We often get clients who come to us after attempting to deal with the IRS on their own, and things don’t turn out how they had imagined it being without having the help of a tax attorney.
Case #1: In our first case, our client had gained filing compliance and fully paid off her taxes owed prior to retaining our firm for assistance. Despite having paid the balance in full, she still owed over $12,000 due to penalties and interested that accrued on her IRS account during the periods she owed. The client came to us for help because she wanted to find out the best way to get the penalties and interest reduced, or even removed. After analyzing her IRS account, we moved forward with filing a First-Time Penalty Abatement as well as a Reasonable Cause Penalty Abatement on her behalf. While there is no guarantee the IRS will grant you a penalty abatement it is in your best interest to try. It’s like the saying, “If you don’t ask, the answer is always no”. Having a tax professional to negotiate abatements on your behalf is the best way to increase your chances of getting an abatement. Many different things can cause you to accumulate penalties and interest on your account including failing to file your tax return on time, not making a payment on time, or even tax filing errors. The goal in mind with a Penalty Abatement is to save you as much money as possible, and possibly even all penalties and interest on your account waived. Our office was able to secure a First Time Penalty Abatement for the client that saved her over $11,000! Our team also submitted a Reasonable Cause Penalty Abatement to attempt to get her a refund of the penalties she already paid.
Case #2: Our next client owed years of back taxes to the IRS due to improper income tax withholding amounts. The balances arose from a period of time that the client went tax exempt (was not having any taxes withheld from their paychecks) and used the money to do some remodeling on their house. Thereafter, they changed their W-4 to have the proper amount of taxes withheld from their pay. Later on, they found out that their employer had adjusted their state withholdings, but not their federal withholdings. This caused them to incur an additional tax liability along with additional penalties and interest. It also led to the IRS issuing a mandatory withholding order to their employer, forcing them to have the maximum amount of withholdings deducted from each paycheck. After retaining with our office, we got the IRS withholdings order released and also negotiated a Partial Pay Installment Agreement for $25 per month. In the end, this saved our client almost $25,000!
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!
Additional Readings
There are many times when life throws obstacles at you, especially when you least expect it. Sometimes things happen in people’s lives that cause them to not file their tax returns on time – or even at all. This is exactly what we are here to help you with, and for our first client we...
Case #1: Our first client was a business owner who was going through a bad divorce. She had purchased the property for her business under her personal name, and unfortunately her ex-husband had been commingling the business expenses with their personal expenses for years. This is one of the biggest red flags that the IRS...
When it comes to filing your taxes, there are many obstacles in life that can cause you to file late, or just not file at all. Penalties and interest begin to accumulate, and it is alarming to see how quickly your tax liability can increase in short amounts of time. If you have years of...
When you own a Cannabis business, taxes can become extremely complicated to understand and keep up with. Here is just one example of a client we saved from heavily overpaying on their cannabis business’ taxes! Case #1: Our client owned a cannabis dispensary in Oklahoma and needed help navigating their business taxes. In the state...
All too often, we see hard-working people who unexpectedly run into a financial hardship that is out of their control. This hardship then ends up with them owing money to the IRS or State due to unpaid taxes. Here are two examples of tax liability cases from this month where we got our clients out...
There are many different reasons we see that cause people to owe taxes to the IRS. From incorrect withholdings, to medical issues and loss of income. No matter the reason for your tax liability, Polston Tax can help. Here is one example of a tax liability case we resolved for our clients this month and...