Tax Debt Of $23,656 Reduced By Correctly Filing Tax Return And Setting Up Installment Agreement

SITUATION:

A couple reached out to us with an IRS balance of $23,656 accumulated over several years. They had not filed several tax returns and were unsure how to address the mounting debt. The IRS was threatening enforcement actions, and they needed assistance to become compliant and manage their debt effectively.

INVESTIGATION PHASE:

To initiate the investigation, we assigned the case to a specialized tax team and secured a signed power of attorney to allow us to communicate directly with the IRS on their behalf. Our first action was to request a stay of enforcement to temporarily halt any immediate collection actions that could further impact their financial situation.

Next, we obtained the clients’ master file from the IRS. This file provided a comprehensive overview of their tax liabilities, including a detailed breakdown of the total amount owed, which was $23,656 accumulated over several tax years. We also assessed the status of their tax accounts to understand the extent of any existing enforcement actions and pending deadlines.

Upon thorough examination of the IRS records, we identified that the clients had failed to file several tax returns for the years contributing to the debt. This lack of compliance was a significant factor in the accumulation of their tax liability. To address this, our tax team gathered all necessary documentation and financial records from the clients, including income statements, expense reports, and any relevant financial documentation.

We then focused on filing accurate and complete tax returns for the years in question. Our tax professionals meticulously reviewed all financial data to ensure that the returns were filed correctly, taking advantage of all available exemptions, credits, and deductions. This careful preparation aimed to reduce the overall tax liability and correct any inaccuracies that had contributed to the debt.

In addition to resolving the filing issues, we explored and implemented an installment agreement as a means to manage the reduced tax liability. Our team calculated an affordable monthly payment plan based on the clients’ financial situation and submitted a proposal to the IRS. The installment agreement was designed to spread the repayment of the reduced balance over a period that was feasible for the clients.

Throughout this phase, we maintained ongoing communication with the clients, providing updates and ensuring they understood each step of the process. Our objective was to bring them into full compliance with the IRS while mitigating their debt through accurate tax filings and a manageable payment arrangement.

COMPLIANCE PHASE:

The clients agreed to proceed with the compliance phase. We prepared the necessary forms and schedules for the outstanding tax years. Fortunately, they had maintained records of all their business expenses, which we used to claim all allowable deductions. After filing the required tax returns, we ensured that their total tax balance was accurately calculated, reflecting all applicable credits and deductions.

RESOLUTION PHASE:

With the accurate balance established, we moved forward with setting up a resolution. Given their financial situation, an Installment Agreement was determined to be the best option. We negotiated with the IRS to set up a Streamlined Installment Agreement, resulting in manageable monthly payments of $445. This agreement stopped any further collection actions, providing the clients with a clear path to settle their debt.

Total Amount Owed: $23,656

Resolution: File Original Tax Returns & Streamlined Installment Agreement

Monthly Payment: $445

Phases Worked: Investigation, Compliance, & Resolution

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DISCLAIMER:

This example is an actual example of clients who enrolled in the tax program. Every case is unique and this is not an extension that you will receive the same resolution as they will. Your situation is unique, as are all tax cases. The team has extensive experience, has former IRS employees, special officers, enrolled agents, tax attorneys, and CPAs. Our tax team will work diligently with a flat fee to solve the tax issue you have for the best possible resolution for you. That means doing all possible to ensure you pay the lowest amount of taxes legally required based on your situation, allowable deductions, finances, and other factors.