Business Owner Financially Recovers After Wiping Out 99.5% of Tax Debt

TaxRise reduces tax liability by 99.5%

February, 2020

After going through a divorce and relocating, Jeffrey’s financial situation began to spiral downward. As the proud owner of a business that once flourished, he described the emotional and mental trials that came with letting go employees due to decreased revenue.

The IRS scheduled a lien on Jeffrey’s account and applied harsh penalties along with interest. These accrued penalties made it impossible for Jeffrey to become current.

With a debt of $84,122, Jeffrey was told that the lowest payment option was $997 per month, for 84 months.

TaxRise's Resolution Strategy

Fortunately, TaxRise was there to tell him that he had other options. Jeffrey’s team implemented a levy prevention strategy while putting together an OIC (offer in compromise). The IRS had to cease their collection tactics.

We started with handwritten letters that were sent to us from Jeffrey himself, describing his physical, emotional and financial hardship. This is a very important part of the resolution process, as it gives us a window into the lives of our clients while strengthening their case with the IRS.

Jeffrey, not being able to afford expenses from his divorce, being forced to relocate, and undergoing a change in tax status, all served to negatively impacting his life. The IRS penalties only added to that stress and made it nearly impossible for him to recover financially.

Once we were able to draft a case proving Jeffrey’s hardship, the OIC was submitted.

The End Result

The offer to settle Jeffrey’s debt for $500 was accepted by the IRS. His tax liability was $82,122 when he came to TaxRise for help, which means he saved 99.5%!

Almost all of his back taxes were wiped out and as of now he has paid his liability in full. Today, Jeffrey is still in compliance with the IRS.

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* Client’s name changed for privacy.