Resolving a Multi-Year Tax Debt

CASE STUDY DETAILS

Resolving a Multi-Year Tax Debt

The Problem:
A small business owner came to my office after months of frustration with a tax attorney and ongoing battles with the IRS. Her tax debt had spiraled out of control due to a now-divorced spouse who, as her business partner, had accumulated debts behind her back. She was devastated and saw me as her last hope.

Small Business Owner

Personal & Business Tax Debt/Liability

Boise, ID

The Liabilities Included:

$175,000 in personal IRS debt
$105,000 in business tax liabilities (primarily tied to an S-Corp)
Trust fund penalties assessed personally due to unpaid payroll taxes

Compounding her situation, she had $100,000 in equity in her home but was unable to access it to address the debt. The looming trust fund penalties added another layer of complexity.

Our Solution:

After assessing her situation, we developed a two-pronged strategy:

Separate Offers in Compromise:

1. - One offer targeted her personal tax debt, including the trust fund penalties assessed to her individually.
  - A second offer addressed her business tax liabilities under the S-Corp.

Navigating Appeals:

1. - When initial offers were denied, we escalated both cases to the IRS Appeals Office. By presenting detailed documentation and a strong argument, we successfully negotiated settlements for both debts.

The Outcome:

Final Settlement
We settled the combined $280,000 tax liability for just under $6,500.

The client achieved a clean slate, free from the overwhelming tax burden that had been haunting her. She fully complied with the terms of the Offer in Compromise and has since rebuilt her financial footing.

Even though she has relocated to another state, she continues to be a loyal client, trusting me with her ongoing tax needs. Moments like these, when I can tell a client their tax woes are behind them and they can truly start fresh, are the most rewarding part of my work.

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Resolving a Multi-Year Tax Debt

CASE STUDY DETAILS