Successful Tax Resolution By Mike Wallen

Dealing with Levies

2012-01-12T10:23:00.000-08:00

Levies are issued against bank accounts, accounts receivables, wages, and other sources of income when there is a delinquent tax liability. Levies are usually issued under a circumstance whereby the client is not current or compliant, misses a deadline, or misses a payment on an installment agreement. When one of our clients is levied, usually against a bank account, this can severely damage a businesses ability to continue to operate.

Most recently we had a client who missed a deadline regarding financials. The IRS sent out a levy about 3 to 4 business days following the actual deadline. The client was levied for approximately $3,500.

In order to expedite a release of levy one should always follow these steps below:

- Provide the information asked for
- Provide information concerning what expenses will not clear (especially payroll)
- Provide reasonable cause as to why the levy should be released

Once these items are remitted, the IRS will entertain a release. We followed the steps above and were able to work with the Revenue Officer who issued the levy to satisfy all of her requests. We were able to secure a levy release for $3,250 to cover all the necessary payroll expenses. We are now moving forward on the next stage of the case which is resolution. We were lucky to obtain the release of levy. Had the client met the deadline originally issued, the levy would have never taken place. To sum it up, meet all deadlines, stay current with Federal Tax Deposits and Returns and do not miss any installment payments once an agreement is reached!!

How to Resolve State Tax Liabilities

2011-12-13T12:27:00.000-08:00

The purpose of this post is to advise my client's, prospective client's, and other professionals on how to deal with the State Taxing Authorities. Most State Authorities operate without efficiency, they are understaffed, underpaid, and overworked. Therefore, their objective is to collect the outstanding amount owed as quickly as possible by way of levy, garnishment, and seizure and sale of business or personal assets.

We recently had a client come on board with a State of Colorado tax liability (withholding taxes) totaling over $53,000. We called the representative on file, after a few weeks of messages left, the State of Colorado went out to my client's business location and left a 3 day notice to seize and sell the assets of the business if the liability went unpaid. We immediately got on the phone with the representative and started discussing strategy. At first she mentioned the State of Colorado would only extend a 3 month agreement. We kindly informed her this would not work for the client. We decided to take a look at other agreements that had been set up over time with other associates in our office. With this being said, we found the State has extended a 12 month agreement, 6 month agreement, 8 month agreement, and a 15 month agreement, all with a 25% down payment to accompany each agreement. So we ran these options by the client and we decided on 25% down with payments over the next 8 months. As soon as we could we sent a proposal in writing to the Group Manager, as well as the State Revenue Officer to avoid potential collection action. The State Revenue Officer emailed us back and indicated the agreement would be reviewed by a higher authority and she would get back to us by next week.

Long story short, we secured the agreement we wanted by virtue of patience and hard work. We saved the client from being seized and arranged a payment plan that would work for both the State of Colorado and the client. It is important to remember when dealing with any State Tax Agency to stay in touch, put everything in writing, and follow up promptly with the Revenue Officer and the Group Manager. Otherwise, you could be left holding the ball for a client in desperate need of resolution, when a resolution could have been obtained without unnecessary collection action.

Reinstating Installment Agreements

2011-12-12T15:59:00.000-08:00

We have had to revisit installment agreements for various different reasons. A few reasons have been for lack of payment, accrual of additional taxes, failure to remit timely payments, and so forth. What is important to remember is the installment agreement usually can be reinstated rather quickly. The appropriate and following steps must be taken:

- Contact your Power of Attorney right away and fax any and all notices to his/her attention
- Have the Power of Attorney read the notices (if they have not received copies already) and dictate next steps
- Once the next steps are determined, make sure all notices are calendared and appeal rights are adhered to
- A financial statement form may need to be revisited, filled out and turned in, but many times a call will resolve the situation

Usually the IRS will reinstate the agreement, charge a user fee, and you will need to start making payments immediately. It is important to remember that once an installment agreement is reached pay attention to the terms of the agreement. The following must be maintained throughout the duration; staying current and compliant, filing current returns timely, paying current taxes timely, paying installment payments on time and in full by the due date, taking notice of any addition or increase to the agreement, taking notice of a 1 or 2 year financial review once the agreement is set up, paying any and all notices if additional tax, penalty, or interest amount is accrued and informing the IRS as such.

Remember, if you are a current client and your agreement defaults, please contact us immediately to assist you with the reinstatement work involved.

Direct Debit Installment Agreements and Liens

2011-12-12T08:14:00.000-08:00

The IRS is making changes to the lien process whereby the IRS will allow liens to be withdrawn under certain circumstances. The circumstances are as follows:

- Taxpayers need to have an assessed personal balance due of less than $25,000
- Taxpayers need to enter into a direct debit installment plan
- Taxpayers on existing payment plans can convert to the direct debit installment plan

Of course, there is a probationary period to ensure all payments are made timely, but the benefit here is the liens are withdrawn. Of course, please seek our professional advice for more detail. I can always be reached at 888.589.0955 ext. 333.

Best of Luck!!

In Business Taxpayers: Things to Watch Out for When Filing an Offer in Compromise

2011-12-12T07:47:00.001-08:00

If you own a business, operate a business, or have ownership percentage in a business, beware of the repercussions it could cause with regard to a personal Offer In Compromise.

A personal Offer In Compromise under doubt as to collectibility, or effective tax administration is an offer to settle the outstanding amount owed for any personal income tax, Civil Penalty, or any other personally assessed balance due. When filing a personal offer in compromise the IRS takes into account all personal assets, equity in assets, bank accounts, and of course an income and expense ratio as well. As of late, the IRS has been asking individuals who have ownership in a business (as little as 5%) to disclose the financial situation of the business. This can cause a sticky situation to arise between business owners, shareholders, and non-liable partners of the business.

The best advice we can give is to have the individual filing for the Offer to disclose a valuation of the business up front. Try to take into consideration the value of the business, percentage, or shares if the individual were to "cash in" and receive either a profit or the initial investment back. It is best if this information is offered up front as to not cause scrutiny upon investigation of the Offer In Compromise.

I would suggest seeking out a professional at Larson Financial, Inc., prior to filing an Offer In Compromise on your own. Good luck!!!

Partial Payment In Business Installment Agreement Saves $200,000!

2011-08-01T07:16:00.000-07:00

We have worked with this taxpayer for quite sometime. He came to us in the fall of 2010 with a tax liability totaling over $200,000. He had a lot to do prior to setting up an agreement with the IRS as the business was not current or compliant with any obligations at the time. As you are all aware, a taxpayer must be current with the Federal Tax Deposits and tax returns prior to setting up an agreement.

