100+ Years of Combined Tax Resolution Experience.
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!
The Internal Revenue Service (IRS) has announced the end of a two-year-long automated collection system pause and started issuing a new notice called LT38. LT38 notices inform taxpayers that the IRS has assumed normal operations. It also updates outstanding balances and explains what to do if you agree or disagree with the content. Additionally, the federal agency...
Nevada sales and use tax laws require businesses to collect and remit sales tax when they meet specified criteria. Where the business owner does not collect sales tax, the buyer must pay use tax to the Nevada Department of Taxation. It’s vital to know which products or services are taxable and the rules on exemptions. Additionally, learning...
A 1099-C form is used for reporting debt cancellation as income to the Internal Revenue Service (IRS) and the individual or entity receiving the canceled debt. It is crucial for tax reporting and compliance. Key aspects of this form include information that affects an individual’s annual tax return and when to file or send it...
The winter holidays are fast approaching, and employers across the country are preparing for their yearly office parties. If you’re thinking of celebrating your workplace, you might be eligible for more tax deductions than you realize. Are company holiday parties tax-deductible? The simple answer is yes, as long as they meet a specific set of...
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...