In this month’s closed case round up, we have a business owner who didn’t file their tax returns for a few years and a contractor that created a large tax liability after his business slowed down!
Our first client was a business owner who owned a trucking company and didn’t file tax returns for a few years. He fell behind on his tax payments after his wife passed away because he took some time off work. He decided to come to Polston Tax because his bank account was levied and he wasn’t sure what to do. Polston Tax scheduled a Collection Due Process (CDP) hearing so we could talk to the IRS about our clients tax liability. After the CDP hearing, we filed an Offer In Compromise to try and settle the tax balances. The IRS ended up rejecting the offer because our client did not pay taxes on a settlement he receive due to an auto accident. Our client was then notified he was being audited. Our team worked with the IRS Counsel to help prove he wasn’t responsible for the income tax that was attached to his old business. Finally after months of back and forth, the IRS Counsel conceded letting us know there was no deficiency in income tax due. This saved our client over $440,000 in the end!