Over the past two decades, 20/20 Tax Resolution agents have seen and heard just about everything. Clients come to us because they’re facing devastating setbacks, financial missteps or stumbling business ventures. Our job, however, is not to judge the circumstances of these clients. It’s to help them find a way back to their productive, satisfying and happy lives. In the process of doing our work, we’ll go to great lengths to help clients reach their goal. Our innovative agents are accustomed to going the extra mile, leaving no stone unturned and fighting for the best resolution.

The following are just a few of our most unusual cases from the past 20 years:

The Doubter

You know you’ve done something right when your client is in such disbelief that he asks to call the IRS to confirm the outcome you’ve achieved.

“This client owed around $63,000,” said 20/20 Agent Alberto Douriet, E.A. “After reviewing his file, we found a settlement would have been around $10,000. He wanted an Offer In Compromise (OIC).”

Not bad, Alberto thought. But he suspected there could be a better resolution in a payment plan. Here’s why: Little did the client know, the Collection Statute Expiration Dates were scheduled to expire in nine months. Alberto explained to the client he could pay the $10K with an OIC, or pay a mere $125 a month for nine months until the expiration (a total of only $1,125). Of course, the client jumped at the chance to so dramatically reduce his costs.

“The first few times the client and I spoke, he was set on an OIC and didn’t want to talk about anything else,” Alberto said. “He was a very “hands on” individual, so I sent him information about CSEDs and encouraged him to do his own research on these matters to gain his trust, which I quickly did. Once it was all over, he was in shock.”

Saved From An Embezzler

What do you do when the CFO of your company embezzles more than a million dollars? Throw in the towel and move on, right? Not in the case of an enterprising client from 20/20 Agent Gabe Leap, E.A.

“This case was strange and unusual in that the proprietor of the existing business had nothing to do with the tax liability,” Gabe said.

Not only had a scoundrel embezzled money, but he liquidated the retirement accounts of employees. Without expert intervention, the company’s dedicated workers would be left high and dry – and without a job.

“The taxpayer only took it over in an attempt to keep the business operating so he and his fellow employees would have a place to work,” Gabe said.

A noble cause, indeed. But one fraught with a lot of headaches and risk – not the least of which was potential prosecution from law enforcement. Fortunately, Gabe and his team were able to deflect any charges and de-fuse the situation – and in the end people’s jobs were saved.

“We had to negotiate stays of collections and bring the FBI and the Department of Labor,” Gabe said. “We were able to legitimize the claim to the taxing authorities that the theft was the reason for the accrual.”

Saving A Necessary Service

When you live in a remote area, you’re often at the mercy of Mother Nature and challenging logistics. It’s not always easy to do simple things – and basic needs must be constantly replenished, often from far-off locations. So an airline delivery service that provides necessary goods and services is a critical need.

“Our client was an aviation company that flew critical flights to service remote parts of this state with goods and services,” said 20/20 Agent Joe Cunningham, E.A. “The client flew for the U.S. Postal Service, the FBI and local law enforcement, among other organizations.”

But when tax issues threatened to ground the planes, 20/20 was able to work with an alphabet soup list of government entities and mechanisms to keep pilots (and packages) in the air. All told, the 20/20 team’s efforts to save the company involved coordinating with the United States Postal Service (USPS), the Federal Aviation Administration (FAA), the FMS Division of Treasury, the IRS and others to save the airline.

Cunningham and his team used a variety of mechanisms to resolve the airline’s financial woes.

“We saved their company,” Joe said, “and kept this service available to residents.”

Boy Trouble Leads To Tax Trouble

Sometimes true love is not what it seems. But in the heat of the moment, we swear we’ll do anything to demonstrate our commitment to a relationship. Common sense doesn’t always win out.

“This client had significant penalties as a result of relying on a prior boyfriend who convinced her to be a ‘tax protester’ for several years,” said 20/20 Agent Matt Schiller, E.A. “He persuaded her that income tax in the United States is unconstitutional.”

Matt was able to work with the client to educate her on why she should promise never to take this position moving forward. In turn, he was able to convince the IRS of his client’s new perspective, removing the stigma and bias toward her that her Revenue Officer had developed due to the client’s previous viewpoint.

“I established an installment agreement to resolve the back tax,” Matt said. “We are currently preparing a penalty abatement request.”

Senior Security

Even the U.S. Government can have a heart sometimes. That turned out to be just the case for one of 20/20 Agent Tiffani Million’s clients. Tiffani’s client, a 71-year-old graphic designer, lived off his Social Security earnings and made a very limited amount of extra money through his small graphic design business.

