Our client’s financial troubles began when his employer reclassified him from a W-2 employee to an independent contractor. Like many in this situation, he didn’t fully understand what it meant to be self-employed or the requirement to make quarterly estimated tax payments to the IRS.
Here’s how things spiraled out of control:
• Missed Tax Payments: He filed his taxes late on extension in October, only to discover he owed a significant amount for the prior year—and he hadn’t made any estimated payments for the current year either.
• Compounding Debt: Without enough guidance, he found himself owing year after year. By the time he sought help, his IRS debt had ballooned to over $100,000.
• Stress and Confusion: He eventually returned to W-2 employment to stop accruing new tax debt, but his past IRS balance remained unresolved, leaving him vulnerable to IRS collections and enforcement actions.
When he turned to us, he was overwhelmed and didn’t know where to start. Here’s what we did:
1. Comprehensive Financial Analysis: We reviewed his financial situation in detail to determine the best resolution strategy.
2. Relief Through Currently Not Collectible Status: Using our expertise, we demonstrated to the IRS that he had no ability to pay the debt at that time. This stopped collection actions, such as levies or garnishments, and gave him much-needed breathing room.
Why Work With Us?
Tax issues like these require more than filing paperwork—you need a trusted partner to navigate the IRS’s complex system. Whether you’re struggling with 1099 tax debt, missed payments, or overwhelming IRS notices, we have the knowledge and experience to protect your assets and secure the relief you need.
Don’t let tax debt control your life. Contact us today for a consultation and let us help you achieve financial freedom!