Client Settles $1.5 Million in Debt Through Offers in Compromise

A recent Omni Financial client started a high-tech company in Silicon Valley in the late 1990s during the economic boom. However, when the market crashed, so did his business. The client lost everything including his home, cars, and reputation. He accrued over $3 million in Internal Revenue Service liability and $365,000 in California Employment Development Department (EDD) liability.

In addition to his company’s liability, the client was also personally liable for $300,000 in debt to the EDD and $1.2 million to the IRS. These tax liabilities had caused his wife to see a psychiatrist to manage the stress of the $1.5 million cumulative liabilities hanging over their heads.

During the client’s two-year tax struggle and hiatus from employment, his wife was diagnosed with breast cancer. Because they had no health insurance, extensive medical treatment had to be put off for over a year. Motivated by his wife’s deteriorating condition, the client found funding for a new company. That company is now growing, and is landing significant contracts with companies such as Hewlett Packard.

Omni was finally able to reach an Offer in Compromise for $46,000 with the EDD and is negotiating a $50,000 Offer with the IRS. Upon hearing about Omni’s successes, the client’s wife was so relieved that her visits to the psychiatrist were reduced dramatically.

Contact us today for IRS help if you are struggling with back taxes.