IRS did not include the most recent tax year and so the additional balance defaulted his agreement. We contacted the IRS and were able to set up the same agreement for our client. Unfortunately, a year later, our client’s estimated tax payment was wrongly applied to his tax balances and the IRS defaulted his payment plan due to them believing he did not pay his quarterly taxes. We contacted the IRS about their mistake, and after a few months of continually contacting them, the IRS fixed the payment and let our client once again, set up the same PPIA he was in before. Luckily, our client has been able to stay in the installment agreement and saved over $70,000!
Case #2:
Our next client got into trouble for forgetting to pay his taxes on his retirement withdrawals. He had originally set up an Installment agreement, but it defaulted when he owed additional balances for his retirement withdrawals. Shortly after retaining our firm, our client lost his job and the IRS then tried to levy his bank account in order to get payment for his taxes owed. We appealed the levy and then scheduled a Collection Due Process Hearing with the IRS. We set the date for the hearing and then put together our client’s financials to see what he could afford. We took the financials to the IRS and showed our clients inability to make payments as he was unemployed and had no income coming in. The IRS agreed and placed our client into Currently Not Collectible status and saved him almost $100,000 in the end.
Additional Readings
William is an Oklahoma native, raised in Skiatook but living most of his life in Tulsa. He graduated from Bishop Kelly High School and is currently attending The University of Oklahoma to get his degree in accounting with a minor in finance. William is also part of the Native Organization at his school. He felt...
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