This month’s closed case round up feature IRS mistakes, local small businesses, and a dishonest CPA that left their client high and dry.
Case #1: Our client was a disabled veteran who was barely able to make ends meet and owed the IRS over $100,000. His problems started shortly after his father died and he became a trustee for his father’s investments. Our client did not receive the letters the IRS sent him and didn’t realize he owed money until it was too late. Living on less than $1,000 a month, our client ended up getting levied, with the IRS taking over $100 out of his disability checks. We were not only able to get his levy released, but we were also able to put him into a currently non-collectible status saving him about $112,709 in the process. Now our client receives his full disability check and can live without fear of owing money to the IRS.
Case #2: Our next client owns his own honey distribution business and has owned it for over 15 years. Our client had a CPA file his taxes. Unfortunately, his CPA didn’t prepare or file any of his returns. He only found out when he received an audit notice from the IRS. Our client tried hiring another tax attorney, but the attorney wasn’t returning his calls or helping his situation. This is when our client came to Polston. The IRS said our client owed over $300,000, including over $187,000 for one year alone. Our firm was able to save the client $337,670.91 in the end!
Case #3: Our client is a chiropractor and owns his own business. In 2013 his wife passed and an employee was embezzling money from his practice. His only option was to take money out of a retirement account to pay his bills and keep his business running. When he received a notice from the IRS that he had an underreporting issue his CPA filed an amendment that listed the balance at $13,700. The IRS proposed an assessment of $35,200 instead. The CPA was unfamiliar with the process of requesting to remove the early withdraw penalty. We successfully filed an amended return with the penalty abatement request and the IRS approved it! Our client only owes $5,328 and saved a total of $29,872 from the amount the IRS assessed!
Case #4: Our client was injured on the job and was living on worker’s comp. He required a knee replacement due to his injury and was unable to return to his previous construction job that required travel and the ability to stand for long hours.
This client originally owed $24,000 but after filing the rest of his missing returns (2010, 2011, 2012 and 2014) the balance increased to over $40,000. Less than a month after hiring Polston Tax we submitted their Offer in Compromise in June 2016. We heard back from the IRS offer department right before the end of the year and negotiated a $25 offer after providing updated financial information. Five months later, our clients received a letter in the mail from the IRS that they had never submitted the payment for their Offer even though their payments had cleared the bank! A Polston attorney called the IRS and resolved the potential Offer loss. Our client ended up saving $45,424!
Additional Readings
William is an Oklahoma native, raised in Skiatook but living most of his life in Tulsa. He graduated from Bishop Kelly High School and is currently attending The University of Oklahoma to get his degree in accounting with a minor in finance. William is also part of the Native Organization at his school. He felt...
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