Feb 3, 2017

Creative Tax Resolution Strategy

Our client in Denver Colorado hired Clear Creek to resolve a $180,000 personal tax liability with the Internal Revenue Service. After review of our client’s financials, it was determined by the Associate that our client qualified for a Status 53- Currently Non-collectable Status. The Associate and team quickly negotiated a ‘Hold on Enforced Collection’ action to allow time for our client to gather the updated personal financial documentation necessary to resolve the case. The Associate reviewed the personal financial information and submitted a proposal for a Status 53- Currently Non-collectable Status to the IRS. After extensive negotiations with the IRS, the Associate was successful in negotiating the acceptance of the resolution. Fortunately, due to the collection statute expiration dates on some periods of the liability, approximately $60,000 will expire while our client is in Status 53.

Another Creative Tax Resolution Case Study

A gynecologist out of Miami, Florida hired Clear Creek to manage a liability of $200,000 owed to the Internal Revenue Service for past due Individual Income and Trust Fund taxes. The Associate assigned to the case was able to negotiate a ‘Stay on Enforced Collections’ to protect our client’s assets while compiling all of the outstanding tax returns and the requested financial documents. Upon receipt of the financial documents, the Associate analyzed our client’s financial condition and determined that ‘Currently Non Collectable’ status would be the best possible resolution, as the Collection Statutes Expiration Dates were set to run in two years. The Associate then prepared and submitted all of the applicable documentation with a proposed Non Collectable request. The Associate negotiated for the acceptance of the proposed resolution. Clear Creek then monitored the account every few months until the Collection Statutes Expiration Dates dropped, resulting in a savings of $150,000.  The remaining balances will be resolved through an Offer in Compromise.

A Creative Tax Resolution Case Study

A client in Buchanan, Tennessee hired Clear Creek to manage $65,000 liability owed to the Internal Revenue Service. Clear Creek worked through a financial form with our client and proposed a status 53 proposal to the Internal Revenue Service. This was done to protect our client from any enforcement action while the assessment dates are running. The oldest period of tax liability was for the year 2004.  This strategy enabled our client to walk away from $51,151.61 in tax liability. We are now negotiating a small Installment Agreement for the balance.

Recent Formalized Installment Agreement

Our client hired us owing $80,000 to the IRS and $40,000 owed to the state. Within 30 days we were able to negotiate an $1,800 IRS Installment Agreement and a $500 state Installment Agreement.

Another Creative Resolution

A family-owned construction business in Pennsylvania hired Clear Creek to formalize a resolution with the Internal Revenue Service. The mother along with her three sons were all assessed Trust Fund Recovery Penalty and their other business was assessed as an Alter Ego / successor entity to the first business (an additional $1.5 million collections case with the IRS). After extensive negations and Appeals Hearings with the IRS, Clear Creek was finally able to close out all filing requirements and put both the business entities into Status-53 Currently Non-Collectable. The first business entity was closed as a defunct business entity, and the successor entity’s current outstanding liability was resolved after asset transfers were addressed and valuations were negotiated, resulting in no payments to the Internal Revenue Service from our clients. During the negotiations with the IRS, neither of the business entities nor the corporate officers of the business had to pay any funds to the Internal Revenue Service. All parties were protected from all enforced collection activity for the entire time we represented them. Now that both business collections cases are resolved, Clear Creek can move forward with the resolution of the corporate officers’ personal cases, which will be as successful as our resolutions with the original business entities.

Uncollectible Status Negotiated

A client in Bay Shore, New York, hired Clear Creek Consulting to manage a business liability with the Internal Revenue Service for more than $13,000. During our research and work on the account, we learned that our client had already been assessed the Trust Fund Recovery Penalty for several periods and the business in question was now closed. We placed the business account into ‘Currently Not Collectible’ status, and began looking into our client’s personal balances with the IRS. We learned that our client owed approximately $117,000 in 1040 and Trust Fund Recovery Penalty balances and actively worked with the Revenue Officer that was assigned. Our client had communicated a desire to the Revenue Officer for an Offer In Compromise resolution but through our investigation of our client’s financial situation, we learned that there was far too much equity in the home, and a payment plan or status 53, would be in our client’s best interest. We worked hard to provide proof of all allowable expenses as the Revenue Officer rejected thousands of dollars in credit card debt. The Revenue Officer was also concerned with our client’s three previous defaulted Installment Agreements and as a result, set hard-to-meet deadlines requesting years of information and proof of expenses. During this time, we kept our client protected against bank account levies by filing a Collection Due Process request in response to a Final Notice of Intent to Levy. We met all 9297 deadlines and negotiated down from the $500 ability to pay, originally shown on the personal financial statements, to a Currently Not Collectible status.

A Negotiated Offer in Compromise Accepted

Our client located in Oxnard, California hired Clear Creek to negotiate a ‘Hold of Enforced Collections’ and a Partial Pay Installment Agreement. Our client had accrued a little more than $45,000 in principal tax, penalties, and interest between 2001 and 2008.  With his health deteriorating due to macular degeneration and glaucoma, and with two surgeries upcoming which will render him blind and disabled, our client agreed to instead, pursue an Offer in Compromise to settle the outstanding liabilities. The Associate was able to demonstrate that our client had no means by which to pay the outstanding liability and an Offer of $300 was submitted in January 2016.  His low income, plus his health conditions, indicated that the future collection potential would not satisfy the balance owed. As such, the IRS submitted a counter offer of $486 which was agreed to by our client.  The client will realize a 99% savings of the total liability.