After getting the taxpayer current and compliant we submitted a financial form that showed the taxpayer could pay roughly $500 monthly toward the liability. After working with the Revenue Officer for several weeks he agreed to set up the plan. The plan will pay out approximately $40,000 over the remaining life of the collection statutes. A net savings of over $200,000 will be realized over time after all interest and penalty accruals have been accounted for.

Another great success story is finalized as we maintain operations and keep people employed!!

Assessment Statutes Expire Saving My Client $180,000!

2011-07-01T08:05:00.000-07:00

The IRS has an assessment called the Trust Fund Recovery Penalty which is used to assert a penalty to the responsible parties in a business when dealing with outstanding employment taxes. The IRS has a 3 year period of time to do this. The 3 year statute begins upon the actual filing of the return and original tax assessment. If the IRS misses this timeline, they cannot assess the taxpayer with the trust fund recovery penalty. I believe I have explained the trust fund previously in a different post. However, let me revisit; the 941 tax is made up of Federal Withholding, Social Security, and Medicare pulled out of each employees paycheck. The employer matches this amount as well. The Trust portion is the employee withheld portion only. Officers, shareholders, CFO's, Treasurers, and Partners can all be responsible for the trust portion of the debt. If held liable, liens will be filed, levies will ensue and other collection action will take place against the individual. Our client, by virtue of time, will be free and clear from the trust portion of the debt.

Our client ran a business and managed to incur a $302,000 liability to the IRS for employment taxes. These accruals took place over a 4 year timeline from 2003 up until 2007. The last ASED (Assessment Statute Expiration Date) expired on 4/15/2011. We estimated the trust portion of the debt to be around $180,000. Our client will no longer be responsible for paying this back or at risk for assessment.

We have managed to wrap up the old business, close it out, and save our client $180,000!! Yet another happy client here at Larson Financial, Inc.

Partial Payment Installment Agreement Saves 1.3 Million

2011-06-01T15:31:00.001-07:00

Our client came to us with well over 1.5m owed in back 941 tax liability. They were also missing several 1120 tax returns, 940 tax returns, and 941 tax returns. After about a year of working with the taxpayer, keeping them protected from aggressive collection action, and working with the Internal Revenue Service, the taxpayer was finally able to file all missing returns. Upon filing all the missing returns, the business was able to stay current and compliant with all Federal Tax Deposits.

At first the IRS thought the business could pay closer to $15,000 monthly, an amount that would suffice and pay the liability off over time given the collection statute. However, the taxpayer indicated she could not afford this amount, nor did the financial data show the business could afford a large payment. The IRS also wanted to seize assets and real property to help pay down the tax liability. All seizure would do is put the taxpayer out of business and 50 people out of work. We were able to convince the Revenue Officer working the account to set up an agreement of $2,000 monthly. The IRS decided to not seize the business location or shut them down. Over the next 100 months the business will pay back $200,000.

We consider this a great resolution as it keeps 50 people employed, 50 families fed, a business going that has been open for over 40 years, and the economy in a small town alive. We take pride in what we do to save businesses across America from closing down. If we can work out an equitable resolution with the IRS and keep people employed, we know we have done our job correctly!

OIC Settled for 15% of the Total Tax Liability!

2011-05-02T07:24:00.000-07:00

Our client came to us last fall with a unknown tax liability. She also needed her 2009 tax return prepared. After preparing her 2009 tax return, we determined that she owed approximately $30,000 in taxes and a total of $35,000 with penalty and interest. After reviewing the financial statement we made the determination that she qualified for an Offer In Compromise.

Her liability incurred was based on life insurance distributions that were never paid back. These distributions go back to the year 2000, but when she couldn't pay back the amount of money taken over the last 10 - 11 years, it was taxable in the most recent year.

Our client is just under the age of 30 years old. She works as a secretary for a tech company in the local area. She doesn't make much money, has 1 child, and very limited resources to pay her tax liability. We offered the value of her assets consisting of equity in two vehicles, totaling just over $5,000.

After the IRS was aware of how the liability was incurred they agreed on a settlement. The taxpayer was very happy with the results and she is now on our reference list!

Saved Corporate Officers From $200,000 in Trust Fund Assessments!

2011-04-01T07:08:00.001-07:00

The trust fund portion of the tax liability owed by a business is made up by the medicare, social security, and federal income taxes withheld from employees paychecks. When an officer of a corporation does not in turn take these monies and remit them to the Federal Government, the officer can be liable for what is called a trust fund assessment, or Civil Penalty. In essence the employees are "trusting" the employer to remit these taxes on their behalf so they pay in their fair share of SSA, Medicare, and Federal Withholding.

Our client came to us owing the government over $300,000 in 941 liability to the IRS. We immediately started having them remit voluntary payments to the IRS and designating these payments toward the trust portion of the taxes. After our initial financial review we determined the business could afford to pay approximately $5,000 per month toward the liability. We offered this proposal to the IRS. After much consideration, a few appeals, and waiting on the IRS to get back to us the proposal was accepted. The revenue officer we worked with also worked on the trust portion of the liability as explained above. She determined both officers were responsible. At first, the liability was calculated incorrectly, but we will save these details for another posting.

When it was all said and done, we were able to negotiate a stay on the trust assessment. We had convinced the Revenue Officer that due to the liability, installment proposal, and the fact the taxpayer had made well over $45,000 or so in voluntary payments, that she should hold off on assessment. She ultimately agreed and had the taxpayers sign a waiver agreeing to an extension of the statue to collect. All this means is she did NOT assess the trust fund to the officers. Liens will not be filed against the officers, and the collection department with the IRS will not attempt to collect on this liability. The business has been current and compliant with all Federal Taxes due and current with installment payments. Our client was ecstatic when we told them the IRS would not be assessing the trust at this time.

Remember, if you work with the IRS diligently, comply, and know your rights, great things will happen!!

Crossing your T's and Dotting your I's

2011-03-24T10:56:00.000-07:00

As we all know when dealing with the IRS it is important to make sure you cross your T's and dot your I's.

We recently had a client who came to us with a closed business. He wanted to simply pay the trust portion of the liability (Federal Income Tax, Social Security, and Medicare withheld from the employees checks) and close the business formally with the IRS.

