Tax Guard Successfully Resolves $7.3mm Federal Tax Liability Published March 18, 2020
Tax Guard successfully resolved an IRS liability of $7.3 million for a Gulf Coast electrical contracting company. The business fell behind due to a combination of unpaid invoices and embezzlement. Despite these struggles, the business was able to become current with federal tax deposits. The revenue officer assigned to the case was part of the Abusive Tax Avoidance Transactions (ATAT) group, extremely aggressive, and had levied bank accounts and receivables prior to Tax Guard’s involvement. Additionally, the revenue officer insisted on a payment of $100,000 per month, which the business could not afford. Steve Uhl (Associate, Tax Guard) successfully:
- On appeal, secured the release of 18 levies on bank accounts and accounts receivable,
- Prevented the IRS from levying bank accounts and accounts receivable,
- Addressed the concerns of the ATAT revenue officer and prevented a referral to the IRS’s criminal investigation division,
- Negotiated an installment agreement with a payment of $20,000 per month for the first year with an increase to $40,000 thereafter based on the business’s ability to pay, which is affordable and much less than the revenue officer’s original request for a payment of $100,000 per month, and
- The payment of $20,000 per month constitutes a partial payment installment agreement (PPIA), which the IRS acknowledges “will not fully satisfy the liability” and positions the business to pay approximately $4.5 million over the statute of limitations.
“There was no way we could afford a payment of $100,000 per month,” said the business owner. “But our revenue officer was really aggressive and would not consider anything else. Steve fought like hell to go above the revenue officer, working with managers and appeals officers to protect us and get a deal done. He secured releases on the levies of our receivables, then negotiated a comfortable monthly payment of $20,000, which ultimately saved our business. We made the mistake of hiring another tax resolution company first, which was a waste of money. I wish we would have been introduced to Tax Guard and Steve much earlier.”
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.