Case Results
Saved Clients $168,601 dollars in US Tax Court
The client received a tax liability notice of $162,601 due to additional income from a real estate sale. We contested this amount by filing a petition with the US Tax Court and presented substantial documentation related to the sale. Following our dispute, the client’s outstanding balance was reduced to $0.00.
PPP Fraud Case Resolved
After being investigated for a fraudulent PPP loan exceeding $800,000, the client’s status changed from a targeted person to a subject person following our discussion with the AUSA (Assistant States Attorney). As a result, the client will not be charged with receiving fraudulently PPP loan funds.
Tax Preparer's Criminal Investigation
Tax Preparer was under investigation for allegedly filing fraudulent tax returns. However, upon examining the tax preparer’s submitted returns and demonstrating to the IRS that no fraud occurred, and no due diligence penalties were applicable, we successfully requested the IRS to conclude the investigation and close the tax preparer’s case.
Due Diligence and Tax Preparer's Criminal Investigation
Tax Preparer was subject of a criminal investigation for allegedly preparing fraudulent tax returns and incurring a due diligence penalty of over $120,000. We investigated and discovered that the tax preparer was only responsible for data entry and had not filed or submitted any tax returns. As a result, the criminal investigation was closed, and the tax preparer was only assessed a due diligence penalty of $7,000.
Removal of a $151,127.19 Tax Lien for Client Misled by a Deceptive Tax Scheme
We successfully managed to remove a tax lien of $151,127.19 for our client.
In February 2015, the Client was unknowingly lured into a deceptive tax scheme. A friend introduced her to an advertisement by tax preparers, claiming she could receive refunds for the mortgage payments she had made. The tax preparers misled her, stating that her mortgage company owed her tax refunds for her mortgage payments.
Trusting these claims, the Client allowed the tax return promoters to prepare her 2014 tax return. Unbeknownst to her, she wasn't entitled to any such refund. Moreover, she was kept in the dark about a fraudulent 1099-MISC filed on her behalf. This false document displayed tax withholdings of $197,770 and additional income of $291,670 from the mortgage company.
We suspect the IRS was already aware of this deceitful scheme. They flagged the discrepancies, reassessed the tax return, and credited her with a modest corrective refund. While the IRS took action by canceling a refund of $110,457.01 on July 27, 2015, and rectified the erroneous withholding amount, they overlooked the false income declaration of $291,670. This oversight resulted in an unwarranted additional tax assessment of $86,617 against her.
It's crucial to note that the Client never received the aforementioned hefty refund, and the 1099-MISC was entirely fraudulent.
We advised the IRS of the oversight, and they removed the fraudulent 1099-MISC which made the client's tax liability $0.00 and the tax lien to be removed.
We remain committed to supporting and rectifying such injustices for our clients. Always ensure you are receiving advice from trustworthy sources, and if in doubt, please reach out to our team for guidance.
Protecting Client Interests: Saving Over $150,000 on Erroneous Employee Retention Credit (ERC) Claim
We recently had the opportunity to assist a business that was advised by another tax professional that they were eligible for an Employee Retention Credit (ERC) exceeding $150,000. Entrusted with the task of reviewing the details, we went over the tax returns submitted to the IRS as well as the payroll reports.
Our analysis revealed a discrepancy: the business did not qualify for the claimed ERC amount. We found that the previous tax professional had inflated wage figures, including wages that employees had not received.
Recognizing the potential financial implications for our client, we recommended that, considering his claim was still in review, he might be eligible to leverage the special withdrawal option. This move, once the IRS finalizes details, could potentially prevent the need for a substantial repayment.
We continuously strive to ensure our client's interests are protected. It underscores the importance of meticulous review and seeking trusted advice, especially when significant financial implications are at stake. If you're ever uncertain, don't hesitate to consult our team.
Successfully Appealed OIC, Saving Client Over $595,000
Initially facing a daunting tax liability of $609,750.12, our client sought to reduce its burden by filing an Offer in Compromise (OIC) for a mere $14,352.00. However, the IRS initially denied this OIC.
Determined to champion our client's case, we appealed this decision. Armed with compelling documentation, we demonstrated to the appeal officer that our client's company was genuinely unable to meet the hefty tax liability. After a rigorous appeal hearing, we successfully convinced the appeal officer to reconsider, and they approved the OIC at the proposed amount of $14,352.00.
This successful appeal resulted in an outstanding saving of $595,398.12 for our client. It is a testament to the value of diligence, robust documentation, and having the right team on your side. When faced with complex tax situations, always ensure you're equipped with expert guidance. Reach out to us for assistance