We assisted him with the closure of the business and gave him the appropriate payoff for the trust fund. The business owed closed to $50,000 in 941 tax liabilities upon closure, the trust fund was $30,000. The client paid the $30,000 in trust fund with one check. We filed all the final returns, final financial statements, recorded the final bank statements, and informed the IRS of the closure. We also disclosed the asset situation (taken over by a factor at closing). Upon finalizing all the documentation informing the IRS of the dissolution, the IRS determined the business liability to be currently non-collectible.

So remember, obtaining all the required information prior to addressing the IRS liability is key in obtaining a successful resolution!

Tis the Season for Filing Returns!

2011-03-24T10:53:00.000-07:00

Tax season is upon us and the deadline is quickly approaching to make sure all personal income tax returns are filed with the IRS and State taxing authorities. Please be sure to get your tax return information over to your tax preparer or CPA as quickly as possible.

Keep in mind, we now prepare all types of returns here at Larson Financial, Inc. We prepare 1120's, 1065's, 941's, 940's, 1040's and all State returns associated with each particular entity.

Please call today for a free quote and we will be sure to prepare and finalize your tax returns!

Cheers!

Enrolled To Practice Before the Internal Revenue Service

2010-09-27T19:35:00.000-07:00

After over 5 months of studying and 300 hours of reviewing Gleim material I passed the Special Enrolled Agent Exam! I have received my enrollment card and number and I am now permitted to represent taxpayers before the IRS. Please feel free to call, write, or email to ask questions about how to study and sit for the EA exam. I will be happy to entertain any questions anyone may have.

I want to thank my family, friends, co-workers, and Larson Financial, Inc. for all of the support I received during my studies and preparation!

Respectfully,

Mike Wallen, EA

Partial Pay IA for business and individual!

2010-09-27T19:24:00.000-07:00

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.

Cheers!

New Company Saved From Alter Ego Assessment of $82,000!

2010-09-14T19:39:00.000-07:00

We have a client in the State of New York that runs a Comedy Club. Prior to hiring us for the outstanding State of New York tax issues they had a third party come in and purchase the assets, goodwill, and inventory from our client. However, they conducted this transaction without regard to the State Tax Liens in place covering over $82,000 in sales tax and withholding liability. The State of New York was attempting to assess the buyer with the entirety of the liability owed!

We had to go back and recreate the transaction by showing the State of New York the purchase agreement, sales documents, and have the client cut a check to the State in the amount of $6,000 and another $1,000 or $2,000 to cover the sales tax in relation to the transaction. Yes, the State of New York charges sales tax on the resale of assets, licensing, inventory, and goodwill in a business transaction. Unbelievable. We had to go through the Bulk Sale Unit, which by State law a buyer and seller have only 15 days to report the transaction and pay either the liability owed by the seller in full, or pay for the value of the assets along with the applicable tax. If they do not abide by this rule the buyer can be assessed the liability.

After negotiations with the bulk sale unit and the filing of an appeal with the State of New York they agreed to allow us a conciliation conference to discuss the issues with the transaction. We provided all of the sales documents and a copy of the payment that was made to the State when we went back to correct the problem.

Last week we heard back from the State of New York and they decided not to assess the new business with the $82,000 and accept the payment made, with penalty and interest totaling $3,000 to settle the issue. Therefore all in all we saved the new business from lien filings, levies, and other collection action the State might take with regard to the debt. Oh yeah, we also saved them $73,000!!

Additional Tax Assessed but Penalty Abated

2010-08-04T20:11:00.000-07:00

I had a gentlemen come to me recently with a letter called a CP2000. These letters indicate a taxpayer owes a tax because of a difference in the calculation on the return versus what the IRS has on record for the tax year. Most of the time the additional tax is in direct relation to cancellation of debt, a 1099 that was never received, interest paid by a bank, early withdrawal tax and penalty on a retirement distribution not originally included on the return but reported to the IRS. I think you get my point.

We read through the letter, compared it to his tax return and the increase in tax was correct. He was going to owe an additional $10,000 for the tax year. A year in which he owed nothing. The additional penalty was $2,000. I asked the gentlemen if he owed taxes previously, he indicated he has never owed in his life.

I gave him instructions to pay the tax in full, which he could do, so he cut a check for $10,000 (rounded up for simplicity) and we sent it in to the IRS prior to the expiration on the letter for assessment of the additional tax (very important to pay by the deadline date on the letter in order to save additional interest accruals). We also asked the IRS to abate the penalty under the first time abatement criteria whereby a taxpayer qualifies if they have never owed previously. After a few follow up phone calls, the IRS agreed to abate the penalty in full and he simply had to pay the remaining interest (we asked for the interest to be abated, doesn't hurt to try, but it was the interest calculated since the original tax return would have been due, along with the original payment date of April 15th, 2009. Interest in relation to the tax cannot be abated).

Our client was very happy with the outcome and it all was resolved in approximately 90 days or so.

So check twice when you receive a CP2000 or additional tax assessment letter, it may be to your benefit to do a little homework!

Unemployed? Currently Non - Collectible May Be Right For You!

2010-07-08T19:29:00.000-07:00

Are you currently unemployed. Did your business shut down because of the taxing authorities or other creditors? Are you left with nothing but a large trust fund tax bill? If so, think currently non-collectible.

Our client was shut down by the utility company for unpaid electric bills and he could not afford to continue to keep his business in operations. However, he was left with a tax bill of $37,000. He is a relatively young guy and wanted some time to think, get back on his feet, and get a job prior to seeking a resolution of his tax debt. The best strategy for him at this time is currently non-collectible. We sent in the financial statement form to the IRS (Form 433-F) and included copies of bills, unpaid bills, late bills and shut off notices. Clearly the client was barely making it. Therefore we asked the IRS to put the case into non-collectible.

The IRS granted our request and the client will not be responsible for paying on his tax bill for a period of at least 1 year. Sometimes our client's simply need time to figure out what will work best for them. In this case, CNC was the perfect strategy and when our client begins working again, we will investigate other strategies for him to pursue.

Saved From Siezure!

2010-06-23T18:41:00.000-07:00

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!

IRS Error Corrected Results in $9,000 abatement

2010-06-03T19:25:00.000-07:00

Today I found an IRS error that helped save a client $9,000. The taxpayer filed his 2008 941 for the 4th Quarter and according to our records he had a zero balance due. Our records retrieved from the Internal Revenue Service also showed the taxpayer had a balance due in the amount of $9,000 for a different quarter, the 1st Quarter of 2009. When we confronted the client with this issue he claimed he didn't have any employees during the 1st Quarter of 2009. We needed to dig deeper.

