Case Studies

A wide range of client cases were selected encompassing offer in compromises (OIC), installment agreements, wage levies, bank levies, substitute for return (SFR) filed by the IRS, and unfiled tax returns to best dementrate the variety of resolution options TaxRise has secured.

Case 1

$26,860 Wage Levy Released and Wage Levy Removed Entirely

Taxpayer: Reegan B. – Officer Manager

Tax Problem:

Reegan had not filed his tax return for numerous years. He owed over $78,500 in back taxes, penalties and interest.
The IRS Revenue Officer assigned to Reegan’s case filed a Substitute For Return (SFR) which led to a $26,860 wage garnishment against Reegan’s quarterly insurance sales commissions payout and an additional $2,000 Bank Levy.

TaxRise’s Solution Process:

01.
One of TaxRise’s Tax Preparation Professionals helped Reegan itemize his expenses and maximize his deduction.
02.
The assigned TaxRise Case Manager and one of TaxRise’s Tax Attorneys worked closely to convince the Revenue Officer to cancel the levy that was placed on Reegan’s wages.
03.
TaxRise negotiated with the Revenue Officer to release the total amount levied from Reegan’s wages ($23,335) and accepted a reasonable payment plan for Reegan.

End Result:

TaxRise negotiated a release of the total a mount levied ($23,335), removed the wage levy entirely, and the IRS accepted a monthly payment plan that Reegan could reasonably afford.

Case 2

Realtor’s Monthly $7,000 Installment Reduced to $400

Taxpayer: Dylan G. – Realtor

Tax Problem:

During the recent recession, Dylan fell behind on his taxes by several years. He received a letter from a Revenue Officer at the IRS indicating he would be required to make payments towards his $206,000 tax liability.
In good faith, Dylan contacted the Revenue Officer and completed financial forms to determine what amount he could afford. He was notified that he would be expected to pay $7,000 per month and that he faced a possible bank levy if he failed to comply.

TaxRise’s Solution Process:

01.
After a detailed analysis of Dylan’s case, the team at TaxRise contacted the Revenue Officer in charge of his case.
02.
TaxRise structured an Installment Agreement which brought down his monthly obligation from $7,000 to $400 for the first three years of the payment plan.
03.
Moreover, Dylan’s total tax liability was reduced by $65,000.

End Result:

TaxRise was able to reduce Dylan’s monthly installment obligation from $7,000 to $400, as well as reducing his total tax liability by $65,000.

Case 3

Web Designer Settles $18,160 Tax Liability for $100

Taxpayer: Alex A. – Web Designer

Tax Problem:

Alex came to TaxRise as a self employed, freelance web designer. She had been on an Installment Agreement for a tax liability balance, but fell into financial hardship and defaulted. That resulted in the IRS rescinding the agreement and demanding the entire balance due.
If she did not pay the entire balance they threatened to file Federal Tax Liens against her. She owed just over $18,160.

TaxRise’s Solution Process:

01.
TaxRise ’s team was successful in immediately getting the IRS to approve a Hold on their collection activity.
02.
TaxRise was able to prove his financial hardship and place Alex in a Currently Non-Collectible status.
03.
TaxRise was able to negotiate with the IRS to accept an Offer in Compromise on Alex’s behalf which settled the liability for a total of $100.

End Result:

TaxRise was able to settle Alex’s $18,160 tax liability for $100.

Case 4

$25,120 Tax Liability Settled for $100 — Inheritance Saved

Taxpayer: Albert M. – Unemployed

Tax Problem:

Albert’s mother passed away a couple of years ago and left him an inheritance. Albert had to pay taxes on the money because his mother didn’t take the appropriate steps that would have shielded the inheritance from IRS taxes. His tax liability was $25,120 plus an unfiled tax return.
Albert was initially able to set himself up on a monthly Installment Agreement with the IRS, but since he’s currently unemployed, it became unaffordable for him and his wife.

TaxRise’s Solution Process:

01.
TaxRise gathered all of his pertinent financial information and completed a thorough investigation of his situation.
02.
During the investigation, TaxRise discovered that the he was eligible for a Currently Non-Collectible status.
03.
Further negotiations allowed TaxRise to complete an Offer in Compromise for $100, saving a total of $25,020.

End Result:

TaxRise was able to settle Albert’s $25,120 tax liability for $100 with an Offer in Compromise.

Case 5

Wage Levy Release & Installment Agreement

Taxpayer: Sean A. – Shipping and Receiving Staff

Tax Problem:

Sean had missing tax returns for the years 2008 – 2013, along with a tax balance of $11,000. He also had a Substitute For Return (SFR) filed for the tax year 2005.
Finally, while TaxRise was dealing with Sean’s missing tax returns and unpaid tax balance, the IRS issued a Wage Levy notice to his employer which was to become effective the following week.

