Issues with tax balances can be complicated and can take time to resolve. Sometimes it requires waiting months for the IRS to respond and sometimes it means meeting deadlines to get certain documentation in. 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 are two cases that we were able to resolve this month!
Case #1: When family members pass on, they sometimes will leave money or property in a trust for family members to receive. For our clients, their tax trouble started when they received money through a trust their grandfather had set up for them. They got advice from a local accountant on how to claim the money for tax purposes, but when they filed their return, they found out they owed thousands of dollars. When they came to us, they had tried to file an Offer In Compromise themselves and the offer was rejected. Our first step was our team went and got a collection hold on our client’s account so that they wouldn’t be levied while we put together their financials. We also requested a First Time Penalty Abatement for our client. That was approved and knocked over $13,000 off their tax balances. Next, we looked through their financials and because they were a student and didn’t have a lot of income, we proposed a Partial Payment Installment Agreement. We provided bank statements, bills, and other documentation showing our client didn’t have the means to pay off their taxes owed. The IRS agreed and we secured a $25/mo. Payment plan for our clients, saving them over $82,000 altogether!
Case #2: A bad accountant can not only mess with your money, but they can also cause you to owe tax balances. Unfortunately, that is what happened to our next client. Their accountant had messed up several of their tax returns and our client ended up owing a large sum to the IRS. She tried doing her taxes on her own and ended up not filing a few tax returns, which only added to her tax balances. When she came to us, she was desperate for help. The first thing we did was pull transcripts of her account to see what years she owed for and how much she owed. Once we did that, we started preparing the missing tax returns. The IRS will not negotiate a tax resolution unless you are compliant and have all your returns filed. Once we had her complaint, we put together a financial analysis and determined that she would possibly qualify for an Offer in Compromise. We put together the paperwork and filed the offer. It took over nine months for the IRS to respond, and when they did, they rejected the offer. We appealed this rejection and had to wait several more months for the IRS to assign an appeals agent. Once we had an agent, we submitted more documentation proving our client’s financial hardship and her inability to pay her taxes owed in full. The IRS agreed and our offer was approved saving our client over $226,000!
If you need help settling your tax balances 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!
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...
The winter holidays are fast approaching, and employers across the country are preparing for their yearly office parties. If you’re thinking of celebrating your workplace, you might be eligible for more tax deductions than you realize. Are company holiday parties tax-deductible? The simple answer is yes, as long as they meet a specific set of...
There are many times when life throws obstacles at you, especially when you least expect it. Sometimes things happen in people’s lives that cause them to not file their tax returns on time – or even at all. This is exactly what we are here to help you with, and for our first client we...
We often get clients who come to us after attempting to deal with the IRS on their own, and things don’t turn out how they had imagined it being without having the help of a tax attorney. Case #1: In our first case, our client had gained filing compliance and fully paid off her taxes...
Case #1: Our first client was a business owner who was going through a bad divorce. She had purchased the property for her business under her personal name, and unfortunately her ex-husband had been commingling the business expenses with their personal expenses for years. This is one of the biggest red flags that the IRS...