There is nothing that will shock you and make you feel helpless as receiving a notice from the IRS that says something like "you failed to file your tax return so we filed a tax return for you and by the way, you now owe us $400,000 in taxes, penalties and interest." How and why does a taxpayer even receive such a notice?
There are several reasons why a taxpayer could receive such notice. First is that they have not filed a tax return for one or more years. The Internal Revenue Service (IRS) received income documents (W-2's, 1099's, etc) from third parties indicating that income was paid to the taxpayer. When the IRS went looking for a tax return to match the income documents, there was no tax return on record. There can be any number of reasons why a tax return was not filed. The reason is not important to the IRS. The IRS is just looking for a tax return. When the tax return is not filed the IRS has the statutory authority to file a substitute tax return on behalf of the taxpayer with the information they have. That is happened with the client who received a $400,000 tax bill from the IRS and a $35,000 tax bill from the state.
How did we get this $400,000 tax bill reduced to $0? After meeting with the taxpayer, we decided on a course of action that would help the taxpayer to reduce the debt. At the time I did not know for sure how much of the tax debt we could reduce. After implementing the agreed upon solution, we very pleased when we received letters stating that the federal tax is reduced to $0 and the state tax is reduced to $0. This is a case where the taxpayer qualified to have the tax debt reduced. I cannot guaranteed this result for every client. What I can guarantee is that we will work very hard so your feelings of worthlessness and overwhelming worry will instead become confidence and thankfulness that the dark cloud the of the IRS taking your hard earned is gone.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
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