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.   

A Negotiated Offer in Compromise

An individual hired Clear Creek in June of 2015 to resolve her personal liability of $43,000 with the Internal Revenue Service. Our client is a 68 year old widow living on only Social Security Income, and a small pension. From June through September of 2015 our client was informed by another company that this woman had missing returns that needed to be filed, and also gathered Form 433-A: Collection Information Statement for Wage Earners and Self-Employed Individuals to determine the best possible resolution for her. Once the woman hired our firm we straightened out an Internal Revenue Service mistake with the taxpayer’s Social Security Number, and we determined that an Offer in Compromise was the best way to resolve our client’s tax matter. From that point forward, Clear Creek worked with our client to put together a comprehensive and in depth Offer in Compromise to present and submit to the Internal Revenue Service. For the following 8 months, the Internal Revenue Service continued to ask for additional time to review the Offer in Compromise. The only foreseen issue with the Offer in Compromise was her equity in her home. Clear Creek was, however, able to establish that our client was unable to obtain equity out of her home due to her low monthly income. Shortly after this conversation we were able to confirm that the Offer in Compromise would be accepted for $500, saving our client $42,500.

Another Partial Payment Installment Agreement Negotiated

A small business owner in Maspeth, New York hired Clear Creek to manage personal liabilities of over $38,000 for outstanding Individual Income Tax due to the Internal Revenue Service stemming from her Sole Proprietorship. The Associate assigned to the case discovered that due to our client’s income, negotiating for a Partial Pay Installment Agreement would allow our client to only pay a portion of the balance due to the Internal Revenue Service. The Associate then gathered accurate financial information and documentation from our client and entered into active negotiations with Internal Revenue Service. After weeks of negotiation, the Associate and negotiated the acceptance of a Partial Pay Installment Agreement whereby our client is required to make payments of $50 per month until the collection statute expires, thus leaving our client with a total payment of $4,200 once the collection statue expires. This saved our client approximately $33,80.

Partial Pay Installment Negotiation

Our client hired Clear Creek to resolve their personal and business liabilities of $50,000 with the Internal Revenue Service.  The Associate determined that a Partial Pay Installment Agreement would result in similar savings as an Offer in Compromise, and it appeared to be a much better resolution for our client. After discussing the plan to proceed with our client, the Associate submitted a Formal Installment Agreement with Automated Collections of the Internal Revenue Service along with supporting documentation. Within a matter of weeks, we received confirmation that the Internal Revenue Service had accepted our payment agreement without needing any further documentation or information. Our client is now very happy with our results as we saved him upwards of $44,000, and they have hired us to manage additional tax matters for them.

Partial Payment Installment Agreement

Our client hired us in December of 2015, after 7 years and $40,000 paid to another tax resolution company.  Within a few weeks, we negotiated a Partial Pay Installment Agreement for $500.  This was all pending the filing of the 3rd Quarter Form 941: Federal Withholding Tax Return, and sending the Officer proof of 3rd Quarter Federal Tax Deposits.  Our client currently owes about $150,000 and will end up paying roughly $500 per month for the remainder of the statutes on the balances due. This will be a maximum of 120 months (10 years), and would equal a total of $60,000 to be paid towards the resolution of this debt saving our client roughly $90,000.