Single individual taxpayer CC fails to file prior years tax returns and is assessed around $40,000 in back taxes. CC was previously an attorney and investor earning over $300,000 annually during better times. After several years of success, CC suffered a serious decline due to drug dependence, thereby causing her to lose her job, her position in the community, all her assets and remained almost solely dependent on family members for their help.
There was no doubt that CC owed the government around $40,000. The only problem is that CC had no assets to pay the debt, nor any known chance of ever obtaining enough monies to satisfy the debt given her current condition.
Through our help, CC was able to successfully enter into an offer-in-compromise with the IRS settling her $40,000 tax debt for less than $3,000. All tax liens were removed and the taxpayer was given a fresh start. CC’s only obligation was to remain current in her income tax filings and payments for a 5 year period thereafter. Shortly after settlement, CC filed suit against others for damages in an automobile accident and was awarded over $300,000 of which none of the proceeds were taxable or released to the IRS in satisfaction of her debt. Total professional fees approximated $3,000.