“His business generated very little income and it possessed assets with little to no value,” Tiffani said. “Personally, he had one used vehicle and possessed no other assets with equity.  After he paid all of his monthly expenses, he didn’t have much left to live off of at the end of the month.”

Unfortunately, he owed back taxes of more than $84,000 – a sum he could never even consider hoping to pay. Tiffani recognized his situation was untenable, and performed what some might say was a miracle.

“I submitted an Offer in Compromise on the taxpayer’s behalf for $1, because of his extreme circumstances,” she said. “And the Internal Revenue Service accepted!”

Helping A Client Move Forward

It was a “Catch 22” type of situation for one of 20/20 Agent Sam Million’s clients. The client couldn’t pay her taxes because of lack of work, and she couldn’t land a steady job because of a federal tax lien on her credit report. What’s more, she was facing a $40,000 tax liability.

“The client had been mostly unemployed for several years with the occasional contracting position that would last one to three months,” Sam said. “We had tried several different methods of resolution, including an Offer in Compromise on her $40,000 tax liability. When we finally had an examiner agree to give a settlement of $6,000 the client had no current income and couldn’t afford the repayment.”

It seemed she was doomed to failure no matter what she did. But Sam didn’t give up hope. He understood that a clean credit report could help the client in her pursuit of full-time work – and the federal tax lien was preventing that from happening.

“After several months we decided to pursue a withdrawal of the federal tax lien so she could then qualify for a more long-term job position,” he said. “We had never requested a lien withdrawal with no resolution in place or tax liability being full paid. But we rolled the dice and submitted a request for the lien to be withdrawn so that the taxpayer could qualify for job opportunities and an income that would help her sustain a repayment plan to the IRS.”

The IRS Technical Advisor agreed to this, and issued a withdrawal of the federal tax lien, Sam said. In addition, the 20/20 team was able to negotiate a first-time abatement on the liability, reducing the client’s debt by roughly $6,000.

Saving Christmas for 100 families

Think of this scenario: The IRS issues a hefty levy against your construction company. It’s five days before Christmas. The $1.7 million liability is just $100,000 shy of your total business bank account. You’re forced to tell employees they won’t be receiving their expected regular paycheck right before the holiday.

Although he didn’t sport a white beard and a jolly red suit, 20/20 Agent Mike Ranalli may as well have swept in on a one-horse open sleigh when he told the business owner he had secured a release of the $1.7 million levy just prior to Dec. 25^th.

“We were able to get the entire levy released through procedural wizardry,” said Mike. “As a result, the business was able to pay the company’s more than 100 employees. The night we told him about the funds release, our client said that he went home and downed a mug of vodka. No ice. No mixer. Just a mug of vodka. Whew!”

A look back at our most unusual cases. @2020TaxResInc
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Here’s your first step: DO NOT IGNORE THE IRS NOTICE. For your next step, read the following concerns that 20/20 most often hears from clients calling our office for the first time. With our 19 years of experience helping people overcome tax difficulties, we’ve heard just about every concern. Here are the top five concerns common to our clients. 

1. Aggressive enforcement and liens

People who speak with 20/20 agents overwhelmingly express fear that the IRS wants payment immediately and by any way possible. Taxpayers want protection from aggressive enforcement actions like bank levies, accounts receivables levies, wage garnishments and asset seizure. While every person’s case is unique, we have a variety of tools we can use to intercede and ensure that these extreme IRS actions are avoided. In nearly every case, we are able to use these tools to give clients the time and space they need to establish compliance and form a strategy to meeting their tax obligations.

2. Difficulty dealing with or communicating with the IRS

It’s not surprising that the second most-frequent concern we hear is that resolving this issue will require inordinate amounts of time, effort and frustration. Who hasn’t sat on hold trying to reach an account service representative? Taxpayers envision a customer service nightmare multiplied tenfold by government inefficiency. Because we work with the IRS all the time, we’re familiar with the agency’s communications processes and we know how to reach the right person to get the right information. We take over communication and do it for the taxpayer, freeing them up to run their business – and their life.

3. Revenue officer showing up at place of business and employees or others finding out about liability

While the IRS is stepping up enforcement and collection efforts of unpaid or delinquent taxes (particularly employment taxes), the agency does work to respect and protect a taxpayer’s privacy. However, in a busy office where documentation and information is shared widely, it’s entirely possible that some news about tax issues may filter out to others. But any employee or other individual will feel less anxious when they know a qualified, experienced tax resolution company like 20/20 is working on the case. The alternative is to have employees or others worry that nothing is being done to manage the liability.

