There have been many exciting stories concerning our clients tax issues this year. The most recent settlement took place for one of our favorite clients. He came to us with a large IRS tax issue in January of 2016 and he didn’t know how to fix the problem. He had been dealing with this tax issue since 2008. When he hired us, he had been dealing with the IRS (unsuccessfully) for 8 years. We were hoping to secure an IRS Offer in Compromise on his behalf.
FACTS:
The taxpayer had to file a few returns, and we determined the taxpayer is a wage earner. He doesn’t own a home, and is living on a fixed income. He also doesn’t have any retirement accounts, or liquid assets in order to pay the IRS bill, which in January of 2016, was close to $60,000.
The taxpayer needed to file a few returns first in order to become current and compliant with the IRS. Once these returns were filed, we were able to move forward with the filing of an iRS Offer in Compromise.
TIMELINES:
From the time we filed the Offer in Compromise (which was May of 2016), to the time the offer was worked (July of 2017), it has been about 14 months. Which is a little longer than we like. We usually quote 12 months to work an offer from start to finish (meaning from the time we file the OIC to the time it is paid in full and the liens are released). However, the taxpayer was patient, we kept him informed of the process and timelines as best we could throughout the process.
RESULTS:
We filed the OIC for $500 at the time. The IRS didn’t agree with certain expenses and came back with a figure of $7,500 (still not terrible), but we were able to negotiate the final OIC for $5,200. The taxpayer owed close to $60,000!!! We were able to save him almost $55,000!! He will begin paying his OIC within the next 30 to 60 days.
If you or someone you know, owes the IRS, cannot pay the debt, and fits some of the criteria explained above, please call us at 720-398-6088! We would be happy to help with the filing of an IRS Offer in Compromise.