Case #1: Having multiple years of tax returns missing can always spell trouble for taxpayers. Not only will the IRS file substitute returns for the missing returns, but you could also end up owing more than your share of taxes. Missing returns also delay your tax resolution because the IRS will not resolve your tax liability if you are still missing your returns. That’s why one of the first things we do for our clients is to make sure that all their previous returns are filed and that they are compliant with the IRS. For our client, he was missing several years of tax returns and already had a tax lien filed against his home. He was self-employed and had not had the time to file. While we finished preparing his returns, our client got sick and had to go on disability as he could no longer work. This drastically decreased our client’s income. We decided to file an Offer in Compromise since our client was dealing with a financial hardship and couldn’t afford to pay his taxes back. Due to the fact, our client had a lot of equity in his house, the IRS rejected his offer and responded with their own offer amount. The amount was more than our client could afford, so we decided to work for a different resolution. We put together financials for our client and were able to secure a Partial Payment Installment Agreement. This allowed our client to make small monthly payments to the IRS to pay off a portion of their tax liability. This ended up saving our client over $151,000 in the end!
Case #2: We get a lot of clients that come in after they try to tackle their tax problems on their own. Sometimes you can resolve them on your own and other times you need to have a professional on your side. Our clients learned this during their audit. They were being audited for several years and when they went to meet with the auditor, they weren’t prepared. The auditor wasn’t allowing any deductions that our clients were trying to claim and wasn’t working with them due to their paperwork not being correct and not being organized. The day after they met with the auditor, our clients came to us. We quickly contacted the auditor about scheduling another meeting and started reviewing the financials. A big problem for our clients was that the wife had been doing their books for their trucking company, but when she suffered a stroke she fell behind and wasn’t able to keep up with the paperwork. We were able to help them catch up and work through the necessary paperwork the auditor was requesting. We then held the meeting with the auditor for our clients and were able to get the auditor to allow a majority of deductions. This saved our clients over $75,000 and closed out the audit!
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!
Call 316-448-7955 or visit www.PolstonTax.com to schedule a free consultation!
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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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...