Representative Cases

Disclaimer: The case studies provided on our website are intended to give readers an understanding of the services we offer and how we may be able to assist them. However, please note that the names and certain facts have been changed to protect the identities of our clients. The results shown in these case studies are not necessarily indicative of the results that may be achieved in any other case.

The Defunct Business & Payroll Tax Problems

defunct business oic penalty

As tax attorneys, we were approached by a small business owner and his spouse who were facing a significant payroll tax issue. The client owned multiple businesses, but one of them had become defunct and was only being held open pending resolution of the tax issue.

The problem was that the client had failed to pay payroll taxes for this defunct business, and as a result, the IRS had assigned a revenue officer to the case. The officer had even gone so far as to visit the client’s house to discuss the matter, including the potential imposition of a trust fund penalty. The IRS did end up imposing a trust fund penalty on the husband just before we took on the case, which resulted in significant personal liability.

The client was understandably concerned and overwhelmed by the situation, but we were able to assure them that we would work to find a resolution that was in their best interest.

After thoroughly reviewing the client’s financial situation, we determined that an Offer in Compromise (OIC) would be the best course of action. An OIC is a settlement offer made to the IRS that allows the taxpayer to pay less than the full amount of their tax liability.

We worked with the client to gather all the necessary financial documentation and submitted the OIC on their behalf. Then, we negotiated with the IRS on the client’s behalf to reach the lowest settlement amount possible.

The IRS accepted the OIC and the client was able to resolve their payroll tax issues for a fraction of the original amount owed. The client was relieved to have the matter resolved.

This case highlights the importance of seeking professional help when facing a tax issue, as well as the effectiveness of an Offer in Compromise in resolving such issues. As experienced tax attorneys, we were able to navigate the complex process and, with the right facts and circumstances, can often negotiate a favorable outcome for our clients.