Brothers Settle Over $500,000 in Back Taxes through Offer in Compromise
Two brothers, who owned a company together, became a client of Omni Financial in October 2000. The brothers’ company grew, and they became the largest employers of the town. They were very active in supporting their community through projects and fundraisers.
However, their company began having tax troubles when their state refused to pay them $750,000.00 following the completion of a year-long project. This liability cost the brothers not only their business but more importantly, their family farm and their relationship. Due to their status in the town, this became an overwhelmingly embarrassing problem for both brothers.
In 2004 Omni successfully negotiated an Offer in Compromise for one brother, but it was not until January of 2009 that they were able to resolve the other brother’s tax liabilities.
The second brother ended up having to move 150 miles away from his wife to find employment. When Omni first submitted an Offer in Compromise on his behalf, the IRS would not allow expenses related to his apartment near work and the 300-mile weekend commute to be with his wife.
After Omni spent two years gathering federal documentation on allowable mileage and information pertaining to a second residence required for working, the IRS began working towards settling the $542,000 trust fund liability.
The IRS then went after the only asset the client and his wife had – their house. Due to the small size of the town, however, it became virtually impossible to sell the house. This was also the last of the assets the client and his wife owned after losing everything when the business was forced to close.
Following a year and a half of strenuous negotiations with both the Offer Examiner and the Appeals Officer, Omni successfully negotiated an Offer of $60,000. Due to the client’s reputation in his town, and his past charities in the community, the bank offered to refinance his home for more than it is worth. With the IRS behind them, the two brothers hope to mend their relationship and once again work together to serve their town.
Contact us today to find out if you could qualify for tax relief through an Offer in Compromise.