I asked his CPA for her records. She didn't have any record of filing the 941 for the 1st Quarter of 2009. So I then asked for a copy of the 4th Quarter return for 2008. She gave me not only the return but a 941C which is a corrected version of the same return. They had found some errors and needed to make adjustments. Oddly enough the 4th Quarter tax due was the same amount reported on the 1st Quarter of 2009 IRS transcript record. In the tax world, this rarely ever happens. Therefore, we needed to contact the IRS immediately to see if they posted the return incorrectly.

When I called the IRS today, I was on hold with the representative for over an hour (at $175.00 per hour that is quite the job). After working with him, he picked up on the same error. Apparently, the IRS had incorrectly posted the 4th Quarter return to the 1st Quarter of 2009, without crediting the payments (Federal Tax Deposits) and therefore showed a balance due of $9,000. We asked what the next steps were and he said, "nothing, we will send a notice in 4 weeks informing you of the adjustment, you will not need to do anything further on your end". When we informed our client he was very happy. His debt went from $23,000 down to $14,000!

We will keep you posted as the progress of this file moves forward. We are getting ready to execute a shutdown strategy that could save the taxpayer another $12,000!

$300,000 owed, $5,000 paid!

2010-06-01T18:19:00.000-07:00

Mr. Brewer came to me in 2006 with more problems than you can imagine. His business was falling apart, his younger sister had embezzled money, and his business owed the IRS well over $1,000,000 in employment tax debt.

We had a lot of work to do before we could simply file and Offer to settle the debt for less than what was owed. We had to file multiple returns that were delinquent, shut down the business, make sure all debts that could be assessed against Mr. Brewer were in fact already assessed, and make sure the IRS stayed off of his back.

Further, we tried a few different paths prior to settling the debt under Doubt as to Liability. At first, we simply structured an installment agreement. Our client paid on this installment agreement for a little over a year. We then filed for abatement of the penalty, the debt was all Civil Penalty assessed to him personally. The penalty abatement was rejected and we lost in appeals as well. The IRS did not have any real concrete data other than the fact Mr. Brewer was an officer of the corporation and was responsible for the debts that faced him.

Back to the drawing board. . .

After much debate and thought, we decided to file for Doubt as to Liability. Doubt as to Liability means exactly what it says, knowing a liability exists, having the assets to pay the liability, but factually doubting the liability should have been assessed in the first place. We filed the Offer for $5,000 and some change, which equaled one period of liability for Mr. Brewer. Our offer was first rejected, indicating the IRS did not have enough factual data disproving the fact that Mr. Brewer should not have been assessed. We appealed this decision immediately.

After dealing with appeals for awhile, we ordered a new document. A document we had not had in the past but felt it would be helpful. We submitted an FOIA request. The Freedom of Information Act Request translates to information the IRS has but the client does not, nor does the practitioner. This was our key to success, the icing on the cake and. . . well you understand what I am getting at. After much debate, the IRS saw that Mr. Brewer's sister did in fact hide all IRS findings from Mr. Brewer, including visits by IRS personnel, IRS correspondence, and deadlines set forth. The client never signed a payroll check, a payroll tax return, or any other check of substantiative value. We received the acceptance letter a little over two months ago, the client paid the offer and the tax liens were released a few weeks back.

We can say proudly that our client was found innocent in a world where one is guilty at first glance.

$41,000 Civil Penalty Reduced to Zero!

2010-05-10T16:58:00.000-07:00

This was a different case and something that I had not come across in a long time. When the IRS notices that a business has not filed, filed timely, or filed in error all the wage statements (Form W-2 and W-3) for a particular tax year they assess a penalty. Usually the penalty is $100 per form, or it can be as high as 10% of the gross figure on the actual wage statement. In this case, the penalty was $41,000. The other downfall to the IRS systematic assessments is they do not notify a business taxpayer until 4 years later. They are very far behind with catching up with one another and trying to get two government agencies on the same page is like trying to balance a two golf balls on top of one another.

Our client has been with us for sometime and we have actually already negotiated an installment agreement on the 941 and 940 balance dues. However, the Civil Penalty assessment against the business put this agreement at risk. We immediately filed for abatement of the Civil Penalty and sent it to the appropriate office (we also filed for a collection due process appeal on the lien). It took about 3 months to hear back but when we finally did the IRS agreed to abate all of the penalty!! It will take approximately 30 - 60 days for a release of tax lien, but their debt size has been cut by 25%! The reasons for filing for abatement is the fact they had arson take place (2 fires at the business location) that caused them to lose a lot of paperwork to fire damage. Our claim was in direct relation to the damage created and the fact the business had to recreate these same documents in order to file them with the Social Security Administration. P.S. The IRS administers the penalty for late filing and the Social Security Administration keeps the forms on file.

We still have another abatement request in for this particular (in relation to the 940 and 941 tax debts) taxpayer and hope to see similar results!

Offer Settled for 5% Of The Liability!

2010-04-02T19:40:00.000-07:00

The client came to us last fall with a balance due of $20,000 in personal taxes owed to the IRS. The client had experienced job loss and had to cash out his 401k in order to pay bills and survive on a day to day basis. As you may not be aware, if one cashes in a 401k prior to the necessary retirement age, one can expect to owe a tax and a 10% early withdrawal penalty. This was the case with our client and therefore he came to us here at Larson Financial, Inc. to seek assistance with his outstanding tax debts.

At first glance it appeared the client had a decent job and might be able to afford a $333.00 payment to the IRS on a monthly basis. ($333.00 would be the payment based on a streamlined agreement for the debt to be paid in under 60 months). After further financial review, we concluded with the taxpayer that he could not afford such a payment. We decided to look at his financial portrait again and see if he might qualify for an Offer In Compromise.

After reviewing his financial statement (Form 433-A), all the taxpayer had available to him was a small brokerage account in his name. It had approximately $1,100 in the account. When calculating an Offer In Compromise one must offer the net equity in assets and available income. He spent well below under the national standards for food, clothing, and miscellaneous as well as housing and utilities, transportation, and health care expenses. His income was not that high either. Therefore, we felt he qualified based on his personal financial data. We decided to file for an Offer In Compromise. After waiting for 3 or 4 months, and providing an additional update as to the value of the brokerage account, the Internal Revenue Service accepted our Offer in the amount of $1,100! The taxpayer was more than appreciative and agreed to be a reference for us at Larson Financial, Inc!!

We are pleased to assist with the resolution of another satisfied customer.

