IRS Resolution

AUDIT RESULTS TURNED OVER FROM $80,000 to $3,000!!

Our client came to us with IRS audit determination showing he had a proposed tax change of $80,000. The IRS audit was over at that point, but still within the timeframes of appealing or possibly presenting new information. We immediately contacted the auditor and asked for an extension of time, a new face to face meeting, and the opportunity to present information backing up the expenses for contract labor, car and truck expenses, as well as insurance. We were able to work with the client, his insurance representative, as well as the IRS in overturning the changes. We presented information backing up most of the expenses, and the tax change was only $3,000. We just received the results of the IRS audit and couldn’t be more pleased!

SAVINGS OF OVER $45,000!!

A client came to us with IRS penalty and interest charges of over $45,000. The IRS penalty accrued due to failure to file certain forms required for his business and how the business is set up and taxed. The client went through embezzlement, divorce, as well as had some health issues of his own. He was distracted from running the business properly to say the least. Not only that, his previous accountant had also fallen ill, and failed to inform the new accountant of the filing requirement. We wrote in to the IRS concerning the penalties and interest for two tax years (2013 and 2014), and were successful with a full IRS penalty abatement!!

SAVINGS OF OVER $400,000!!

Our client helped run a business for several years. The business had accrued over $1.5m in tax liability.  We have the business on a payment plan, however, when employment taxes are accrued, the IRS has a process whereby they assess trust fund liability to the individual officers, managers, employees, and/or anyone listed on the bank signature card. After several years of working with this taxpayer we were finally in a position to file an Offer In Compromise for him.  Our Offer was for $500. The taxpayer doesn’t own a home, no longer works, and is on SSA benefits. His son tragically died last year as well in a car accident. We are more than pleased to say we got rid of the worst financial issue he was facing by settling on his debt of over $400,000. His wife was relatively pleased as well!!

PROPOSED ASSESSMENT OF $29,000 REVERSED!!

Our client came to us shortly after they received a notice CP2000 (A proposed assessment or increase in tax) of over $29,000 due to what the IRS thought was a mistake on the tax return. We took a look at the tax return and the client actually reported everything that was listed on the IRS CP2000 notice.  We were able to answer the IRS letter and respond timely with the information necessary to determine the correct tax.  After it was all said and done, the ended up with a balance of just under $1,000.00. They were pleased with the results, and we were able to successfully resolve the case in a short amount of time.