Every month our office works to help our clients resolve their tax troubles once and for all. Sometimes this means setting up payment plans, getting them into Currently Not Collectible status, or filing for an Offer in Compromise. These types of settlements help our clients solve their tax issues and sometimes save money. Here are a few cases we were able to resolve this month!
Case #1: Audits can be one of the most intimidating and scariest processes for taxpayers to go through. If you don’t have all your ducks in a row, you could end up getting assessed more taxes than you actually owe. That’s why it’s important to have good representation that will defend you and advocate on your behalf. Our client owned a small business and received a letter saying his business was being audited for 3 different years and the assessment was for over $400,000. Our client came to us desperate for help as he had no way to pay off the assessed tax. We first went and met with the auditor on his behalf to learn where all the assessed tax was coming from. After our meeting, the auditor sent us an Examination notice, which listed the taxes owed and what they were for. We had one month to respond to either explain the expenses or prove the taxes weren’t owed. After getting an extensive list of documents together, we sent them to the auditor to see if we could get the tax lowered. A few months went by and the auditor was still disallowing a large portion of expenses despite our documentation for them. We then appealed the findings and waited to hear from the appeals officer. When we did finally hear from the appeals officer, he wanted more documentation. We were able to get it together quickly and send it in. The appeals officer and our tax attorneys went back and forth until finally, we were able to negotiate what would be a good assessment for our client. Our client accepted the assessment and we sent in the paperwork to finalize the audit. This saved our client over $360,000!
Case #2: The process of resolving your tax debt can take months and sometimes a few years depending on how difficult your case is and how fast the IRS is moving. Our next client came to us after getting threatened with a levy. She was a truck driver and hadn’t filed tax returns in several years and owed nearly $400,000. We knew the first thing we had to do was file her missing returns as the IRS was filing substitute returns for her leading to the high tax debt. If the IRS files your tax return for you, they do not claim any tax deductions or credits, which can lead to a large tax debt. Once the returns were filed, we moved to try and resolve the tax debt. We first tried to apply for a payment plan for our client, but the terms of the payment plan were denied. Our clients’ income ended up dropping drastically while we were working on his case, so we decided to shift gears and instead try for an Offer in Compromise. We crunched the numbers and assembled the paperwork to apply for the offer. It took the IRS over a year to respond to the offer and they rejected it. We appealed the rejection and waited for an appeals officer to be assigned. After providing documentation to show our client was experiencing financial hardship, the officer agreed and approved the offer. This ended our client’s tax problem and saved her over $370,000!
If you need help settling your tax debt 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 405-801-2146 or click below to schedule a free consultation!