Staten Island Senior Married Couple able to resolve $300k for $80k
Mr. and Mrs. D had been in good standing with IRS all their lives and enjoying their senior years. However, things began to take a downward spiral as the result of the taxpayer’s mother’s passing, which led to depression. Other problems which needed to be fixed included: a mishandling of an inherited property without proper legal representation, their eldest daughter becoming a single mother needing their financial assistance and the taxpayer facing a series of health problems.
In a matter of time, the taxpayers found themselves overwhelmed owing nearly $300k in tax debt. Growing worried about how they were going to be able to pay such an amount of money with both being retired, their youngest daughter called on our office for a consultation. After speaking and giving examples of other recent cases of resolution, she was confident we could help her and her family and retained our services requesting an Offer in Compromise.
The Offer in Compromise took months to prepare as their story needed to be explained as well as full disclosure of their assets. Over a period of 2 years (due to Covid), this year their Offer was recently approved for $80k.
Needless to say, their senior years are looking brighter.
From Wall St. to Debt City: How a $100k IRS debt was settled for $30k and a NYS debt for $”400k” was settled for $85k
Our client, Mr. Morris, worked on Wall St. for many years. He was the father of 7 children and through an unpleasant divorce from his wife, he was left owing a rather large balance in child support. While trying to remain current with the child support payments, he fell behind on his taxes which left him with large debts being owed to the IRS andNew York State. Mr. Morris came to see us, and we worked with him for many years trying to resolve these issues before finally opting for an Offer in Compromise. One issue that worked in his favor was the 10-year statute of limitations. The IRS has 10 years to collect your taxes. After 10 years these taxes are considered closed or non-collectable.
Through negotiations, his $100k debt was compromised and settled with the IRS for $30k. Although he was elated to achieve this financial goal, Mr. Morris had a bigger issue, with a larger debt being owed to the New Yorks State Department of Taxation and Finance.
He had previously filed an offer that had been accepted but was unable to complete. After a second Offer was filed, and after much back and forth on the $400k balance, the case was resolved for a payment of $85k which represented the base tax.
400k Tax Debt Settled for 35K
A recent Offer in Compromise case involved our clientG Rivera.
Mr. Rivera has been a client of the office for several years. Mr. Rivera recently retired and was looking forward to his golden years. However, a Federal Tax debt of over 400k and a tax lien in the same amount was hanging over his head, casting a dark shadow over those years.
Many of the years that were owed were old. For instance, tax year“2011”was almost 10 years old at the time of filing of the offer and subject to the 10 Year Status of Limitations. In other words, the taxes for that year should have been released already.
Mr. Rivera had a tax liability beginning at approximately $400,000 and that was reduced to $35,000 through an Offer in Compromise. Based on that reduction with the IRS and other legal actions taken on his behalf, Mr. Rivera is now tax free.
The process took almost 2 years to complete and with many bumps along the way, including when the IRS was going to reject the Offer due to a glitch where they had believed that certain follow-up documents were not filed. Theyhad been, and upon proof of the filing, the case was again allowed to continue. Ultimately, there was a decision resulting in the final review of the Offer in Compromise and an acceptance.
Significant Tax Case Victories and Tax Controversy Case Results
Case Result: Defended a small business owner in the New York City Glass Business who was accused of claiming over $100,000 of personal expenses on his corporate return. The client had borrowed corporate funds to help rebuild a home destroyed in the former Yugoslavia territory of Bosnia. The IRS claimed this was not a true loan and wanted it declared as a constructive dividend. After this office provided proof of the loan documents and relevant research, the IRS agreed to drop the issue. What could have been over $100,000 in IRS debt ended up costing the taxpayer approximately $7000.00