Back Tax Balance Lowered by 80%
When Mr. O contacted our office, he was at a loss as to how resolve a tax situation that had been developing over a period of years. Several years prior to this time, he had undergone a divorce which had thrown a monkey wrench into his previously stable financial situation. Since then, although he had continued to earn a good salary of over 200K, high alimony and child support payments had been absorbing a large chunk of his earnings. Fearing that he would be unable to pay the taxes owed, he had avoided the situation by failing to file income tax returns for several years. At the time he contacted our office, he was worried about the size of the back tax balance he might have accumulated over that period of time and unsure of how he would come up with the resources to pay it.
Immediately after Mr. O’s initial contact with our office, our tax professionals began collecting the information necessary to prepare and submit his back tax returns. Once this was done we had an accurate estimate of his back tax balance which came in at over 150K! Undeterred by this large dollar amount, our tax specialists moved forward with Mr. O’s case by completing a thorough analysis of his financial situation, the results of which showed that he would be a good candidate for an Offer in Compromise. Although our tax resolution team knew that this particular tax settlement agreement would be a difficult one to negotiate because of the client’s income level, we moved forward with submitting the necessary paperwork with the expectation of a positive outcome.
Although Mr. O is a successful man with a relatively high salary, his expenses are also high. A large part of his income is offset by child support and alimony payments which are both allowable expenses in determining a person’s reasonable collection potential. Our experienced professionals have successfully represented many clients before the IRS and are well aware of how such factors figure into the eligibility criteria for the various tax settlement options. In the case of Mr. O, we were able to determine that his overall financial situation placed him within the guidelines for receiving an Offer in Compromise. Once all was said and done, the IRS accepted his offer for 20% of the original back tax balance owed. This was a major victory for both our team and Mr. O!
If you have tax questions or a tax debt you are unable to pay, our tax settlement professionals are happy to discuss your tax resolution options free of charge. For more information about our services, visit us today at www.professionaltaxresolution.com or call us at 877.889.6527. With over 16 years in the business of resolving tax debt, we have a thorough understanding of tax law together with the experience to know which settlement option will be the best fit for your specific set of circumstances.