State of Kansas Partial Pay

2010-03-20T07:43:00.000-07:00

We have worked with the State of Kansas Department of Revenue with regard to many different taxpayers. For the record the State taxing authorities are much more aggressive than the Internal Revenue Service. This means that if a business owes a tax the State will not hesitate to Seize, Shut Down, Levy Bank Accounts, Levy Customers, etc., to collect the tax.

This particular client came to us in the fall of 2009. She is a sports goods and outdoor equipment rental and sales store. She houses several different types of equipment typically used for summer sporting. However, with winter approaching in 2008 and with the downturn in the economy, she was unable to pay or file her sales tax returns and withholding returns for 2008 and a good part of 2009. The State of Kansas was getting ready to shut her down when she came to us.

After 60 days we were able to get the taxpayer current with her tax returns, she was missing 15 or 20 sales and use (these are filed monthly) and several quarterly and annual returns. Once the returns were filed the State came up with a balance due of over $120,000. Typically the State will allow for repayment of the debt within 5 years. However, our client could not afford to pay $2,500 or $3,000 per month toward the outstanding debt. As such, we sent in a financial statement for the business as well a personal financial statement for the officer of the company. This financial statement concluded she could only afford to pay $1,500 per month, an amount that would service the debt in 120 months versus 60. The State finally agreed and accepted our proposal. We were thrilled and so was our client as she could stay in business, afford to repay her debt and keep up with her current obligations. The client is another satisfied customer and agreed to be a reference as well.

Volunteer Income Tax Assistance Program

2010-03-10T11:40:00.000-08:00

The IRS offers a service to allow taxpayers to get their individual and state tax returns prepared for free. There are a few limitations such as income and types of schedules used on each return, however, it is great for those who qualify. I currently volunteer for the IRS in Boulder at the Front Range Community College Boulder Campus Site. On the right hand side of my blog there is a link called VITA and it will take you to the respective IRS web page that offers site locations, information on the VITA program, and more specifically what taxpayer's need to bring to get their returns completed.

I have been volunteering since the first week of February and will continue through until April 10th. I love working with taxpayers and assisting them with their returns, questions, and of course letting them know what their refund will be. Feel free to drop by, our hours of operation are 10 a.m. to 2 p.m. every Saturday with the exception of March 20th and March 27th.

Links and Forms

2010-03-09T21:45:00.000-08:00

I recently added a feature to my blog to include various webpages and forms that relate to the tax resolution industry and most importantly my clients and thier specific needs. Please take time to view all of the links. Following I have provided a breif breakdown of the specific links and pages:

- Larson Financial, Inc. - the homepage of the Larson Financial; the company I work with
- Internal Revenue Service - the homepage of the Internal Revenue Service, I find various news, publications, and other handy facts at this link
- Power of Attorney forms, Financial Statement forms, and IRS pages dedicated to explaining Installment Agreements and Offers. Please take a look as it will give you some insight as to how the IRS explains each specific resolution. Also, if you forgot a form or need one please utilize this tool to download the applicable form
- IRS forms and instrutions (2009 and prior tax forms if needed)
- Where to file addresses (more important than you think when you need a quick address of where to file a return with payment or without!)

Enjoy and let me know if any changes, subtractions or additions can be made.

$56,000 Reduced to a $300 Refund!

2010-03-07T19:12:00.001-08:00

We recently worked with a taxpayer who owed Use Tax to the City of Golden. When the taxpayer came to us last fall he owed $56,000 to the City of Golden, figures which stemmed from an Audit. Further, the day he hired us the City was getting ready to shut his doors. When we spoke with the City Revenue Agent she indicated she was on her way out to the business location with the Sheriff. We knew the City meant business so we got to work right away.

After speaking with the City it was made apparent to us the client did not supply the City with information to allow them to prepare and assist him with the returns and payment of Use Tax. For those of you who are not aware Use Tax is based on the value of equipment, machinery, tools, etc that are "used" within the business. The City usually assesses a 3% tax based on the value of the equipment used within their jurisdiction. However, the figures used by the State were based on preliminary lists of tools, equipment and machinery, half of which was not used in the business. We had to convince the State to first back off of seizure, which they did. They allowed us time, (1 day) to provide the additional information they had been asking for to come up with a figure that was accurate for the Use Tax. We informed the client of the good news (The City would allow him to remain in business) and he delivered the majority of the documents the very next day.

After months of research, sending in supporting documents to the City, working with the taxpayer and the City, they finally arrived at a figure. The taxpayer had been forced to pay $10,000 to the City prior to working with us. Therefore, he had a credit with the City of Golden. The tax owed for the periods in question, over 5 years worth of tax periods, came to around $9,700. When it was all said and done, he was issued a refund. All liens were released and the taxpayer will continue to operate a profitable business without fear of enforcement.

Tax Debt Reduced To A Refund!

2010-03-01T16:08:00.000-08:00

Here at Larson Financial, Inc. we dedicate ourselves to assisting those with their tax issues, whether they are actual or substituted debts. I recently worked with a taxpayer to reduce two balance dues with the IRS and the State of New York to refunds.

We had been working with the taxpayer since April of 2009. At that point in time he had an outstanding debt with the IRS in the amount of $25,000 with several missing returns (2003 through 2008 Personal Income Tax Returns). We were able to successfully keep the Internal Revenue Service from taking any aggressive collection action while we allowed the taxpayer time (6 months or so) to work with his CPA to get the returns completed. Once the returns were completed, his balance due with the IRS was processed to zero and he received a refund of $2,000 last month. The refund was attributed to the fact he had been levied in the past and the monies were applied to the Substituted balance due. Therefore, he was entitled to receive this money back.

With regard to the State of New York, he had actually paid his assessed balance due for the 2003 and 2004 tax years. Meanwhile, he filed all of the State of New York returns to allow for processing. Once the returns processed we began our follow up for refund. Now here is the tricky part, because the modules were old, he was not entitled to a tax refund of what monies were withheld for that year, or any credits. However, he paid approximately $25,000 on the assessed balance in January of 2009, therefore, he was entitled to receive this money back, with interest. Finally, between January of 2010 and February of 2010 the refunds were processed and he was issued two checks.

We were informed today that all checks have been received totaling just over $27,000. Further, this particular client agreed to be a reference as well.

Who is Joe Stack?