4. Debt to IRS growing out of control (penalties and interest accrual)

There are very few ways to avoid having to pay interest when a tax obligation is delinquent. However, 20/20 can make certain that all obligations, interest and even any penalties will be the least amount allowable under the law. The bottom line: Doing something to resolve the situation is always better than doing nothing.

5. Getting a good and manageable resolution.

Finally, 20/20 clients are worried about achieving a fair, manageable resolution that won’t break the bank and will alleviate their worries. Fortunately, we’ve been helping clients achieve this goal for almost 20 years so we can say with confidence that we can help most taxpayers. We’ll use our experience to obtain the best resolution available under your specific circumstances.

While reactions to potential IRS action vary, it’s fairly typical for clients to feel some or all of the above concerns. Some people seem unfazed and are not frightened of the IRS at all. Typically, this reaction comes from taxpayers who have dealt with the IRS previously. The strongest fear many people experience is that others (employees, spouses, friends, etc.) will discover the problem. There’s a certain stigma about owing money to IRS – and they worry what others will think.

But the truth is many people experience these types of problems and it doesn’t indicate any lack of character. Taxes are a complicated issue – and running a business is always challenging. What’s important is recognizing when you need help in order to keep any problems from becoming overly burdensome. That’s precisely why we exist.

Facing IRS Action? Here’s How Not to Worry. 20/20 reveals the top concerns of clients – and how to alleviate them. @2020TaxResInc
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If you own a company, take some time to familiarize yourself with some of the most common myths many business owners believe when addressing their payroll tax concerns.

Questions about your unique situation? Learn more about ways we can help or feel free to contact us at any time!

To download a high-resolution version of this infographic, please click here.

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20/20 Tax Resolution offers the following resources to help businesses manage their tax liabilities and obligations:

• Tax forms: Quick and easy links to a wide variety of tax forms. https://2020taxresolution.com/forms/
• Find out how much you owe: Calculate penalties and interest on any outstanding tax liabilities. https://2020taxresolution.com/calculate-your-liability/

The Internal Revenue Service provides a thorough overview of basic tax knowledge that is valuable to any business owner:

• Business taxes: An examination of the five basic types of business taxes.  https://www.irs.gov/businesses/small-businesses-self-employed/business-taxes
• Tax Information for businesses: A lengthy list of links to tax information for a variety of types of businesses. https://www.irs.gov/businesses
• Operating a business: Basic tax information surrounding basic business operations. https://www.irs.gov/businesses/small-businesses-self-employed/operating-a-business
• Filing information for corporations: How to file a variety of types of taxes. https://www.irs.gov/filing/corporations

The U.S. Small Business Administration offers a variety of resources for business owners. Click on the links below to drill down deeper into each of these topics:

• Running a business: Covers everything from basic business accounting to marketing and human resources. https://www.sba.gov/managing-business/running-business
• Leading your business: Learn the basics of business leadership – from how to be an effective leader, make smart decisions and manage employees. https://www.sba.gov/managing-business/leading-your-business
• Business law & regulations: A thorough review of industry laws and regulations, employment and labor law and how to handle legal concerns. https://www.sba.gov/managing-business/business-law-regulations
• Business financials: Understanding the financial needs of managing a business and links to options to help start and grow a business. https://www.sba.gov/starting-business/business-financials
• Filing and paying taxes: Basic taxation information that every business owner should know. https://www.sba.gov/starting-business/filing-paying-taxes

Seeking out basic #business tips? Look no further. @2020TaxResInc
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This foundation helped shape his most recent EA Journal article (June-August 2016 edition), What’s Your Process? How to Work a Collection Case. For the sixth year in a row, Miles has been published in The National Association of Enrolled Agents (NAEA) bi-monthly publication — this prestigious journal allows members of the NAEA to stay up-to-date on any industry trends, tax updates and association news. 

When asked to discuss the overarching theme of his piece, Miles explains, “Ultimately, a practitioner needs to be able to advise a taxpayer on what could happen and also what is most likely to happen in the course of a collection case. The practitioner then must take the taxpayer’s specific situation into account to develop a strategy that allows decisions on where and when action is necessary. An efficient tax resolution practice provides tangible results that are interpreted as success by the taxpayer.”

This article also served as a synopsis to a graduate level National Tax Practice Institute® (NTPI) course that he presented during the National Association of Enrolled Agents annual conference held in Las Vegas Aug. 1-3. “I encourage those in practice to consider approaching every case, from the easiest to the more complex and the ones engaged at the first sign of a liability to those who engage you much later on, in a way that ensures the taxpayer’s interests are protected and advanced in the most capable manner possible. This session covered the process for handling a collection case from start to resolution through the aid of a specific workflow. It is my goal that each practitioner will infuse their own personality, professionalism and style into a system after having a chance to take this course,” says Miles.

