The taxpayer had failed to have enough withholding taken from his paychecks for a span of more than ten years, dating back to the early 2000’s. He sought the assistance of Dickmann Tax Group after he had retired, was living on a fixed income, and could not afford the aggressive bank levies and Social Security garnishments that he was being accosted with from both the IRS and the State Department of Revenue.
Throughout the client’s representation, Dickmann Tax Group released several garnishments against his Social Security, and prevented additional aggressive actions. Based on his financial hardship, the associate team filed an Offer in Compromise to secure a tax debt settlement and full relief from the IRS’s flippant actions. Initially the IRS tried to deny the hardship, requesting a significant increase (over $1,700) against the minimal Offer settlement proposal ($100). Dickmann Tax Group argued that the determination was incorrect and did not adhere to the allowances set by the IRS; they counter-offered an increase of only $29 over the initial proposal. Based on the argument and information provided, the IRS accepted the counter proposal, and the taxpayer settled their debt for a fraction of what was due, saving well over $50,000.
In addition, Dickmann Tax Group assisted the taxpayer with their state tax debt. The taxpayer hadn’t filed a state tax return for several years, and the state had used the Federal return information to assess him with tax balances, penalties and interest. Dickmann Tax Group was paramount in getting the actual returns on file, which led to a significant reduction of the tax balance, and reallocation of credits from payments and refunds held by the state. Dickmann Tax Group was then able to negotiate further settlement of the balance by abating the penalties from the remaining debt, and setting up a minimal Installment Agreement to pay the less the $1,000 remaining on the account.
Overall, Dickmann Tax Group was able to settle over a decades worth of balances with the IRS and State Department of Revenue, and ensure the taxpayer was able to maintain compliance moving into the future.
Obviously all tax situations are different, however if you’d like to learn more then please click here to self-schedule an appointment to discuss your own tax debt issues.