March 2014
Just one year ago, in March 2013, Professional Tax Resolution received a call from an individual who had not filed tax returns for the previous five years. Mr. D had continued to put off filing the returns because he knew he would owe a significant back tax balance once they were submitted. Like many other taxpayers, he works 40 hours a week, makes an average wage, rents a house, pays a monthly car note and has many other financial responsibilities, some of which had begun slip out of control. He had avoided filing his tax returns because the mere thought of adding a tax liability on top of his other financial obligations frightened him. This was the scenario that led up to Mr. D’s initial contact with Professional Tax Resolution.
Following a brief telephone consultation, Mr. D came to our office to meet with one of our tax professionals. After just a few questions regarding his current financial situation, the Enrolled Agent who interviewed him determined that he would be an ideal candidate for an Offer in Compromise. Our professionals immediately obtained a Power of Attorney, collected wage and income information, began investigating the client’s tax history and completed the filing of all unfiled tax returns. Once all back tax returns had been filed, our team of professionals began gathering the financial information and supporting documentation necessary to file an official Offer in Compromise application. We simultaneously, contacted the State of California Franchise Tax Board to initiate removal of a wage garnishment that had been imposed to collect past due state taxes.
The outcome of Mr. D’s tax settlement case was positive across the board. By accepting the Offer in Compromise proposal, The IRS agreed to settle Mr. D’s outstanding tax debt for a mere 6% of the $80,000 he owed. This agreement was granted based on submitted documentation substantiating that his financial situation made it unlikely that he would be able to pay the entire amount of his back tax balance. In addition, the State of California Franchise Tax Board agreed to remove the Mr. D’s wage garnishment and replace it with a slow pay installment agreement.
Although the outcome of Mr. D’s tax settlement is not unusual, a successful resolution is not automatic. Both the Offer and Compromise and the wage garnishment removal have specific sets of qualifying criteria which must be properly documented. In addition, the IRS and the State Tax Agencies have very specific filing procedures which must be strictly adhered to in order for a tax settlement petition to be accepted. Both of these requirements were met in the case of Mr. D. The CPAs and Enrolled Agents at Professional Tax Resolution determined that his “doubt as to collectability” made him and ideal candidate for an Offer in Compromise. They similarly determined that he met the State requirements for a wage garnishment removal based on the fact the garnishment was making it difficult for him to cover his ordinary living expenses. Following these determinations, they submitted the applications and supporting documentation for each tax settlement option according to the specific procedures and time constraints set by the respective tax collecting agency. The result was overwhelming success!
Visit us today at www.profesionaltaxresolution.com to learn more about our customized tax relief assistance. With over 16 years of experience in the business of resolving tax debt, the CPAs and Enrolled Agents at Professional Tax Resolution can help you select the tax relief option will work best for your specific financial situation. Contact us today at (949) 596-4143 or info@protaxres.com to receive a free, no obligation consultation.
