In September of 2019, Mitchell* was forced to stop working. From there he relied on Social Security for income and had to change his health insurance. After purchasing a vehicle, expenses were piling up as he was challenged with various health issues.
Diabetes, chronic neck and back pain, and sleep apnea all plagued his day-to-day. Mitchell was unable to make consistent payments on his back taxes, so the IRS hit him with penalties and high interest rates. Â Naturally, the stress began to weigh on him, and he suffered from symptoms of depression.
The added tax debt was impossible for him to pay.
$23,329 in debt, Mitchell found the help he needed with TaxRise. He informed us that he lives frugally, but his income just barely covers his expenses. The added tax debt was impossible for him to pay.
TaxRise’s Resolution Strategy
The TaxRise team asked Mitchell to draft a letter of hardship. This is a personal letter sent to the IRS with the offer packet to help a case. We tend to ask our clients for these letters so that the IRS can get a glimpse into the life of our client.
The IRS paints the picture that delinquent taxpayers are bad, but the reality is that our clients are just subjected to hard times. Showing humility and vulnerability can sway a case significantly.
Even after facing rejection, we didn’t give up on Mitchell.
The End Result
The IRS did not accept the first offer that was shown to them, but we didn’t give up on our client. We reconvened and drafted a new offer. In the end, Mitchell’s debt was reduced to $500, saving him 97.9%! He only paid 2.1% of his original liability, $23,329.
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* Client’s name changed for privacy.
