This past month we saw clients who owed taxes to the IRS for several different reasons. For some, they or a family member got sick and they chose to pay for medical treatment instead of paying their tax bill. For others, their business slowed down or they were forced to close down and didn’t have the money to pay the taxes. No matter the reason for your tax liability, Polston Tax can help. Here are two tax liability cases that we were able to resolve for our clients and give them peace of mind!
Case #1: A lot of times taxpayers who are 1099 employees end up in tax trouble. This is because they usually do not have taxes withheld from their paychecks. This means they must pay estimated tax payments. For our client, he hadn’t made any estimated tax payments in several years and ended up owing a lot of money to the IRS. He came to us when he received a levy notice from the IRS and wanted to take care of his tax problem. The first thing we did was ask for a collection hold on his account and pulled tax transcripts to see how much our client owed. Once we knew that, we worked on getting his financials together to see what kind of tax resolution our client could afford. Luckily, we were able to set up an installment agreement with the IRS that fit our client’s budget. Two years later, our client came to us because he was wanting to retire and wouldn’t be able to afford his monthly payments anymore. Our client stopped making his monthly payments and his installment agreement ended up defaulting. We re-did his financials with his new income, which was only Social Security, and ended up filing an Offer in Compromise as our client didn’t have any money left over at the end of the month. We sent the proposal in and after some negotiating with the IRS agent, we were able to come to an agreement and our client’s offer was accepted! This ended up saving our client over $200,000!
Case #2: Not hiring the right people can sometimes lead to big problems for business owners. Our next clients owned a small business and as it grew, hired more people to help them run the business, including an accountant. Turns out the accountant was not submitting the proper reports or making the correct tax payments. When our clients found out, they let go of their accountant and came to us for help. They already had a tax lien filed against them and were worried they might get levied. We went to work right away to try and help our clients. Our clients had a Revenue Officer assigned to them, so we contacted them, and they wanted to set up a Trust Fund interview to determine who is liable for the taxes owed. After the interview, we communicated with the Revenue Officer to get them all the necessary documents and substantiation they needed to help resolve our clients’ tax issues. Unfortunately, our clients’ business slowed down drastically, and they ended up closing the business as there was no more income coming in. We took this information to the IRS and proved that our clients no longer had any income coming in and were barely affording their monthly living expenses. The IRS agreed and placed our client into Currently Not Collectible status. This allowed our clients to not have to make any payments to the IRS and not be worried about being levied. This saved our clients over $113,000 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! Call 844-841-9857 to schedule a free consultation!