Omni Helps Widow Save $311,000
When an aging couple hired Omni, they had accrued a federal tax liability of over $138,000. The clients were near seventy years of age and had significant health problems. However, due to the enforced collection efforts by the IRS they had to continue to work in order to pay their tax liability. The combination of overworking and health complications drove the husband to be hospitalized on more than one occasion. His long list of medical conditions consisted of congestive heart failure, chronic rheumatoid arthritis, renal failure, diabetes, glaucoma, cirrhosis of the liver, emphysema, diverticulitis, and skin cancer. While he was hospitalized, the IRS continued to enforce collection action.
When Omni tried to submit an Offer In Compromise, it was rejected because the husband failed to file his income tax return for that year. After the disappointment, Omni decided to buy the taxpayer more time and come up with another resolution strategy.
Sadly, the health complications caught up with him and the husband finally passed away. His wife, despite her grief, tried to keep the consulting business open, but was unable to make it profitable. She closed the business and moved to Kentucky where she could be close to her daughter. At that time, she was only living on Social Security and a small pension. Omni worked with her to make sure all income tax returns were filed timely. After a year of compliance, Omni decided that it was a good time to re-submit the Offer In Compromise.
In a span of seven years, the client’s federal tax liability increased from $138,000 when she hired Omni, to $264,000 when the second Offer in Compromise was offered. The second Offer was for $250, which the IRS countered with $30,000. Omni negotiated with the IRS by filing appeals and providing additional documentation, but the second Offer was finally rejected.
After discussing the case with the client, Omni decided to submit one final Offer. By this time, her liability had increased to $327,000. Through continuous negotiations and numerous appeals hearings, Omni was able to reduce the accepted Offer amount from $30,000 to $16,500, a total savings of nearly $311,000.
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