2010-02-18T20:35:00.000-08:00

I felt compelled to write about the recent tragedy that took place today in Austin, Texas. I have dealt with people of this nature before as a practitioner and never seem to agree with the selfish nature which they represent. I did not look too far into it, but I am assuming Joe Stack had a family, friends, parents, and siblings. I am of the opinion flying a plane into a building was a self-centered, dangerous and hurtful thing to do, not only to the people that were close to him, but to the people affected by the crash. It absolutely infuriates me that someone could blame a government agency for all of their financial and emotional woes.

I read through Joe Stack's memorandum or suicide note, his rants and raves concerning our government, the health care system, and his inability to be successful in a country where apparently he was being held back by the tax code. He writes that he was upset with the IRS although it is not clear what he is upset over. As a practitioner we see these types of people come across our desks from time to time, thankfully not as often as of late. We usually call them "tax protestors". However, it is virtually impossible to assist a taxpayer who feels the "system" within which we live is corrupt and unfair. Stack continued to go on about the rich and large corporations controlling smaller economies, particually Austin. I have one statement for an individual of this nature; if you do not agree with the tax code, the American Dream, and how our wonderful country operates; giving us roads, schools, the best health care in the world, and the freedom to become anyone we want, then leave this country to find greener (or shadier) pastures elsewhere. Do we forget how lucky we are to be able to drive to work in the morning without having to show our passport at every stop sign? Do we forget we don't have militia monitoring our every move when we need to go out shopping for groceries, go to the movies, the book store? Do we forget that we become anyone we want with hard work, education, and effort?

Stack continues to say that he didn't file for several years, and when he went to file, he apparantly owed money to the IRS. He then seems to point the blame yet again at his accountant for missing un-reported income. He goes on to say he missed the appeals timeline and blames the government for this. When you live in a country as affluent as ours, it takes quite a bit of money, so much money we are in the worst economic crisis of our times, to keep this country afloat and operating. If you have ever used a public road, ate lunch at a park, walked on a sidewalk, attended school, all without the threats of terrorism breathing down your neck, then yes, we must pay a tax of some sort. I am sorry to say that Stack was mistaken when he took his own life. He seemed to be trying to get away from one of the two things we can never get away from; taxes. I think we can all agree on the second thing we cannot get away from.

It is sad to see the day when Federal Employees, or any employee or hard working American for that matter does not feel safe going to work in the morning. I have worked for everything I have and will continue to do so. I hope that no one ever tries to take it away because they don't feel it's fair, legal, or equitable to pay income tax.

My prayers go out to the families of any victims, and the victims themselves stemming from today's tragedy.

OIC Settled for $40,000

2010-01-26T10:15:00.000-08:00

This particular taxpayer has owed the IRS for the last 10 years. His liability stems back to two business debts, totaling over $1,000,000 combined. He has been my client since 2004. He owned two businesses of which were Alternative Health Care and Choice Health Care. Mr. Alfred Givens was more than excited to hear our recent news concerning his account. He has since been assessed personally for the tax debt the business accrued.

The history of the account shows the client was unable to make federal tax deposits during his existence with the first business and finally was able to get current with his second business. However, due to his inability to continue to stay current and pay back the past due debt on a monthly timetable, he decided to close his business.

The IRS assessed the trust fund recovery penalty against our client personally and we have since completed two resolutions on his behalf. First and foremost, we were able to discharge a tax lien on a piece of property. The property sold for a little over $60,000 and after it was all said and done the IRS realized $55,000. Secondly, he had another piece of property and this allowed us to finally file for settlement.

We filed our Offer In Compromise in June of 2009. We submitted an OIC for $40,000 due to the fact our client's last piece of property (commercial) was going to sell this past year. Finally in December our client found a buyer and away we went. After it is all said and done we have saved our client well over $910,000 in tax debt as our final OIC was settled for $40,000. The closing should take place in the next week and will allow for all tax liens against our client to be released in full!

We are very excited to bring these issues to a close and our taxpayer can finally live his life again!

$60,000 Savings in Hawaii

2010-01-11T21:35:00.000-08:00

Aloha! I wanted to tell my readers about the most recent successful resolution for our client located in the beautiful State of Hawaii. He has agreed to be on our reference list at Larson Financial, Inc. and has also agreed to submit a client testimonial. Feel free to check it out on our website, which is linked on my homepage.

We worked with the taxpayer and the IRS to establish an installment agreement on a debt of over $70,000. The taxpayer will be paying $140.00 a month for the next 7 years (remaining life on the collection statute). While the payment plan will go for a long period of time, as long as he remains current and compliant, files timely, and pays his installment agreement, the total payout will be $11,760.00. Therefore, over time, he will save at the very least $60,000, not including accruals which will amount to $120,000 total with penalty and interest over the 7 year period.

This strategy was very beneficial to our client due to the fact there was so much to be had in net savings. We also resolved a State of Hawaii liability for the same client, he owed approximately $12,000. We set up a long term payment plan of $150.00 per month that will be revisited in 1 year due to limitations on their payment system.

Our client is satisfied not only because of the savings, but the headaches and stresses that were removed from his life due to our representation on his behalf at Larson Financial.

Bank Levies?

2010-01-06T19:37:00.000-08:00

Has the IRS ever threatened to Levy your bank accounts? Has the IRS ever taken money out of your bank account? If so, it is imperative to know how to handle a situation when a levy arises.

First and foremost, please give us a call to consult as it will be difficult to get a levy released or any money back once you have been levied. However, the IRS will consider a release based on a few items; has the levy caused a hardship, caused payroll to bounce, or caused current taxes to go unpaid? When we deal with ACS specifically or a Revenue Officer it is important to make a case before one calls the IRS and complains about the levy. A taxpayer or representative must know a few things first:

- Has the levy actually frozen monies yet?
- Has the levy caused checks to bounce?
- How much has the levy frozen?
- What bank accounts, how many accounts, and at which bank was the levy applied to
- Obtain the fax, phone, and contact for the legal department through the bank handling the levy (this may be different than the actual branch bank)?
- What items will not clear or be paid due to the levy (payroll, tax deposits, lease, mortgage, unpaid bills, etc.)?
- Will the levy cause a hardship (foreclosure on home or business location, 3 day notice to vacate on a lease, shut off notice from Electric or Power company, water turn off notice, etc.)?

The above items will assist us in preparation for dealing with a possible release. Remember, there is only a 21 day time period on bank levies, therefore, a taxpayer or his/her representative must act quickly. Once the money is gone, it is gone.

If you are dealing with a levy, or have been threatened by an IRS representative or communication indicating you will be levied, call immediately to discuss the possible resolution thereof.

IRS Tax Lien? Selling Real Property?

