Wednesday, June 23, 2010

Saved From Siezure!

The client contacted us and hired us the same day of a deadline for a $15,000 down payment due to the State of North Carolina. They also needed to sign an agreement for $6000.00 per month to commit to a 3 month payment agreement. For obvious reasons this was not doable.

First and foremost the client did not have the $15,000 that day. Secondly, if they did pay the money down, and stuck with the payment agreement they would have continued to fall behind with their current tax deposits and possibly gone out of business. It was time to get to work!

We contacted the State Revenue Officer immediately upon filing of the Power of Attorney form. This was done at 1:30 - 2:00 our time, thus filed by 3:30 to 4:00 Eastern Time. Talk about the 11th hour! After speaking with the Revenue Office who worked the case, he indicated there was no room for negotiation and they would be shutting the business down by way of seizure of the assets and inventory. This process involves the State going to the business location, posting notice that they are going to be taking over the place, and in the ensuing months taking the assets and inventory to auction for sale. In other words, if we did not act quickly, we were not going to have a client for very long.

I asked for the manager's fax number, phone number, and called him and left a message. I also sent a fax with our intentions. We would have the client file and pay the last two months deposits for sales and use tax (totaling $13,000) in the next 5 business days, which after contacting the client, they could do. Secondly, we would structure an agreement whereby the client would remain current and compliant along with pay $2,500 per month for 4 months, with an increase to $4,000 per month until the liability was paid in full. We also cleared this proposal with the client prior to sending it out the door.

After a few phone calls with the Group Manager we were able to negotiate a favorable resolution for our client, keep the client in business, keep multiple people employed, and assist the State of North Carolina with the repayment of the tax liability. All in all this process took 21 days (6/1/10 - 6/21/10) from start to finish!