Every month our Polston Tax team works hard to help assist our clients as they deal with their tax issues. Sometimes this means getting a levy released, a payment plan set up, or an Offer in Compromise. This month our team was able to help several clients resolve their tax problems. Here are just a few examples of the cases!
Case #1: Sometimes a simple mistake can result in a large tax liability. For our clients, they had simply forgotten to claim income in a bank account when they filed their tax returns. Our client had refinanced a building and used the money for certain business expenses but forgot to claim the income from the sale on their tax return. This resulted in the IRS auditing them because the IRS thought they were trying to hide income. Our client came to us because they weren’t sure how to handle an audit. We helped our client through the audit and were able to battle back against the auditor to help keep our client’s unpaid taxes low. We finally were able to come to an agreement with the auditor and the audit was closed. Because our clients had a tax liability resulting from the audit, their case was then moved to the IRS’s collections department. We once again took over our client’s case to try and get them an affordable resolution. After digging through their financials, we decided an Offer in Compromise would be the best resolution for our client. We got together their financial information and sent the paperwork to the IRS. After waiting almost a year for the IRS to review the offer, we had to negotiate with the Offer Specialist on several expenses as she was trying to disallow certain expenses for our client. Finally, the IRS accepted our offer and we were able to end our client’s tax troubles and save them over $518,000!
Case #2: A loss in income can drastically change your financial situation. For our next client, he had lost his job and did-n’t have the money to pay his taxes. He was behind on his tax returns and wasn’t sure how to catch back up. That’s when he came to us. The first thing we did was focus on his missing tax returns. The IRS will not negotiate for a tax resolution if you don’t have all your necessary tax returns filed. Once he was in filing compliance, we then worked on getting him into a resolution. After looking at his financials, we decided the best thing to do would be to file an Offer in Compromise. We filed the paperwork and then waited over 10 months before the IRS responded. The IRS let us know that they had rejected our offer. We appealed their rejection and tried to work with the Offer specialist on a resolution. The IRS wouldn’t allow certain expenses causing the payment to be way too high for our client. We then decided to go a different route. We got the paperwork together and then applied for a Partial Payment Installment Agreement. After some back and forth with the IRS, they finally agreed to our installment agreement. This saved our client over $300,000 in the end!
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!