Broomfield, Colorado (PRWEB) May 03, 2013
The 20/20 Tax Resolution team has once again saved a client thousands while protecting them from aggressive IRS collection actions by successfully negotiating an offer in compromise on behalf of their client with the IRS.
When the client first contacted the 20/20 Tax Resolution team he had accrued a tax debt of approximately $55,000 over a 5 year period. In addition, the client had one missing tax return and was facing aggressive IRS collection actions. The matter was further complicated because the client had been previously self-employed and had accrued liability from self-employment tax. The self-employment tax is the way those who are self-employed pay Social Security and Medicare payroll taxes. When a person works for an employer, the employer and employee split the cost of these payroll taxes, each paying 7.65% of eligible wages. In the case of someone who is self-employed, however, the individual must pay both parts of the payroll taxes because they are their own employer.
When the client hired 20/20 Tax Resolution, the team immediately went to work on resolving the client’s tax issues. First they took action to protect their client from aggressive IRS collections. When a tax payer has an outstanding tax debt and the IRS believes there is a chance the tax debt will not be paid they often issue a tax lien or a tax levy against the tax payer’s property. A tax lien is a legal claim against a noncompliant tax payer’s assets. The tax lien can prevent the tax payer from selling these assets until the tax debt is paid. A tax levy, on the other hand, is a legal seizure of the noncompliant tax payer’s assets to satisfy a tax debt including bank accounts.
Once the client’s assets were protected, the 20/20 Tax Resolution team helped the client file the missing tax return. This not only helped bring the client back into compliance, it also paved the way for the 20/20 Tax Resolution team to begin negotiations with the IRS for an offer in compromise. After 7 months the 20/20 Tax Resolution team was able to get their client and offer in compromise, which reduced their client’s tax liability from $55,000 to a $1,200 saving the client over $53,000.
The Offer in Compromise program is an IRS program that allows qualified individuals with an unpaid tax debt to negotiate a settled amount that is less than the total owed to clear the debt. There are several conditions that must be met in order to qualify for consideration for an OIC. These conditions can sometimes be difficult to meet, and do not guarantee a tax payer that an OIC will be negotiated - only that the IRS give a properly submitted OIC fair consideration. The matter is still entirely at the discretion of the IRS and in recent years roughly 20% of the Offers in Compromise submitted to the IRS were accepted by the IRS. Find out more about the Offer in Compromise program at http://www.2020taxdebthelp.com/irs-offer-in-compromise.php.
Founded in 1998, 20/20 Tax Resolution is the market leader in tax resolution services for businesses and individuals nationwide. Over the past 15 years, 20/20 Tax Resolution’s Enrolled Agents and licensed tax professionals have developed compassionate solutions for over 15,000 clients looking for help with their tax issues. 20/20 Tax Resolution is a privately-held company located in Broomfield, CO. For more information on 20/20 Tax Resolution please call 1-800-880-7318 or visit http://www.2020taxdebthelp.com. Offer in Compromise