IRS Tax Help Comes in the Form of a Tax Installment Agreement

A health care client decided to come to Omni after they saw $32,000 in receivables levied. The capturing of these funds debilitated the client because they greatly depended on their receivables to provide home health care to those in financial hardships.

It was further explained to Omni that client had previously been a Partnership, but upon incorporating, a new EIN number had been issued. Medicare and Medicaid proceeds that were due to the Partnership were being paid to the Corporation when the IRS intercepted. The levy, although honored by the recipients, was for the EIN of the partnership. The partnership still owed the IRS $345,000.

Immediately following the turnover call, Omni filed a Power of Attorney and attempted to contact the Revenue Officer. When they reached the Revenue Officer’s voicemail, they learned that she would be out of the office for several months. Omni sent the client financial forms to complete in the interim, hoping a plan of action would be in place by the time the Revenue Officer returned.

Just prior to the Revenue Officer’s return, Omni received a request for information due from her stating “I hope you will be able to supply the following information during my time away from the office, which is the only opportunity the taxpayer will have to salvage their business from their failure to make federal tax deposits and comply with tax rules. I regret I will be unable to speak with you concerning this taxpayer sooner or provide you an extension.”

In addition to not being current with Federal Tax Deposits, the client also had years of missing returns. Omni soon collected all the information the Revenue Officer wanted and forwarded to her attention.

While though the client was now making Federal Tax Deposits, they began experiencing problems collecting their payments from Medicare and Medicaid. At this time, the Revenue Officer also issued a Final Notice of Intent to Levy. Omni appealed this notice, but, since the client was not current, Omni lost the appeal, and the client was levied again. While Omni tried repeatedly to get the client current, they could not overcome the issue of Medicare and Medicaid not paying.

The file has since been transferred to another Revenue Officer, and Omni successfully established an Installment Agreement of $1,000 per month on $450,000 of liability.

Is your business facing a levy or lien because of tax problems? Get immediate help with your IRS tax problems today.