IRS Settles NY Music Exec $50k Tax Debt for $2763

Even though you have a CPA preparing your returns, they may have no idea that you’re not paying your taxes. That was the case with this client. After he had a return prepared, he complained to his CPA that he couldn’t afford to pay his tax liability as he was already in a payment plan with the IRS on his older tax years and owed the IRS over $50k. After hearing this, the CPA instructed him to call our firm immediately for a consultation.

Upon reviewing his case, we found that the payment arrangement that IRS had put him into was almost $600 per month. The IRS put the taxpayer in a position where he was paying towards his old tax debt but continuing to accrue new tax debts – pyramiding – moving forward. After conducting a financial analysis and determining that he was a likely OIC candidate, we immediately contacted the IRS, defaulted his installment agreement and submitted our petition for a settlement. After negotiating with the IRS, we were able to structure a settlement of the $50,430 tax debt for only $2,763.