For several years the taxpayer’s income was insufficient to cover his necessary living expenses. In order to make ends meet, he adjusted his withholding to claim exempt, resulting in $0 in withholding at the end of the year, and, without credit paid in, a high, unpayable tax balance. The debt continued to compound, weighing heavily on the client, leading him to reach out to Dickmann Tax Group to help assuage him of the stresses from the burden of his tax debt, and negotiate a settlement that would meet his financial ability, rather than be forced to meet the demands of what the IRS wanted to collect.
Dickmann Tax Group immediately put holds in place to prevent enforcement action such as a wage garnishment or levy from the IRS. We then prepared a statement of his financial condition to demonstrate his hardship and negotiate a settlement against tax debts owed. However, the IRS assessed the client with additional balances for unreported gambling winnings, and the settlement was pushed back in order to argue the additional assessments. Once the final tax balance was determined (roughly $115,000), we presented a settlement of ~$10,000 against the clients debts. After some back-and-forth with the IRS agent, the debt was settled for less than 10% of the total amount owed!
Obviously all tax situations are different, however if you would like to learn more or schedule time to discuss your own tax issues, please click here and we would be happy to assist you.