Successful Outcome for a Three Year Tax Settlement Case

Successful Outcome for a Three Year Tax Settlement Case

Mr. H, a self-employed, divorced father, came to Professional Tax Resolution for help with a number of different tax issues. Due to poor tax planning and ignoring his tax obligations, he had accumulated a tax debt of almost $100,000 over a period of five years. On top of this, he had recently received an IRS Notice of Intent to Audit. Worried about how his sloppy bookkeeping system would fare in an audit and unsure of how to resolve his back tax issues, he reached out to Professional Tax Resolution for help with both problems.

Our firm quickly contacted the IRS and State of California Franchise Tax Board to protect Mr. H’s accounts while we gathered the necessary documents to properly prepare for his audit. Although his books were not the most tidy, our firm worked with him to organize his records. We completed his audit defense file and stayed by his side during the entire audit process. Once the audit was finished, our team filed the adjusted State of California Income Tax Returns and eagerly began collecting Mr. H’s financial information in order select the best possible solution for resolving his tax debt. After careful review of his financials, our professionals determined that he met the qualification criteria for an IRS Offer in Compromise. Although we knew our initial offer might be a difficult sell, we felt like we would ultimately be able to negotiate a lower balance. Professional Tax Resolution experts were not deterred when the original offer was rejected. We persevered by filing an appeal and eventually succeeded in negotiating an affordable Offer in Compromise settlement in the amount of $17,640. Although this offer may seem a bit high to some, it was a great accomplishment for both our team and our client given Mr. H’s assets and current financial status.

Mr. H’s case highlights some very important elements of the tax settlement process at Professional Tax Resolution. First, it shows that our professionals will follow each client’s tax settlement case through to a complete resolution. In spite of the fact that it took three years to completely resolve Mr. H’s back tax issues, our firm stuck with the process until they had achieved a successful outcome. Secondly, this case shows that one of the primary aims of our professionals is to protect the client’s assets. Although Mr. H had liens on his accounts when he first sought our help, our professionals were able to protect his accounts from being levied during the entire period of time we were negotiating with the IRS on his behalf. Finally, the case illustrates the ability of Professional Tax Resolution to provide whatever services are necessary to achieve the best overall tax resolution outcome for each of our clients. In the case of Mr. H, we provided audit and bookkeeping services with the help of our parent company in addition to tax resolution services.