Client Success Stories

A self-employed client had gone several years without filing. The longer it went on, the harder it became to face — and the IRS had begun filing Substitute for Return assessments, which may not give a taxpayer credit for deductions or credits they would otherwise claim. We reviewed the records, prepared every outstanding return, and pursued penalty abatement on the years where reasonable cause applied. Filing the real returns reduced what the IRS had assessed, the penalties came down, and the remaining balance went onto an affordable installment agreement. The part clients rarely expect: filing late returns usually improves your position. The assessment the IRS made on your behalf is almost always higher than what you actually owe.

A working professional found the IRS garnishing a large share of each paycheck, making basic living expenses impossible to cover. A wage levy is continuous — it stays attached to every payment until it is released or the balance is satisfied. We filed the Power of Attorney, contacted the IRS unit handling the case, and challenged the garnishment while documenting the client’s actual living expenses. The IRS released the levy, the full paycheck was restored, and we put a payment plan in place for the underlying balance.

A self-employed graphic designer, 38, had not made estimated tax payments for three years. When she filed, she owed $38,000 in tax plus $9,000 in penalties and interest. She let the CP14, CP501 and CP503 go unanswered because she simply could not pay. The CP504 — notice of intent to levy her state refund — was the one that made her call. We pulled her transcripts and ran her Reasonable Collection Potential. It showed she could not pay the $47,000 in full before the collection statute expired, which made her a candidate for a Partial Payment Installment Agreement. The IRS accepted $550 a month. Her state refund was never levied, the case never reached an LT11, and roughly $8,400 is scheduled to be forgiven when the statute runs out. Our fee was $3,500.

A client came to us owing $324,388 after years of unfiled returns and compounding penalties. On paper it looked hopeless. Once the returns were current, we completed the financial analysis that an Offer in Compromise turns on. The IRS accepted $100. This outcome is uncommon, and it is entirely a function of Reasonable Collection Potential — the IRS settles based on what it calculates it could actually collect, not on the balance. For most clients the number lands somewhere in between. But it is why we never assume a balance is too large to resolve.

An international management consultant based in Dallas travelled constantly to Europe and Asia for work. When the IRS certifies a seriously delinquent balance to the State Department under IRC §7345, it can block passport renewal or revoke the passport outright — which for this client meant his livelihood. Getting the certification reversed requires either resolving the balance or entering a qualifying agreement. We moved on the resolution that would clear the certification and protect his ability to travel.