TaxRise’s Solution Process:

01.
Tackling the initial problem of Sean’s missing tax returns, TaxRise’s team of tax preparers completed his unfiled returns.
02.
Once the Wage Levy issue arose, working as quickly as possible, TaxRise’s team of tax professionals and tax attorneys gathered all the necessary financial documents to have the wage levy released.
03.
All the financial documents and unfiled returns were faxed to Sean’s Revenue Officer with a Wage Levy Release request and a proposed Installment Agreement as well.

End Result:

The Revenue Officer processed the missing returns which effectively lowered Sean’s tax liability by $2000. The Revenue Officer also agreed to release the Wage Levy and agreed to the Installment Agreement for monthly payments of only $150.

Case 6

Permanently Disabled Taxpayer Settles $17,326 Tax Liability for $50

Taxpayer: Darrel G. – Permanent Disability

Tax Problem:

Darrel came to TaxRise after years of trying to work through troubles with the IRS. On permanent disability and a fixed income of just over $1,100 per month he currently lives with his son. Darrel had made several arrangements in good faith with the IRS, but the amount the IRS required was unaffordable. As a result, scheduled payments were missed incurring more penalties and interest.
As of June of 2019, Darrel faced a liability of $17,326 and had not yet filed for 2015. In addition, he had accumulated a great deal of penalties for non-compliance in past tax filings

TaxRise’s Solution Process:

01.
TaxRise was able to establish a Currently Non-Collectible status, thereby stopping all collection attempts.
02.
TaxRise built an extensive Offer in Compromise case.
03.
After completion of negotiations with TaxRise, the IRS agreed to accept a settlement offer of $50 as payment infull.

End Result:

TaxRise was able to settle Darrel’s $17,326 tax liability for $50.

Case 7

Pastor Settles $206,000 IRS Tax Liability for $650

Taxpayer: Charles N. – Pastor

Tax Problem:

Charles is the pastor of his church in San Francisco. He and his wife have a modest life and live paycheck to paycheck with a combined income of just over $65k/year. They owed the IRS $126,185 for the tax years 2002 – 2013. Due to penalties and interest their balance grew to over $206,000.

TaxRise’s Solution Process:

01.
TaxRise was able to stop the IRS collection activity almost immediately.
02.
By working together with the clients, TaxRise was able to place them in a Currently Non-Collectible status.
03.
Next, TaxRise negotiated with the IRS to agree to a settlement of the balance, ultimately, reducing their tax bill down to a total of $650.

End Result:

TaxRise was able to settle Charles and his wife’s $206,000 tax liability for $650.

Case 8

IRS Accepts $400 Payment for Taxi Driver’s $76,000 Tax Liability

Taxpayer: Daniel P. – Taxi Driver

Tax Problem:

Daniel, a taxi driver in California, faced issues surrounding the past 12 years of his tax filings. The IRS threatened Daniel with Intent-to-Levy notices and aggressive collections for $76,000.

TaxRise’s Solution Process:

01.
TaxRise’s team immediately stopped the IRS from acting on their Intent to Levy.
02.
TaxRise built an extensive Offer in Compromise case.
03.
TaxRise was able to negotiate with the IRS to accept $400 as a payment infull for his original $76,000 tax liability and close their case against Daniel.

End Result:

TaxRise was able to settle Daniel’s $76,000 tax liability for $400.

Case 9

Self-Employed Plumber Pays $544 for $26,055 Tax bill

Taxpayer: Gary H. – Self-Employed Plumber

Tax Problem:

Gary developed an outstanding IRS liability of $26,055 due to incorrect accounting advice. He made about $2,200 a month with disposable income of $544. The IRS had given him a deadline of March of 2014 to file back tax returns for 2011 and 2012.

TaxRise’s Solution Process:

01.
TaxRise persuaded the auditor to accept a financial hardship reasoning, thereby placing the taxpayer in Currently Non-Collectible status.
02.
A few months later this client satisfied the statute of limitations on his 2003 back taxes which mandated a year of Currently Non-Collectible status.
03.
TaxRise demonstrated that collection of the taxes owed would be unfair and inequitable. Subsequently, an Offer in Compromise was submitted to the IRS which led to a pending settlement of just $544.

End Result:

TaxRise successfully negotiated the $26,055 tax bill down to a $544 Offer in Compromise settlement.

Case 10

Disabled Factory Employees Settle with IRS for $100, Saves $48,000

Taxpayer: Jeny & Dacie– Disabled Factory Employees

Tax Problem:

Jeny & Dacie were struggling. They are raising their two grandkids and live on a fixed income. They almost lost their home to the bank and spent their retirement savings to save it. Jeny suffered a back injury which required surgery which placed her on disability. When they called TaxRise, they owed over $45,000 to the IRS and had not yet filed their latest returns. Dacie was close to having her wages garnished by the IRS and had not yet filed for 2015.

