Feb 3, 2017

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.