Offer-in-Compromise, accepted and settled!

The client was a self-employed performing artist that also did private music lessons on the side. Though he was following his passion, his income was barely enough to cover his living expenses and he was unable to pay his IRS and state taxes. Over time he owed what seemed like an insurmountable tax debt (over $75,000!) and it would be any minute he could face a wage garnishment or empty bank account from the IRS (or state). This is when he got in touch with Dickmann Tax Group.

Dickmann Tax Group immediately recognized the financial hardship the taxpayer was facing. They worked with him in order to bring his account into compliance (meaning no longer owing on a yearly basis), and prepared a financial hardship argument to the IRS in order to secure a tax debt settlement of $100 (yes, really $100, see the notice below). In the midst of negotiations, the pandemic hit, and the shut down. As a performing artist the client was left without a means of earning income. This further exacerbated his financial hardship, and he, like several others, was reliant on unemployment benefits as a means of financial survival.

While in negotiations with the IRS, the examining officer tried to claim that the unemployment benefits were an asset to the taxpayer, and denied the settlement proposal. Dickmann Tax Group knew better, and that the IRS COULD NOT claim unemployment benefits as an asset and filed an appeal against the denial. Through their negotiation efforts, Dickmann Tax Group was able to secure an acceptance of the settlement proposal, under the original terms presented, resulting in the client paying a fraction of the debt owed (saving over $75,000).

Obviously all tax situations are different, however we would be happy to discuss yours and let you know what settlement options are available if you want to talk? Click here to schedule time to talk.