Monday, September 27, 2010

Partial Pay IA for business and individual!

The business came to us last year and had a serious IRS issue facing both the business along with the corporate officer personally. We had to review both his business and personal financial statements as the he owed the IRS $500,000 for the business and close to $200,000 personally on the trust fund portion of the liability. After further review, submission of documentation to the IRS, and months of waiting we were finally able to set up a payment arrangement for the business. We set up a monthly payment plan of $2000 per month. Usually the IRS wants close to $10,000 monthly to satisfy the statute requirements.

While reviewing the installment proposal for the business, the IRS decided to chase after the personal liability as well, sending collection letters, threatening levy, etc. This often happens and I would highly recommend representation for both the business and personal financial matters. If the business is represented and one thinks they can handle the trust fund portion on their own, think again! It is very difficult to handle both at the same time.

After submitting a financial statement to the IRS and the IRS allowing all necessary expenses, they agreed to a $250 a month plan with the individual. Therefore, the total plan is for $2,250 and our client can now make financial moves and decisions he could not make before.