Tax Liability of 49k Reduced to Settlement Amount of 1K Using IRS Offer in Compromise
Ms. Y, a single woman who works as a medical assistant, was already having trouble meeting her monthly expenses when unforeseen circumstances increased her financial burden. She was unexpectedly given temporary custody of her granddaughter when her daughter was unable to care for the child herself. This placed Ms. Y in the position of being a low income middle aged woman with the added financial responsibility of caring for someone else. In order to make ends meet, she reduced her tax withholdings. Although this decision helped in the short run, her underpayment of withholding taxes resulted in in the accumulation of a $49,000 tax debt.
When Ms. Y contacted Professional Tax Resolution she had not she had not filed tax returns for five years because she feared the consequences of not being able to pay the tax amounts owed. Prior to calling our firm, she had shopped around for a tax resolution company but always felt pressured by the sales people who took her calls. She was asked to pay thousands of dollars up front like and was treated like she was closing a business deal. When Ms. Y called us, she was promptly placed in contact with a certified tax professional. This staff member, who comforted her and assessed her situation, was the same professional who assisted her through the entire tax resolution process.
As usual, the Professional Tax Resolution team went to work immediately. Our first step was to file the past five years of back of tax returns which showed that Ms. Y owed a back balance of $49,000. We then completed a thorough analysis of her financial situation and determined that she was an ideal candidate for an Offer in Compromise. After filing the necessary paperwork requesting this tax settlement option and negotiating with the IRS on her behalf, the Offer in Compromise petition was accepted. The end result was that Ms. Y was able to settle her $49,000 tax debt by paying only $1,000 dollars!
Our team is dedicated to fighting for our clients and doing whatever it takes to get them the best tax settlement agreement possible. Although the Offer in Compromise tax settlement option discussed above has strict qualifying criteria, our staff will work to ensure that any client who qualifies is able to take advantage of the benefits it offers. Professional Tax Resolution clients have peace of mind because our staff is protecting them and working for them every step of the way. We follow each tax settlement case through from the initial consultation to the final resolution of the tax debt.