Our client came to us this summer with a hefty tax liability, (over $125,000) along with IRS penalty and interest charges, stemming from a broken relationship. She mentioned her now estranged husband managed to cash in most of their joint retirement accounts, not pay the tax, and then proceed to file separately from her. Thus hiding the fact the retirement funds were cashed in, dispersed, and then reported without her knowledge. She felt taken advantage of, lost, alone, and unsure as to where to turn. She had tried innocent spouse, filing of appeals, filing of an appeal on the tax lien, all to no avail or success. She is interested in a penalty reduction as well as working out a payment plan, settlement, or alternate strategy of some sort on the remainder of the bill.
The taxpayer had just gone through a divorce, whereby mental anguish, mental and emotional abuse, as well as financial abuse was present. The taxpayer did have documentation showing such abuses, by way of psychologist letters, reports, prove of hospitalizations, mental treatment, as well as police reports showing restraining orders present. We all have a certain responsibility to make sure our taxes are paid timely, and in full. However, unfortunately for some, there are circumstances that may exist beyond the taxpayer’s control.
Within 5 days of hiring us (including the weekend), we were successful with a first time abatement on the 2014 tax year totaling $35,000. As practitioners we have access to a penalty hotline whereby we can call the IRS and request an abatement by phone. This allows us to present documentation, facts, and state our claim by phone, as well as fax in documentation proving our claim.
The taxpayer was more than pleased with our results. We are looking forward to resolving the remainder of her bill through alternate means.
If you or someone you know is facing a penalty charge by the IRS please call us immediately at 720-398-6088. We will be pleased to help with your penalty reduction request!