Every month we have clients come to us asking for help resolving their tax issues. They owe the IRS or the state or both. Owing taxes is a lot more common than people think- no case is the same and each resolution looks different for our clients. Here are two cases we closed in August 2021!
Case #1: Cryptocurrency has blown up the last couple of years and with the new currency, comes some new type of tax problems. For our client, he started trading in cryptocurrency and made some money off his trades. Unfortunately, our client didn’t know how to report it on his tax returns and ended up reporting it wrong. He received a notice from the IRS letting him know that he had underreported his income and the IRS had assessed him for more taxes along with penalties and interest. When he came to us, he wasn’t sure how to fix the issue as he didn’t make as much as the IRS claimed he did because he kept trading. Our first step was to amend his tax return so that we could correct the errors he made on his original tax return. Once we amended the return, we turned it into the IRS so they could process it. When his amended tax return was processed, we sent additional documentation to the IRS to prove that our client didn’t make the amount they claimed he did and so, therefore, did not need to pay the taxes the IRS had assessed. The IRS agreed with our documentation and so our client no longer had the tax debt and ended up saving over $193,000!
Case #2: One of the most common professions we see end up in trouble with the IRS are truck drivers. Because they are typically paid without taxes withheld and because they have a large amount of tax deductions, if they don’t have a good accountant, they could easily fall into tax debt. That’s what happened with our next client. While we were trying to get all his missing tax returns filed, we decided to put him into an installment agreement temporarily while we figured out his financials. He also owed money to the state, so we quickly worked to get that resolved as well. After we got all his tax returns filed and processed, we ended up being able to get him into Currently Not Collectible Status after putting together his financials and determining he really had no money left over after he paid his bills. A few years later, our client didn’t pay his taxes and ended up being taken out of his Currently Not Collectible Status. He came back to us for help resolving his tax problems once again. We were able to re-do his financials with updated numbers and due to him being in an accident, our client could no longer work and that’s why he wasn’t able to pay his taxes. We were able to provide substantiation to the IRS to prove that he was still dealing with financial hardships and they agreed and placed him once again in Currently Not Collectible Status. This saved him over $125,000!
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!
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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