1-800-548-4639BC Tax worked with a client over the past 18 months to resolve a looming tax burden that the client was actively paying down from an Installment Agreement that was arranged many years ago. The strategy BC Tax used to remove this debt involved a statue where in the IRS has 10 years from the date you file your 1040 Income Tax Returns to collect the debt. In this specific case, as the 10 year collection statue neared the end, the IRS had pulled the Client’s case out of the Installment Agreement and requested updated financial information in an attempt to determine their collection potential on the remaining balance. This is fairly common as the IRS becomes more aggressive as they near the end of a collection statue in their attempts to collect a debt from taxpayers.
BC Tax provided the IRS an updated summary of the client’s financial status back in June 2019 and proceeded to call back monthly to check the status of the case. During a recent call to the IRS it was determined that the collection statues were indeed expired and a resolution was negotiated for the balances to be completely written off – saving the client $249,270.83 while also releasing all the Federal Tax liens in place (see images below).
Authored by the BC Tax Insights Team, this article reflects the collective expertise and experience of our seasoned tax professionals. The Insights Team at BC Tax comprises specialists with a deep understanding of various tax scenarios and solutions. With a focus on providing informative, accurate, and practical insights, our goal is to guide readers through the complexities of taxation and financial planning. Every piece is crafted with the intent to help individuals and businesses navigate the ever-evolving world of taxes, ensuring clarity and confidence in decision-making.
