Tax Guard Abates $200,000 in Penalties for Staffing Company Published March 18, 2020

A staffing company based in California recently turned to Tax Guard for assistance in resolving federal tax issues. Because of multiple hardships, including the business owner’s serious health problems and the unexpected loss of revenue from a high-volume client, the staffing company accrued a $900,000 federal tax liability and tried unsuccessfully to negotiate an Installment Agreement with the IRS on their own.

When the staffing company was referred to Tax Guard, a lien had already been filed and the business was unable to obtain factoring. After overcoming significant objections from the IRS, Tax Guard Associate Matt Lorenz was able to secure a favorable resolution for the staffing company, including:

  • Prevention of enforced collection (levies), which enabled the staffing company to begin factoring with Far West Capital.
  • New, manageable Installment Agreement terms with monthly payments of $15,000.
  • A subordination of federal tax lien to protect Far West Capital’s security interests.
  • Abatement of penalties of approximately $200,000 based on the IRS’s “reasonable cause” criteria.

“We would not be in business today if not for Tax Guard.  Matt was as vital as oxygen for our company,” the staffing company owner said. “Matt’s expertise and fantastic work helped us navigate our way to more favorable terms with the IRS, including removal of approximately $200,000 in penalties.”

“Matt worked tirelessly to get the IRS to lower the monthly installment payment. I know this helps our client more than anyone realizes,” said John Center, Vice President with Far West Capital.  “Matt was diligent from day one and kept us up to speed throughout the entire process.  Without Tax Guard’s involvement and transparency, we could not have entered into a lending relationship with a client we truly value.”

About Tax Guard

Tax Guard is the only company that monitors tax compliance and identifies tax risks before an IRS tax lien is filed. Its patent-pending due diligence and monthly monitoring processes identify businesses that have not paid or filed taxes on time and determine with pinpoint accuracy the level of risk to factors and asset-based lenders. When tax resolution is deemed necessary and advantageous to the factor or asset-based lender, Tax Guard’s superiority in this field allows the lender/client relationship to thrive for long-lasting benefit.

For information on Tax Guard call (303) 953-6325, or email Jason Peckham directly at or return to the homepage.

Posted By: Jason Peckham

As Vice President of Resolutions for Tax Guard, Jason is responsible for the tax resolution division of the company with an emphasis on preserving the funding relationships between commercial lenders and borrowers. Jason has spent the past 15 years as an attorney working directly with businesses resolving collection matters with the federal and state taxing authorities. As a regular contributor to industry journals and speaker on issues regarding IRS collection matters for commercial lenders, his expertise is highly sought out by lenders nationwide.