Self-employed Man Gets $16,000 in Tax Relief
A self-employed contract typist began receiving notices around 2002 that he owed tax balances. He had known when he filed his returns that the money was due, but he simply had no ability to pay his taxes in full. When he first started receiving the notices, he got set up on an installment agreement of $250/month. Within months, however, he had missed his first payment and filed his 2003 Form 1040 with another balance due.
For several years after that, he never heard from the IRS, and hoped that if he failed to file the returns, they would leave him alone. In February, 2008, he finally enlisted the help of Omni Financial to assist because a tax agency had begun to levy his accounts.
Immediately after Omni got involved, they were able to suspend enforcement for two months. During that time, Omni agreed to complete and file all of his missing returns between 2004 and 2007, and remit financial documentation. The client had the returns prepared within a month.
Omni then prepared an Offer in Compromise. By September, an Offer Specialist had completed her initial review and responded with an Offer amount of approximately $7,500; much higher than the original $236.00 Omni had proposed. After several months of back and forth negotiations, Omni was able to prove that the client could only afford $2,456.
Unfortunately, one day after the paperwork had been sent out, the Offer Specialist called back and said a final search revealed a life insurance policy with a cash value. After speaking with the client, the Offer Specialist learned that his mother had made him the beneficiary of a small $10,000 policy in case she died. For years, she had paid the policy’s annual premium and never told the client about it.
Omni was able to obtain a copy of the most recent insurance statement and renegotiate an Offer of $6,802. After the fees to Omni of $2,000 and reduced debt, the client saved over $16,000.
Learn more about how Omni can offer IRS debt solutions.
