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: $204,000 to the IRS.
Details of the case: Client had been turned down for an Offer in Compromise.
We reviewed the case and decided to file a Offer for the client.
IRS resolution: We reduced the tax from $204,000 to approx. $22,000
A married man in his late 40’s from Smyrna, Georgia contacted us after another so-called “tax professional” firm, JK Harris to help them solve their IRS tax problem. The other firm had filed for an Offer in Compromise to settle their tax debt for less than they owed. An Offer in Compromise is a great solution, but it should only be pursued if it is the best solution for that particular case.
This client was disappointed because the Offer filed on their behalf had failed. After the IRS rejected his Offer, he said he began looking for a reputable tax professional to represent him, and after doing a lot of research he said he found us and wanted to hire us. I always make clear to clients that yes, we are in fact very experienced, but that we aren’t magicians and that every client’s case is different and thus we couldn’t predict what particular solutions they might qualify for until we had gathered all the facts.
The client’s wife had already filed for and received Innocent Spouse relief, which was great because she was not liable on any of the tax debt. In addition, he told us he owned a corporation which was current on all its tax payments and filings. So far, so good.
Our first step was to obtain signed Forms 2848 and 8821 that would allow the Internal Revenue Service to speak with us and allow them to give us important information we would need to help figure out what solutions he qualified for.
His IRS Account Transcripts indicated a total tax debt of $204,000 for tax years 1999 – 2008. The IRS had reached the point in their required collection process where they had the legal right to levy or garnish his bank accounts and sources of income. The IRS had already filed tax liens against him. Another piece of good news was that all his required tax returns had been filed.
We proceeded to collect and analyze his financial information to determine what options were available to him. Our analysis revealed that he qualified for an IRS Offer in Compromise to settle his tax debt. We completed the required IRS Offer paperwork, assembled his backup documentation and mailed the entire package to the IRS Offer in Compromise unit. We get compliments on a regular basis from the IRS saying that the packages we submit on behalf of our clients are very high quality. Our goal is not to impress the IRS necessarily, but this helps our clients because lots of times the IRS simply returns the packages submitted by taxpayers or the inexperienced folks they’ve hired to represent them.
After nine months, the IRS Offer Unit contacted us for more information. After reviewing the additional information, the IRS suggested that we amend, or change, client’s Offer amount because of some facts in the financials. After much discussion with our client, we and the client agreed that the best course of action was to change the amount he was offering. Finally, over one year after his Offer was filed, IRS mailed his Offer Acceptance Letter. Our client settled for 0.11¢ on the dollar!
Moral of this story? It’s always smart to get a second opinion! Seek out an experienced tax professional to take a look at your current financial situation to be sure you get the best settlement you can.
Try not to lose sleep over your IRS or Georgia tax problem. Call us.
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 phone number below this video or by email here.
I’m Jeff Fouts and thanks so much for watching. Have a wonderful day!
TaxHelpAttorney.com Tax Law video No. 102812