We understand that for a lot of people, tackling their tax debt is not at the top of their list. Unfortunately, waiting to resolve your tax issue could mean that your tax debt will get worse. It might not seem like a priority, but usually waiting only makes it more difficult and more expensive to resolve your tax issue. If you aren’t sure if you’re ready to resolve your tax issue, take a look at a few cases we were able to resolve this month for our clients!
Case #1: For a lot of our clients, their tax problems happen by accident. This client, for instance, received an inheritance after his father passed away and thought he was withholding the correct amount of taxes. He was also driving to help his mother who was sick and had to withdraw money from his IRA to help pay for his expenses. He ended up owing a large sum to the IRS and wasn’t sure how he would be able to pay it off. After receiving an intent to levy letter from the IRS, he came to us to get help.
Right away we were able to file an appeal against the levy to help protect our client. We next looked through our client’s financial situation and saw that we needed to amend one of his tax returns to help resolve some of the tax debt. Mistakes or unclaimed tax credits can sometimes lead to a larger tax debt. Once we were able to amend the tax return, our team got his financials together and determined he had barely any money left over at the end of the month and submitted him for a $25/mo. payment plan. We waited for weeks for approval and didn’t hear back. After contacting the IRS, we found out the agent has mistakenly placed him in another resolution. We were able to re-submit for the payment plan and the IRS accepted it.
Two years later, the client contacted us letting us know the IRS was reviewing his payment plan. We re-ran his financials and saw that due to a small increase in income, the IRS put his plan up for review. We showed the IRS that despite the increase in income, our client was still barely able to survive each month on his income and the IRS agreed to keep his installment plan at $25! This saved our client over $130,000!
Case #2: Our next client came to us originally to have us set up an LLC for a company he was creating. While setting it up, we saw our client had not filed in over 10 years. After speaking with him about the issue, he hired us to help him with the unfiled tax returns. Once all the returns were filed, we saw our client owed over $50,000 to the IRS. We dove into our client’s financials and determined that while he had income coming in, his living expenses were eating up a majority of his income and he didn’t have anything left over once he paid his bills. We spoke to our client about his options and decided to go forward with putting our client into Currently Not Collectible status. We showed the IRS our client’s financials and were able to provide substantiation for all his expenses. The IRS agreed that our client couldn’t currently make payments on his tax debt and placed him into CNC status. This saved our client over $55,000!
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 844-841-9857 or click below to schedule a free consultation!