2010-01-05T19:47:00.000-08:00

If you or someone you know is selling real property, and there is an IRS tax lien in the way, there is a specific process to be utilized.

A Certificate of Discharge Application is imperative if one is planning on selling or buying real property. Whether the IRS tax lien covers the full amount of equity in the property, part of it, or none, it is still important to notify the IRS of the transaction. If something gets missed, you or someone you know may purchase property with a Lien still in place (hard to believe but I have seen it happen before).

Most recently, we assisted a taxpayer who had a lien for approximately $150,000. The property was selling for $150,000, but the selling proceeds were being split 3 ways, 2 parties did not have any tax liens, one did. Therefore, with all the appropriate paperwork required by the Internal Revenue Service in, the IRS discharged the tax lien to allow the sale of property to take place, 1/3 of the proceeds to go to the IRS and the remainder to go to each seller.

This process can be complicated and if there is a document missing, it can delay processing. Much like the subordination process, the IRS typically takes 30 days to finalize an application. Therefore, it is imperative to get an early jump on the application and make sure follow up's are completed with each appropriate party. As always, feel free to call me concerning this process at it can be a time consuming, lengthy, and complicated one.

Back At It!

2010-01-05T19:37:00.000-08:00

I must apologize to my readers for taking so long in between posts. I was working intensely on school projects as well as work at Larson Financial. I will attempt to continue to post information concerning the IRS and the work I have completed for my clients.

I hope to be of service to all involved with the tax community at every level.

Mike

Does Your Business Use Factoring?

2010-01-05T19:25:00.000-08:00

Many businesses depend on others for financing, such as banks and more specifically, factoring companies. Many of these factoring companies will factor receivables up until there is an IRS tax lien of record. When a tax lien is filed, usually for outstanding payroll taxes, the factoring company can no longer continue to offer funding to a business. Therefore, we must step in immediately to negotiate between our client, the factoring company and the IRS.

Working with the IRS as many of you know can be a grueling process. I highly suggest you contact me at Larson Financial for assistance in dealing with the IRS at any level, let alone dealing with a factoring company and a tax lien. Once we find out a company works with a factoring company, we must endeavor to secure a subordination of Federal Tax Lien. Once secured, the factoring company will be in first place and thus there is little or no risk for them to fund. However, prior to, a factoring company can delay funding for a short to a long period of time, which can delay a business from operating. The subordination process can take up to 30 days, therefore, it is imperative to keep the IRS from filing a tax lien and if they do, secure a subordination immediately. There is a process of course, as with any resolution at the IRS level, but they will work with you and process your claim usually within 30 days. Further, this type of process can speed up resolution of the case, as our clients realize the risk and want to get all resolved as soon as possible.

As always, it is imperative that a business remain current and compliant throughout the process as further accruals can delay any resolution from taking place.

We recently were able to work between the IRS, our client, and the factoring company to enable the factor to continue to fund our client with the lien in place, while our subordination application was pending. Once agreed to, it is usually only agreed to for a 90 day term, therefore we must revisit if there is not a resolution in place such as an installment agreement. We were able to work with the IRS on a weekly basis until our application was approved. Now that it has been approved, we will be working with the IRS to secure an installment agreement to satisfy the debt over time.

I hope this short memo helps explain the importance of dealing with the IRS and more importantly factoring companies.

Larson Financial, Inc.

2009-05-29T20:04:00.000-07:00

I recently began working for the Larson brothers at Larson Financial, Inc. in Westminster, Colorado. I will look forward to providing client's with impeccable service and adding to the already sterling reputation of Larson Financial. I will continue to work with small to medium size business owners and individual clients who owe the IRS and the State taxing authorities. Check out my updated profile on the left hand side of the page for my contact information for more details.

There will be many more resolution stories to come!

OIC Settlement for $13,000.00.

2009-04-11T16:13:00.000-07:00

Mr. Nusz is one of the most appreciative client's I have ever had the pleasure of working with. Mr. David Nusz came to us in the spring of 2007 shortly after I began working with Quantum.

Mr. Nusz lives in Arizona with his family. He works as a handy man and does not have much, nor does he expect much. He was having trouble with the IRS when he came to us with his returns as well as the outstanding debt facing him. First and foremost, he needed assistance with the filing of his returns. We assisted him with filing the correct returns and reporting his income correctly as well. As a self-employed wage earner a lot of individuals do not understand or know how exactly to report and take out tax on the income they receive. The IRS determined he owed close to $135,000.00 after all his returns have posted. We came to the conclusion that Mr. Nusz qualified for the IRS Offer In Compromise Program. The program and its details can be viewed here IRS OIC PROGRAM.

We addressed his situation and ability to repay, put together his financial statement, and submitted the OIC on his behalf. Ultimately, we ended up settling his OIC for pennies on the dollar. Mr. Nusz indicated to us that he had done some homework on the IRS and figured he was in the lower percentage of taxpayers of whom are granted relief. He thanks us just about every other week and not only has he agreed to be a reference for myself and my team, but a reference on this website. I will list his contact information later in the week.

What made this client so special was his thankfulness and appreciation for what we do and he is glad he can "get back to living his life again".

OIC SETTLEMENT FOR A FRACTION OF A PENNY!

2009-04-11T16:02:00.000-07:00

We recently received news of an Offer In Compromise and its recommended acceptance in the amount of $600.00. This is a very rare case.

Now, let me tell you about the negotiation work that went into this Offer In Compromise. It was not as easy as simply submitting his financial statement and wishing and hoping for acceptance. We went through a lot of work to get the client where he is today with his IRS and State of NM situation.

Mr. Sykes has been a client since I have worked with Quantum Financial Solutions. He works for an auto detailing business out of New Mexico. We filed an Offer for this gentleman about 1 year ago. We had a recommendation for acceptance at the time for about $10,000.00. Unfortunately, his 2004 return was audited thus resulting in the return of his Offer In Compromise. We had to wait out the audit and submission of an amended return before re-filing for another OIC.

Back to the drawing board.

In between the audit of his return and the denial of our first OIC, we set up a small payment plan for the State of New Mexico in the amount of $100.00 per month. This is considered a partial payment plan and I will explain how this strategy works in another post. Now, on to the Offer.

Finally, after resubmitting the new OIC, we received correspondence back asking about his involvement in Dent Express, LLC. He used to be a managing member but has since passed on his interest to his partner. We explained the issues at hand to the OIC specialist and submitted all the necessary documentation she had asked for concerning the business.

