Case #1: Our first client had recently gotten divorced and came to us wanting to take care of the tax balances the couple had incurred while together so that they both could move on. When he came to us, our client already had a wage levy and was desperate to get his tax problem taken care of so he wouldn’t lose any more income. After retaining our office, our client was let go from his job and no longer had any income. Because the IRS could no longer garnish his wages, they placed a lien on the home he owned. Due to our client’s loss of income and inability to pay any type of monthly payment, our office determined the best resolution was Currently Not Collectible (CNC) status. This would mean our client wouldn’t have to make any payments and that the IRS would not try to garnish his wages while he was in it. We put the paperwork together for our client and went to the IRS to negotiate. The IRS agreed to place our client into CNC status and we were able to save him $210,000.
Case #2: It only takes one year of not filing your tax return to get you in trouble with the IRS. Our next client had always filed and paid their taxes on time. But when their accountant got cancer, their return was filed late and they ended up owing more than they could afford. Our clients had drained their retirement to try and pay the balance but ended up owing more due to the taxes on the retirement payments. Our client came to us after the IRS levied their bank account and they didn’t know what to do. We were able to stop the IRS from levying their bank account again and started gathering financials to get them into a resolution. Our clients had not filed their current tax return and so we had to file the return so they were compliant, otherwise, the IRS would not negotiate a resolution with us. The IRS moved to levy our client’s Social Security paycheck, so we appealed the levy and scheduled a Collection Due Process hearing. We explained to the IRS that our client had Alzheimer’s and could no longer work and was dependent on Social Security. Our team then went and provided paperwork to the IRS to get our client into a Partial Payment Installment agreement. This allowed our client to make an affordable monthly payment to the IRS. The IRS approved the payment plan and we were able to save our client $236,000.
Client #3: Winning money in the lottery or at a casino can really improve your financial situation, but just like your regular income, any winnings you get are taxed by the IRS. Our client had won over $400,000 from casinos in the last couple of years but did not pay taxes on the winnings. The IRS moved to levy our client’s bank account and that’s when she came to us. We determined our client may qualify for an Offer in Compromise, so we put the paperwork together and sent it to the IRS. After waiting nearly a year for the IRS to look at the Offer, the IRS rejected our offer. We redid our client’s financials as our client had recently lost her job and submitted a new offer. This offer was approved by the IRS. This allowed our client to save $121,000 and not have to worry about getting levied any more.
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...
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