When our client came to us, they were overwhelmed by IRS and State of New York state tax debt notices threatening bank levies and wage garnishments. Unsure why they owed nearly $80,000 in tax debt ($40,000 to each the IRS and the state), they turned to Dickmann Tax Group for answers and a solution.
Here’s how we resolved their state tax debt case:
1. Verified Tax Balances: We immediately reviewed the IRS and state claims, confirming the legitimacy of the balances and identifying the root causes of the debt.
2. Secured IRS Relief:
• We demonstrated the client’s financial hardship and successfully negotiated a Currently Not Collectible (CNC) status with the IRS.
• This halted all collection actions, prevented garnishments, and ensured no monthly payments were required while the debt remained uncollectable.
3. Cleared State of New York Tax Debt:
• After verifying the client had not been a New York resident for several years, we eliminated the non-compliance issues tied to residency.
• The state initially rejected our Offer in Compromise (OIC) proposal, but we stood firm, resubmitting with additional evidence and a counter-proposal.
• Through persistence and expert negotiation, we secured acceptance of the Offer, resolving the state debt for a fraction of the amount owed.
4. Achieved Significant Savings:
• With the IRS debt nearing collection statute expiration and the state accepting our OIC, we resolved the client’s tax issues for less than 2% of the original debt, saving them over $75,000.
Why Choose Dickmann Tax Group?
Our team specializes in navigating complex tax issues, including IRS and state tax debt, wage garnishments, and bank levies. We don’t just settle debts; we fight for the best possible outcome for every client, even in the most challenging situations like New York’s tough OIC program.
If you’re facing overwhelming tax debt or aggressive collection actions, contact us today to learn how we can help you achieve financial relief and peace of mind.