Case #1: One profession we found that has a lot of difficulty with their taxes are truck drivers. This is in part due to the fact they spend a lot of time on the road and have a lot of expenses. Because of this, it can be easy for them to fall behind. For our next client, he had fallen behind on his taxes for a few years but had hired a national chain to help him get caught up. Unfortunately, our client never heard anything from the business and ended up being back in the same position he was in before he hired them. Luckily, he came to us after the IRS sent him a letter letting him know they weren’t going to renew his passport due to his tax issue. Our first task was to get all his missing tax returns filed with the IRS as we cannot negotiate a resolution until he was in filing compliance. After his tax returns were processed, we prepared a financial analysis to see what our client could afford. Our client had been diagnosed with cancer and due to multiple surgeries and treatment, our client was unable to work and was living on his retirement and social security. After paying his bills, he had barely any money leftover. We took our analysis to the IRS and were able to negotiate a Partial Payment Installment Agreement. This allowed our client to make monthly payments to pay off a portion of the tax debt before the balances expired, this ended up saving our client over $130,000 in the end!
Case #2: A lot of our clients don’t file their tax returns and end up owing more money than they think because the IRS files returns for them and they don’t take any tax deductions. The only way to prevent this is to file your missing tax returns. For our next client, they had not filed their returns in several years and owed over $100,000. We knew the best way to start resolving their large tax debt would be to file their missing returns and see if that would lower their liability. We were able to prepare all their returns and get them filed with the IRS and we started working to negotiate a resolution with the IRS. While we were negotiating, our clients let us know they were going to owe for the upcoming year and wouldn’t be able to pay the taxes in full. The IRS can default any resolution you are in if you end up owing taxes in the future and don’t pay them. Knowing this information, we waited for our clients to file their tax return and for the balance to post, so that we could include the new balance in the resolution and not worry about our resolution defaulting. Once the new balance was added, we put together financials for our client and realized that after all their expenses, our clients had no money leftover. We knew their financial hardship could qualify them for an Offer in Compromise, so we started the paperwork so that we could file for it. After submitting all the documents, we waited for almost a year before the IRS chose to review our client’s offer. They required some substantiation for our client’s bills and expenses, but after some tough negotiations, they accepted our $25 offer! This ended up saving our clients over $140,000!
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 to schedule a free consultation!