Want to read the full EA Journal article? No problem, click here.

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“Businesses facing difficult tax problems can be very vulnerable,” said Brian Biffle, president of 20/20 Tax Resolution. “Owners feel they need to react quickly but they are often worried about facing IRS penalties and can be unsure of tax policy regulations. The rush to solve the problem, combined with a lack of knowledge, can make identifying a qualified tax resolution provider a challenging process.”

However, there are many reputable professionals providing tax resolution services, Biffle said. The key is to identify one that is knowledgeable, diligent and will actually help solve tax problems.

“Many tax resolution companies work very hard to provide honest and effective counsel to their clients,” said Biffle, whose company has successfully managed tax issues for more than 26,000 clients nationwide as of April 2016. “But there are distinct warning signs business owners should recognize when searching for a provider.”

1. Overpromising – No tax consultant can guarantee results, whether those results include reducing tax liabilities or promising acceptance into the IRS Offer In Compromise program. If a company makes immediate guarantees with no information to back up its claims, it may be a sign to seek a different provider.
2. Lack of transparency – Every tax resolution provider should be comfortable delivering background information on their company in an upfront and easily understood manner. The provider should be able to discuss company ownership, years in service and past client successes. When they aren’t able to do so (or are unwilling to do so), a business owner should move on.
3. Demands for in-full payment upfront – As in any relationship with a professional services provider, trust is a key indicator of partnership. If a tax resolution provider wants to charge a fee just to speak with a consultant, you can end up paying an unlicensed salesperson to simply tell you what the company can do for you. Find a company that provides initial consultations completely free of charge.
4. Lack of credentialed consultants – A competent tax resolution provider will not utilize unlicensed commission-based sales people to provide a diagnosis of your tax issue. Remember that only a CPA, an attorney or an Enrolled Agent can represent you before the IRS. If your tax resolution provider is not offering you assistance through a seasoned, credentialed consultant, it’s a good sign the provider will not be working in the best interests of the business.
5. Unclear next steps – The provider should be able to discuss who will be managing the work, how often they’ll be in contact and what a business owner can expect with respect to ongoing reporting of progress. If these specifics are unclear, it’s a sign to walk away.

“These are the key indicators that should raise consumer concern,” Biffle said. “Of course, business owners should always use their best judgment, but as in so many aspects of business, if it feels too good to be true, it probably is.”

As a #SMB owner seeking tax resolution services, there are important warning signs… @2020TaxResInc
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In July of 2013, we submitted a proposal for an Installment Agreement in the amount of $300 per month to resolve the liability through what’s called a Partial Payment Installment Agreement. Although we knew that this agreement would need to be reviewed every two years, the taxpayer could not afford a larger monthly payment to meet the six-year rule so as to avoid the two-year review. After submission of our proposal, there was the normal back-and-forth of negotiations and collection of additional supporting documentation as well as awaiting the appeals process for the previously filed appeals.

During this time, we also had to deal with a Revenue Officer who was not playing by the rules and issuing erroneous levies. We were successful at getting these levies released based on the rules and regulations set forth in the Internal Revenue Manual (IRM), but all of these issues lead to a delay in obtaining a formal resolution.

By April of 2014, the business’ financial condition was only worsening. Things were even more dire than they were a year prior. This being the case, we decided to move forward with an Offer in Compromise on behalf of the business. The taxpayer was skeptical at first that we could work out an agreement of this type, but we discussed with him the new rules and regulations surrounding the Offer in Compromise based on the Fresh Start Program and showed him why his business qualified for the program. By October 2014, we completed the Offer in Compromise and sent it to the taxpayer for signature and to forward with the appropriate down payment and filing fee. Unfortunately, the taxpayer forgot to send in the Offer, delaying our efforts a bit longer. By February of 2015, the Offer was submitted and we were then tasked with awaiting an Offer Specialist to be assigned to the case. The Offer process is quite lengthy and can take up to two years before a formal determination is made on the case. After negotiations back and forth, we were finally successful at resolving this case through the Offer in Compromise program, compromising the liability for a total of $324 in February of 2016.

We were all very pleased with the final results and received this “thank you” from the taxpayer:

I wanted to write to you to say thank you for all the work that you did for me to help me resolve this tax issue. As you may remember, we had previously used another company, which charged us huge fees and did not advance the process of settling the debt. That company went bankrupt. I had mistakenly turned over all my documentation to that company. I lost all of it. That was an enormous error on my part. I trusted the wrong people. I also lost all my records, which made your job even more difficult. I, not only, lost my money to that company, I also found that the tax issues worsened. I was quite “gun-shy” when I hired your company. However, you were very patient with me throughout the process. I thank you so much for that. When you laid out my options, I could not have imagined that this would have been settled so fully and completely. It is like a breath of fresh air. So, I just wanted to thank you so much for your professionalism, diligence, and patience.”

