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Case Study A – A taxpayer attempts to represent himself in a Head of Household Audit with the IRS. The IRS disallows his children as deductions as well as revoking his head of household election filing status. The time for petition into court had passed and the taxpayer was in belief nothing more could be done. The taxpayer becomes a client of our firm and within four months the closed audit was overturned. Instead of the client owing $2091., they received a refund of $2055. That’s a total change of $4146!
Tax Resolutions and Tax Cases
The following are real examples of clients represented by our office. All identifying information about the client and the IRS agent has been removed for purposes of protection and anonymity.
Case Study B – A client is audited for claiming an alimony adjustment on his 1040. Part of the money he paid to his ex-wife was considered alimony and some was considered “family support.” Our firm picked up the client during the appeals process and convinced the appeals agent to agree to all of our appeals request except for the amount of the alimony deduction. The client retained a tax attorney and the tax court held up our appealed stance. End result, FAMILY SUPPORT is deductible as alimony (depending on certain factors.)
Case Study C – A client was structured into a very complicated and very erroneous trust arrangement with their family and their family business. After the initial audit the client owed $7,243,870.00 in a 90-Day Statutory Deficiency Notice. After a long and drawn out appeals process, the IRS proposed a new settlement amount of $1,428,836. Ultimately, during another round of negotiations, a final settlement agreement was reached for $106,786. The taxpayer saved $7,137,084.00! (Due to the nature and sensitivity of the case as well as the other firms and professionals that worked on this case, not all of the case file notes have been included for review.)
Case Study D - A client was audited for 2006 (NOT prepared by us) and 2007 (prepared by us.) The IRS did not allow time for the client to pull together records and receipts and sent out examination changes with tax due of $18,425.39 for 2006 and $39,492.34 for 2007. A total IRS proposed audit change of $57,917.73! We were able to get the case reassigned and worked with the taxpayer and the IRS to get new results. At the end the client owed $4,596.82 (return not prepared by us) and ended up with a refund of $362.00 for 2007! Total savings to taxpayer… $53,682.91!!! Click Here
Case Study E – A new client came to us after having written a check to the IRS for $84,145.49 for tax years 1997-2003. The client had not filed the returns and then used a CPA firm to prepare and file their past due taxes. Our office did a thorough review of the returns and noticed substantial errors made by the CPA firm. We proceeded to amend tax years 1997-2003 and were able to recover in REFUNDS and CREDITS a total amount ot $54,728.38!!! Click Here
Case Study F – A new client was referred to our office and drove over 3 hours just to see if we could help them. They had been under a repetitive audit for 7 tax years that had spanned literally 5 years of their life. The auditor kept disallowing all deductions and exemptions and put the client in a very dire situation. Although it took us nearly two-years to clean this case up, the client was refunded and abated $24,422.93!!! And just as important, the continuous audits stopped. Click Here
Case Study G – A client was audited for claiming a large loss on his active Sch C business. The IRS initial audit response was a balance due with penalty and interest of $4,083.47. The case was then appealed on the lack of IRS agent response to the taxpayer, in which greater documentation and explanation of the questioned items was to be provided. Within two months of the appeal request the IRS reversed all additional tax, interest, and penalties charges to the taxpayer account. Net result, ZERO CHANGE!
Case Study H – A new client was referred to our office by his son. He has lived and worked in China for 10-years. When he went to pull his credit, he noticed a large IRS tax lien. The client owed the IRS a combined $11,484,926 for 2000 and 2001 tax years. After some amended returns and about a year later, the net result, the client owes $0 and gets a refund of $23.00! That is a combined abatement and refund of $11,484,949!!!!
Case Study I – A long time client went through a very rough divorce and had to refinance all of the equity out of her homes to pay her legal bills. When the economy and real estate market crashed she lost all of her properties and was left with a huge capital gain tax bill that she couldn’t afford. However, we were able to negotiate her tax debt down to 5.5 cents on the dollar! That’s a total tax savings of $174,753.53!!
Case Study J - A client came in as a delinquent filer once they received notice from the local IRS office that their case-file had been assigned to a Revenue Officer. After a frustrating 8-month run with the Officer in an attempt to get an installment agreement in place the IRS Revenue Officer became very difficult and actually filed an additional lien. After a successful appeal not only was the new lien lifted, a pre-existing lien was lifted as well as a very manageable monthly installment agreement. The client was extremely pleased.
Case Study K – What do you do when you have an overwhelmingly large tax bill that is stressing you out and preventing you from working for fear of garnishments or liens? This particular client was a delinquent filer with over 7-years of back taxes to file. The IRS had already assessed a balance due in the neighborhood of $350,000 for 3 years worth of taxes. Once those returns were actually filed they owed approximately $200,000. A few years later the client was still filing returns to be compliant, but unable to pay the balance or even make payments. The IRS and the Franchise Tax Board because more threatening and liens and levies were forcing the client into a panic. Resolution: Uncollectable status for the IRS and the State. The client now has peace of mind knowing they can work and provide for their family without the fear of levies, liens or perhaps something worse. Click Here
Case Study L- Not every audit ends in tragedy. After a grueling 2 and a half-year audit process we finally resolved the case with the IRS. The result: ZERO CHANGE to the client’s tax return as we had originally filed it. Click Here
Case Study M – Offer-and-Comprise tax resolution success! A client came to our office with 12 years of past-due non-filed tax returns. After working with the client to reconstruct records and put over a decade worth of tax returns together we were finally able to file all of the outstanding returns. Once the returns were processed and accumulated penalty and interest were calculated, the client was on the hook for nearly $38,000 to the IRS. Our next step was to prepare an IRS offer-in-compromise in which we were able to get an amazing settlement for the client, only $1260.00! That’s 3.3 cents on the dollar. Needless to say, the client is very happy and can now move forward with putting the financial pieces of his life back together. Click Here
Case Study N – A new client came to our firm seeking assistance in setting up their NPO (non-profit organization.) They had already downloaded a lot of the forms and had prematurely even filed for items that they needed to wait until other items were in place first. The good news is, after cleaning up all the mess and submitting the application with the IRS, they received their NPO recognition acceptance in only two months. Click Here
Case Study O – Late Filing Penalty Abatement for a California S-Corporation $195 Removed. Click Here
Case Study P – Late Filing Penalty Abatement for a California S-Corporation $1365 .
Case Study Q – Late Filing Penalty Abatement for a California S-Corporation $585.
Case Study R - IRS Penalty Abatement for a filing of a Non-Profit 501c3 return $1340. Click Here