TaxRise’s Solution Process:

01.
TaxRise was able to put an immediate Hold on the IRS collection activity.
02.
With the IRS collection stalled, TaxRise conducted a full review of their financial situation. TaxRise discovered that Jeny and Dacie were eligible to be placed in Currently Non- Collectible status.
03.
Due to their financial hardship, TaxRise was able to further negotiate for them, and lower their balance to $100 and save Jeny & Dacie $48,000!

End Result:

TaxRise was able to settle Randy and Jo’s $48,000 tax liability for $100.

Case 11

Sub-Contractor Settles $45,129 Tax Liability for $100

Taxpayer: George J. – Sub-Contractor

Tax Problem:

George is a sub-contractor out of Florida. His business was hit hard with the struggling economy. In order to stay afloat, he had to stop withholding his earnings for taxes, resulting in $45,129 taxes owed over six different tax years.
Eventually, the IRS placed him into collections and had a lien placed against his home.

TaxRise’s Solution Process:

01.
TaxRise reassessed his filed returns and financial statements.
02.
TaxRise filed adjusted tax returns for the client and were able to get an Offer in Compromise for $100 approved, saving the client $45,129.
03.
The lien against his home was lifted.

End Result:

TaxRise was able to settle the $45,129 tax liability through an Offer in Compromise for $100, a savings of 99%.

Case 12

$120,000 Tax Liability Ruled Non Collectible

Taxpayer: John H. – Private Farmer

Tax Problem:

John had not filed his tax returns for over 10 years and owed over $120,000 in back taxes, penalties and interest. The Revenue Officer assigned to this case had levied his bank account and social security income.
Additionally John’s farm could be seized by the IRS.

TaxRise’s Solution Process:

01.
TaxRise convinced the Revenue Officer to remove the levy.
02.
TaxRise convinced the Revenue Officer to realize John’s hardship and approve a Currently Non-Collectible status.
03.
TaxRise demonstrated that the client’s situation did not improve while within the 10-year statute of limitations. Because of this, the billl owed to the IRS will become non-collectible and no other form of tax resolution will be necessary.

End Result:

TaxRise successfully negotiated that the $120,000 tax liability owed was non-collectible rendering additional tax resolution unnecessary.

Case 13

Disabled Book Keeper Settles $15,660 Tax Liability for $100

Taxpayer: Chris K. – Disabled Print Shop Manager

Tax Problem:

Chris was a Book Keeper out of Washington, D.C. before a medical heart condition caused him to become permanently disabled and reduced his income by 2/3 of his previous salary. He was not able to afford his taxes and wound up owing $15,660 to the IRS. He created a payment arrangement with the IRS, but it was unaffordable based on his newly reduced disability income, and it was going to take multiple years to pay off.
Both his wife and daughter started contributing as much as financially possible, but unfortunately, it still wasn’t enough and they eventually lost their home to foreclosure.

TaxRise’s Solution Process:

01.
TaxRise was able to stop the monthly payment by placing them into a Currently Non-Collectible status with the IRS.
02.
Next, TaxRise filed their current year tax return which resulted in a maximum refund.
03.
Finally TaxRise negotiated an Offer in Compromise with the IRS, reducing the balance to $100, saving them $15, 560 or 99% of their balance!

End Result:

TaxRise was able to settle the $15,660 outstanding tax liability for $100, a savings of 99%.

Case 14

Steven Settled His $62,709 Tax Liability for $100 — Saving 99%

Taxpayer: Steven B. – Unemployed

Tax Problem:

John had some medical issues that required his hospitalization. As a result, he lost his job. He depleted his retirement savings and had to file bankruptcy resulting in a voluntary surrender his home to the bank as a short sale. During this financial hardship, John took an early distribution of his retirement funds triggering a $62,709 tax liability to the IRS.

TaxRise’s Solution Process:

01.
TaxRise immediately negotiated to get the Wage Levy released.
02.
TaxRise prepared and filed John’s tax return for 2011 which the client had not filed.
03.
TaxRise was able to prove John’s hardship to the IRS Revenue Officer who approved a Currently Non- Collectible status, allowing TaxRise time to gather further financials and documents.

End Result:

TaxRise was able to settle the $62,709 tax liability through an Offer in Compromise for $100, a savings of 99%.

Case 15

Bank & CD Levy Release

Taxpayer: Henry H. – Working from Home

Tax Problem:

Henry’s total IRS liability was $125,000. To collect, the IRS placed a levy on Henry’s savings and checking accounts (joint account with $15,000 in the bank). The IRS also placed a levy on his wife’s CD account which belonged solely to her for $65,000.
This totaled a $80,000 levy for the three accounts.

TaxRise’s Solution Process:

01.
TaxRise negotiated a 60- day hold on all collection activites.
02.
TaxRise completed a thorough investigation of Henry’s financial record and created a case to present to the IRS.

End Result:

TaxRise negotiated to release the $80,000 bank and CD levy, reducing the total levy amount to only $6000.

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