As you can see, not all cases are cut and dry, and the IRS can be an extremely difficult entity to deal with. This being said, with proper representation, and maybe a little bit of patience, your case could be resolved just as completely as this one was. Get in touch with us today to learn more about how we can help with your particular situation.

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Whether the company’s line is true is not the point. Let’s assume for a moment the worst, that the payroll problem was related to the finances. Then, let’s take a moment to applaud them for making the responsible decision to hold the net payroll, temporarily, until all of the payrolls related obligations could be met.

A company’s ability to fulfill its payroll tax obligations has a direct impact on the company, the owner, investors and the employees. It affects the company’s very existence. The responsibility to collect and remit payroll taxes is statutory, required by law. The law states that a company has the burden to collect and remit payroll taxes from its employees when the employees are paid. Therefore, if payroll is delayed so is the obligation to remit the tax-related aspects of the payroll.

It goes without saying, but running a company with employees carries a host of responsibilities. After all, a company’s employees rely on it to provide for their general well-being. But, to a business owner, the importance of trust taxes, specifically payroll, cannot be overstated. Therefore, when beginning a new representation case, it is critical to introduce an educational component to the work. It’s imperative for clients to understand how to make good decisions in the face of financial distress. We understand that it’s certainly not easy to have a conversation with employees about a payroll being held. After all, those people are likely counting on it because of obligations of their own.  Nonetheless, this can be the correct decision in some cases.

Holding a payroll is not the only answer and in some cases can be the wrong answer to a tough spot. But compared with the fallout from missing a payroll tax deposit, such as an IRS levy, it can actually prevent a bad situation from getting much worse. Dealing with IRS Collections is about ensuring that a company facing duress survives for everyone involved over the long term. The questions about what to do and when make it vital to have a qualified and competent professional to lean on.

If you are a business owner and find yourself facing a payroll problem, make it a priority to give us a call today. The longer you wait, the more complicated and difficult your situation can become. If you happen to be a tax professional with a client who could use our assistance, either contact us directly or fill out our client referral form, here.

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Unfortunately, they couldn’t be more wrong and it’s usually a levy or lien that brings about the realization.  Yes, of course, voluntary payments are important to paying unpaid taxes.  In fact, they are the first thing I recommend in nearly every case, especially employment tax cases.  But to think that voluntary payments alone will alter the course of one’s case can be a huge miscalculation.  State and IRS collections are done by system.  They’re not whimsical or based on good faith.  Until a tax liability is paid in full or a formal resolution, such as installment agreement, is agreed to the collection process moves forward exposing taxpayers to liens and levies.

Just recently, in fact, I encountered this very situation.  A taxpayer came to me at the end of last year irate about being levied by the IRS.  The company owes the IRS just over 100k in employment taxes but the owner of the company had been making voluntary payments of $2,000 per month.  He hadn’t spoken with the IRS but had noted less mail was coming since beginning the voluntary payments.  He was angry that the levy followed his very obvious effort at resolving the situation.  Unfortunately, this taxpayer had assumed that his payments had directly influenced the IRS’ lack of urgency with his case.

Immediately, I began my effort of educating the taxpayer about the collection process. Most every state and definitely the IRS has a set protocol for collecting unpaid taxes. The process begins with notification of a balance due, letters with an increasing demand for payment and ultimately assignment to a field personnel for collection.  Every collection case goes through this protocol until the liability is paid or a collection determination is made.  A collection determination means the state or IRS’ decision on how the liability will be resolved.  A tax practitioner’s goal is to mold and influence that collection determination within the rules to their clients’ best interests.

The point here is that making voluntary payments, while advisable, does not alter the collection process.  Short of full paying the liability proactive and consistent contact with the authorities is not just recommended but required in order to ensure that a client remains protected from enforcement action.

If you find yourself in this situation, it is now more important than ever to get in contact with us. We are always here to answer any questions that you might have about your particular situation. Make it a point to contact us today so that we can get your life back on track.

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We’ve created this simple guide to help illustrate the various types of Installment Agreements that may be available to you depending on your particular situation.  Take a few minutes to better familiarize yourself with their differences — and remember, we are always here to help.

Learn more about ways we can help or feel free to contact us with any questions.

To download a high-resolution version of this infographic, please click here. 

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