On Friday, April 10th, we received verification of her recommended acceptance. Mr. Sykes owes the IRS $327,000.00. He fits into a category all on his own. It's not just pennies on the dollar, its fractions of pennies on the dollar. Mr. Sykes and myself are keeping our fingers crossed this time.

We will be following up with the IRS recommendation and release of liens in the next 30 days. I anticipate Mr. Sykes being listed as a reference in the near future.

Holding for ACS

2009-03-30T20:34:00.001-07:00

The beauty of our work, or should I say the beast of our work is holding for ACS (Automated Collection System) or Group. A brief IRS explanation of ACS and its processes can be read here.

One of the most valuable services we provide for our clients is piece of mind and time. Our clients need time free from enforcement action to allow us to work toward providing the service they hired us for. Usually when are clients come aboard they have levies in place on their wages or bank accounts. Our goal is to stop these aggressive measures from taking place and advise the IRS we want to resolve the account. In order to bring resolve to the situation we need time free from enforcement or as we call it, "a hold on the account".

When a case first comes aboard we complete an initial investigation, i.e. find out how much the client owes, see if they have missing returns, check the transcript record for final notices that may have been filed, etc. In order to secure this information we file a form called a 2848 and another form called an 8821. We then make it a point to contact ACS, to make sure there is a substantial hold on the account to buy time for us to prepare and submit a financial statement, if necessary, and a proposal. This time, usually 30 - 60 days depending on the circumstance, is crucial to keeping the client protected while we endeavor to seek the most favorable resolution. We usually spend an hour on the phone with the IRS. As painstaking as it might be, it provides our clients with the piece of mind that they need.

If there is one thing that is certain with the IRS it is deadlines. If deadlines are met and upheld, the IRS will work with you to establish a resolution.

This post is a glimpse into workings of the IRS.

Reduced to a Refund

2009-03-30T14:06:00.000-07:00

Ms. Austerman came to us in July of 2008 with debts to the IRS totaling $44,000.00. After further research we came to the conclusion the IRS had filed the 2003 return for her. These are called Substitute for Returns or SFR's. When the IRS files SFR's for an individual the IRS cannot take into account any deductions, itemization's, or losses. Therefore, the IRS will hold an individual to the maximum amount owed by law. The IRS had levied her bank accounts prior to retaining our services and had continued to garnish her Social Security Income, her only source of income at the time.

As soon as we found out the IRS was attempting to collect on a substitute return we referred her to our in house preparer. We were able to prepare her 2003 return along with the others (2004 through 2007) and get them in to the IRS by the specified deadlines. Due to the IRS wanting to aggressively collect on the outstanding debt of $44,000.00 we had to complete follow ups throughout the duration of her case. These calls were of utmost importance in order to ensure the IRS did not take any additional aggressive measures to collect, i.e. bank levies, seizure, or wage garnishments. With the returns in and processed she received refunds totaling $15,000.00. The IRS also released the Social Security Garnishment that was in place.

We are still working with Ms. Austerman to get her 1999 through 2002 returns filed before the IRS attempts to do the same thing.

Lesson: File all returns promptly before the IRS files them for you.

Liens Released!!

2009-03-24T13:36:00.000-07:00

This particular taxpayer came to us in the late fall of 2008. He had an issue with a few IRS tax liens. When he came to us he was unclear as to if he owed any money, had liens on record, or what he should do about it. After further investigation we figured out the statute had expired on many of the old debts and he had actually paid off the others. We touched base with the IRS and explained the situation and it appeared they had never officially released the tax liens on all debts that were owed prior. They released the liens in question that day and we forwarded the releases to the client for recording purposes. He was extremely happy with our services and was excited to hear the liens that were giving him so much trouble personally, were finally released. He can now go on with his life without fear of the IRS attempting to collect against him.

Sometimes when a client comes to us they are unsure where to turn. The notices they receive read like stereo instructions are not very clear in explaining what to do. Mr. Keplinger knew he was still receiving notices but was unsure on how to proceed. By hiring our services he was able to sleep at night knowing we were facing these issues for him.

Mr. Richard R. Keplinger, is now on our reference list. He has agreed to make himself available for potential clients. Mr. Keplinger can be reached at 304.851.3114.

Offer In Compromise Settled for $5,693.00!

2009-03-23T15:30:00.001-07:00

We are required to submit a resolution story every month here at Quantum Financial Solutions. Last month, we decided to submit a story about a client who has Kidney Disease and is currently on the list for a transplant. This individual will also be a reference in the upcoming months. I have decided to leave his name out of the post for confidentiality purposes.

We filed an Offer In Compromise for the 1040 debt totaling $202,075.00 covering several different years worth of debt. We settled their outstanding debts for $5,693.00. The client has since paid this amount in full by borrowing from friends and family. The tax liens have also been released in full.

Now, this is not a standard resolution. The client rents a home, has a car that is paid off, does not make too much income and his health is declining. In other words, he did not show the ability to pay the entirety of the debt. I hope this helps clear up any misconceptions of the Offer In Compromise program.

I chose this post for my first resolution post for obvious reasons. It is glitzy, glamorous and fits the bill for the ad, i.e. pennies on the dollar. As you will see, each resolution carries a small story with it, either how the client fell behind, what they did to resolve the issue, what we have done to assist, etc. In this case, the client had tried to file an Offer on his own and was unsuccessful. We assisted him by exercising the utmost professionalism in dealing with the IRS and for this reason, and many others, we were successful.

Intro To Resolution

2009-03-23T15:09:00.001-07:00

When one is dealing with the IRS there are a mountain of issues to get through. First and foremost, where does one begin? There are so many letters, calls, notices, numbers and amounts that it would be impossible for the normal individual or business owner to keep up with it. Therefore, the goal of this site is to let others know that there is a resolution possible for each and every situation.

This site is dedicated to the former, current and future client's. Sure, everyone wants to pay pennies on the dollar, have penalties waived, or not pay at all. This is not what the sites intention is. Nor shall anyone reading these posts derive information from this site and attempt to connect it or utilize it for their own well being. Please see the Circular 230 reference in my introduction.

Ultimately there is a resolution for everyone and every business out there. It's up to you if you want to resolve it and work with the IRS or State to get it done. Working through a professional is recommended, especially for complex business tax issues as well as complex lien or levy issues that an individual may be facing. I urge you to take the first step and consult with someone concerning your situation. And furthermore, do your homework on the company you will be hiring.

Therefore, let the site begin. I will attempt to post one resolution per week, starting with my oldest resolutions and going up through current.

Thanks for visiting my blog.

Mike Wallen