Every month we have clients come to us asking for help resolving their tax issues. They owe the IRS or the state or both. Owing taxes is a lot more common than people think. No case is the same and each resolution looks different for our clients. Here are two cases we were able to close this month.
Case #1: When these clients came to us, they had a business that was struggling. They were barely making any money, and because they didn’t have a lot of income coming in, they didn’t have enough money to pay their taxes. This led to them accruing a large tax liability. The first action we took for our clients was we asked the IRS for a collection hold on their account while we put together their financials. Then we got with our client to find out what their financial situation was. Looking through his finances, we figured out that after our client paid all his monthly bills, he didn’t have any money left over. He was going through financial hardship. We knew the best plan of action would be to file an Offer in Compromise so he could settle his tax liability for a lower amount. We put together the paperwork and mailed it off to the IRS and waited. While we were waiting for the IRS to respond, our client let us know that they would be owing for the upcoming year and wouldn’t be able to pay those taxes. When you get into most resolutions with the IRS, you must stay compliant for the next few years or you can default your agreement. Knowing that the unpaid tax balance would default the offer we filed, we decided to file a new offer that would include our client’s new balance. We waited over a year for the IRS to respond. After some negotiating with the IRS and providing documents showing our client didn’t have the money to pay back his taxes, the IRS agreed to a $25 offer. This saved our client over $411,000!
Case #2: Our next client came to us after the IRS placed a lien on their home. They owed for several years and were missing one year’s tax return. We knew we could help them resolve this issue and so we got to work right away. The first thing we needed to do is get our client’s missing tax return filed so they would be in compliance. Once we were able to do that, we pulled transcripts for our clients to see how much they owed and for how many years. Then we put together a financial analysis to see what their financial situation was and what resolutions they could qualify for. Our clients were barely surviving month-to-month, but when looking at an Offer in Compromise, our clients had too much equity in their home. We then looked at payment plans that our clients may qualify for. We started negotiating with their Revenue Officer who pulled bank statements on our clients to see what kind of income they had. After providing documentation showing our clients weren’t receiving that much income, the Revenue Officer agreed to our Partial Payment Installment Agreement. This allowed our clients to make small monthly payments towards their tax balances and ended up saving them over $94,000!
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 405-801-2146 or visit www.PolstonTax.com to schedule a free consultation!