Hi, I’m Jeff Fouts, a tax attorney located in metro Atlanta, with a nationwide law practice helping clients who have serious IRS problems. I’d like to share with you another client case study from the 1,000’s of tax clients we’ve represented.
Client age: 40’s
Total tax debt: $60,000 sales tax to the Georgia Department of Revenue.
Details of the case: Georgia wanted their money and was levying, or garnishing wages in an attempt to collect the back taxes.
Georgia resolution: We were able to reduce the tax debt by 50%.
A married couple in their early 40’s from Hoschton, Georgia hired us after the Georgia Department of Revenue levied their bank account. Georgia was coming after this couple because they had owned a small restaurant that had closed, but the business owed Georgia unpaid sales taxes of approximately $60,000. Georgia was coming after them because they were the owners of the business and Georgia made them personally responsible for the tax debt even though the business was out of business.
Our first step was to obtain a signed Georgia Form RD-1061 power of attorney document from our client. This document allows employees of the Georgia Department of Revenue to speak with us and give us information we request.
We contacted the Georgia Revenue Agent who was assigned to collect the unpaid business taxes. After speaking with the Revenue Agent, she offered to allow our client to make a monthly installment agreement of $1,800 per month. Our clients told us they could not afford that high of a payment. We decided to take another tact.
We collected and analyzed their financial situation. Unfortunately, our clients’ financial situation was somewhat unstable. The husband was paid on commissions, and his commission rate had been reduced. But their situation was even worse, the wife was not sure how much longer her employer would be in business. We decided that our best option was to present their financial information by filing an Offer in Compromise.
Georgia will allow taxpayers the opportunity to update their financial information during the Offer in Compromise process if it changes significantly, which is different from the way the IRS processes their Offers which they base on a taxpayer’s financial position as shown to them at the time an Offer is filed with them.
We filed an Offer in Compromise with Georgia for $30,000, which is $0.50 on the tax dollar owed. Once the Offer was assigned to a Georgia Revenue Agent within the Offer Unit, we began the process of answering their questions and providing explanations regarding our client’s Offer. After performing their financial review, the Georgia employee felt that our clients could afford a higher offer amount, and we had our work cut out for us to try to convince them otherwise.
In the end we were successful in convincing Georgia to accept our clients’ $30,000 offer. Georgia allowed the offer to be paid over 60 months at a rate of $500 per month. Our clients could afford that monthly amount and they agreed.
Moral of this story? If Georgia levies your bank account or your wages, you need to seek help so you can identify your collection options as soon as possible. You may have options and solutions you didn’t know about, or didn’t know you’d qualify for.
I hope this important client case study has helped you understand the IRS a little better and how tax problems are solved. Chances are you have questions or concerns about your own particular tax problem. I encourage you to pick up the phone and call me. I can answer your questions. Over the past 20 years I’ve represented clients in all 50 states and 29 foreign countries, and I welcome your call. You can reach me at 1-888-995-6785 or by email at email@example.com. I’m Jeff Fouts and thanks so much for watching. Have a wonderful day.
TaxHelpAttorney.com Tax Law video No. 145327