Offer in Compromise Tax Case Brief

we have been successful in utilizing offers in compromise and other approaches to significantly reduce tax liability. Furthermore, in situations where litigation is necessary, we represent clients before the United States Tax Court with excellent results.

Situation:
A male recording artist in his twenties had issues on 7 tax returns over a 10 year period. He had neglected to file some returns, and others he had filed, but not paid. Ten years ago, he filed a return showing a balance due of $40,000, which he never paid. He came to us owing an additional $34,000 in penalties from that single year; his combined taxes and penalties came to $83,000.

Solution:
Present an offer in compromise to the IRS. With the client’s assets totaling about $5,000 and his living expenses exceeding his income, we were successful in obtaining a reduction in his liability, allowing him to pay what he could afford and start with a clean slate. This is an exceptional case – his specific facts permitted us to achieve such a dramatic result.

Benefit:
Taxes owed reduced from $83,000 to $6,000.

2018-12-21T15:08:40+00:00