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: The majority of our clients are going through a very difficult time when they come to us for assistance with their tax problems. This client came to us after going through a long and hard divorce. He was working a job when the IRS began levying him so severely that he was barely bringing home enough to pay his bills. This client had several years of unfiled tax returns and the IRS had filed Substitute For Returns for the missing returns. When the IRS files these substitute returns, they don’t take any tax deductions or tax credits, so you are likely to owe a lot more than if you were to file them yourselves.
We negotiated with the IRS to prove that the levy was creating a financial hardship for our client. After putting together financials for him, we decided that his monthly disposable income was so low that he would qualify for an Offer in Compromise. After submitting the offer, we had to wait almost a year before the IRS would even review it. By the time the IRS reviewed the Offer, our client was making more money through a new, higher-paying job. Because of the change in income, the IRS rejected the Offer. Based on his new income, we then decided a payment plan would be the best route for our client. While we were compiling financials and paperwork, our client had a stroke and wasn’t able to work which led to him losing his job. While our client worked to get healthy again, we decided that now would be a good time to file another Offer as our client had no income and was borrowing money to survive. We filed the offer and waited. When the Offer Specialist contacted us, they didn’t believe that our client wasn’t able to return to work. We then worked to provide a detailed medical history showing why it was unlikely he would return to work. After a lot of back and forth, the IRS finally approved the offer allowing our client to settle his tax debt once and for all, saving him over $58,000!
Case #2: This next client owned a flooring company and was not issuing 1099’s correctly, which led to him being audited. The IRS claimed he owed over $250,000 due to disallowed mileage and 1099 income. Polston Tax started by meeting with the auditor and providing what documentation we had to prove his expenses. While this lowered the amount our client owed, it was still over $200,000. We appealed the examination by the auditor and waited for the case to be moved to appeals. In appeals, we worked with our client to put together a detailed mileage log and went through the 1099s our client issued to match them up with the checks the business had issued. The officer agreed with most of the substation we provided, which allowed us to lower the amount of taxes our clients owed by over $230,000!
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 us at 844-841-9857 or click below to schedule a free consultation!