Couple Benefits from Customized IRS Tax Debt Solution

A couple recently came to Omni requesting help with an Offer in Compromise. They owed over $143,000 in back taxes going back to 1993. The husband was retired, but his wife, who owned her own business, was not making estimated tax deposits. Because of this, the couple was accruing additional liability on their 1040 Income Tax Return. Omni prepared an Offer in Compromise for the couple that was eventually denied by the IRS.

Omni continued to work with the couple regarding estimated tax payments and filing and paying their taxes on time. The wife eventually put herself on payroll, taking out withholdings instead of writing herself a check and figuring out estimated tax deposits. By this time, the couple’s liability had grown to over $187,000.

Once the wife started taking a paycheck with the appropriate withholding, she came in compliance with the IRS. Since she was now in compliance, Omni could negotiate an Installment Agreement for $200 per month.

Thanks to this Installment Agreement, the clients will pay approximately $24,000 over the collection statute. With the current total of the liability at over $187,000, they will save over $163,000 in income taxes.

An Offer in Compromise isn’t always the best IRS debt solution. Set up your free IRS tax relief consultation to learn more about the right tax relief plan for you.