Real Life Case Examples
These are some recent examples of how we successfully solved our clients’ tax problems with the IRS.
Offers In Compromise (OIC)
This is an example of accepted Offer in Compromise based on Doubt as to Collectability. Not everyone qualifies but if you do, it is an efficient way to put your tax problems behind you and get a fresh start. These are a few accepted offers.
OFFER IN COMPROMISE-Example 1 (PDF)
OFFER IN COMPROMISE- Example 2 (PDF)
Currently Not Collectible
If you are not in a position to pay the back taxes you owe and are having “Financial Difficulties” you may qualify to have you back taxes temporarily suspended. These are a few of our actual clients that were placed in a Currently Non Collectible Status.
2007 CNC TRANSCRIPT (PDF)
CNC IRS LETTER (PDF)
2014 CNC TRANSCRIPT (PDF)
2004 CNC TRANSCRIPT (PDF)
2013 CNC TRANSCRIPT (PDF)
CNC IRS LETTER (PDF)
Appeal
If the IRS makes an adjustment or change to your tax filing because of an audit or is taking an in appropriate collection action, you may be able to request an appeal to resolve the issue. These are recent appeals we did for our client. The mission of Appeals is to settle the dispute before the case gets to tax court.
Audit Reconsideration
If you never had the opportunity to respond to an IRS audit or did not have all the required documentation during the original audit. An Audit Reconsideration can allow you to get another opportunity to substantiate deductions or provide basis on assets sold, just to name a few. These are a few of our clients that we did an audit reconsideration to eliminate or reduce a prior tax assessment.
2003 AUDIT RECONSIDERATION LETTER CP21C (PDF)
2005 AUDIT RECONSIDERATION TRANSCRIPT (PDF)
2008-2009 AUDIT RECONSIDERATION TRANSCRIPT (PDF)
2008-2009 AUDIT RECONSIDERATION TRANSCRIPT (PDF)
CP2000
A CP2000 is a correspondence audit generally based upon a comparisons of income and deductions reported to the IRS by Employers or Payor’s. When the Information on your tax return does not match, you will receive a proposed change to your tax liability. By providing information to the IRS you can stop the IRS from making an adjustment. These are some of our recent resolutions with the IRS.
Amended Tax Return
If you discovered you made an error to a tax return you filed, you may be able to amended your tax return to fix the error. This is an example of an amended tax return that substantially reduced our clients liability.
2002 AMENDED RETURN CP21A LETTER (PDF)
2013 AMENDED RETURN TRANSCRIPT (PDF)
2013 AMENDED RETURN TRANSCRIPT (PDF)
2007 AMENDED RETURN TRANSCRIPT (PDF)
Installment Agreement
If you owe back taxes that you are not able to pay in full, generally you can obtain an installment agreement in most cases. These are a few examples of accepted installment agreements by the IRS.
2014 INSTALLMENT AGREEMENT IRS LETTER (PDF)
PARTIAL PAY INSTALLMENT AGREEMENT IRS LETTER (PDF)
PPIA 2006 (PDF)
Penalty Abatement
The IRS can consider a penalty abatement on late filed or late paid taxes. The IRS will not voluntarily abate penalties but you can request that penalties be removed. These are a few examples of penalties waived by the IRS.
PENALTY WAIVER LETTER 2005 (PDF)
PENALTY WAIVER LETTER 2015 (PDF)
PENALTY WAIVER LETTER 2008 (PDF)
PENALTY WAIVER LETTER 2008 (PDF)
PENALTY WAIVER LETTER 2013 (PDF)
PENALTY WAIVER TRANSCRIPT 2013 (PDF)
PENALTY WAIVER LETTER 2014 (PDF)
Statute of Limitations
Sometimes the best strategy is to wait out the time the IRS is legally allowed to collect the back taxes you owe. Generally the IRS has 10 years to collect the taxes you owe. If they go unpaid, once the 10 year statute of limitations has ended, the back taxes expire. The IRS will “write off” the amount owed. These are some example of taxes that expired.
SOL 2004 (PDF)
SOL 2004 (PDF)
SOL 2005-2006 (PDF)
SOL 2004 (PDF)
SOL 2006 (PDF)
SOL CNC 2006 (PDF)
IRS Mistakes
You will be glad to know that the IRS makes mistakes all the time. I am proving an example of an examination report from an IRS auditor who make a significant mistake that could have caused my client to over pay.
IRS ERRORS EXAMINATION REPORT 2010 (PDF)
EXAMINATION LETTER 2016 (PDF)
EXAMINATION LETTER 2010 CP21E (PDF)
Bankruptcy
Bankruptcy may be a viable option to eliminating or reduce the amount of Income Taxes you may owe. While we do not do Bankruptcies, we do assist our clients and their Attorneys with the Bankruptcy analysis of dischargeable taxes. Recently this client eliminated many of the taxes owed through a Bankruptcy.
State of Hawaii
The State of Hawaii can make the same type of adjustments as the IRS and we have helped our clients resolve their State of Hawaii tax issues. See various resolutions.
HAWAII AUDIT CANCELLED LETTER 2006 (PDF)
HAWAII AUDIT CLOSING LETTER 2013 (PDF)
HAWAIII GENERAL EXCISE IA LETTER 2013 (PDF)
HAWAII OFFER IN COMPROMISE LETTER 2005-2006 (PDF)
HAWAII SPECIAL PROCEDURES CLOSING LETTER (PDF)
Trust Fund Recovery Penalty
If you operated a Business and did not pay your Employment Taxes, the IRS may be able to hold you responsible for a portion of the unpaid Employment taxes if you are considered a “Responsible Person”. If you are held responsible the IRS will attach the Trust Fund Portion of the Payroll taxes against your Social Security Number. We have defended and prevented
the IRS from making these types of assessments.
TAXPAYER ADVOCATE
The Taxpayer Advocate is an independent organization within the IRS. The Taxpayer Advocate is supposed to protect your rights as a taxpayer and help you with tax problems you can’t resolve on your own. We will occasionally use the Taxpayer Advocate to help resolving unusual situations that could not be resolved through normal IRS channels.
EXAMINATIONS
An Examination by the IRS can be either in person or as a correspondence Audit through the mail. The purpose of the examination is to determine if your income, expenses, deductions or credits is correctly calculated.