or Small-Business Owners ORP, OR LLC geable Tax Liability
June Win of the Month A SCARY LIABILITY SOLVED!
CASE SNAPSHOT
Dollars spent on networking, search engine optimization, and even conferences can be written off. Your tax expert can help to ensure you don’t miss any items!
Client: South African Citizen With a Huge U.S. Tax Problem Type of IRS Issue: Personal Tax Audit Tax Year in Question: 2008, 2010–2012 IRS Claimed Liability: $528,515.38 Savings: $528,515.38
Health Insurance Premiums If you run a small business, you’re likely self-employed. The money you spend on health insurance premiums for you and your family can be deducted. To be sure you’re taking the correct deductions, again, get in touch with your trusted tax specialist.
Professional Services Do you have a bookkeeper for your small business? Did you hire an attorney last
There is no such thing as a cookie-cutter resolution case, and this case was no exception. Our client is a citizen of South Africa and worked in China on contract for a U.S.-based company. When the client first contacted IRS Trouble Solvers, he was burdened with numerous IRS notices and concerned about what would happen with the debt if he passed, as he didn’t want his heirs to be held responsible. Complicating things even more, he had a passport issue — the IRS will freeze your passport if you owe back taxes and don’t address them. He was confused about how his tax liability was so immense, and while he acknowledged he likely owed some of the liability, he was adamant that the amount owed was seriously overstated. In order to figure out why the IRS was claiming this extreme back tax liability, we conducted an investigation into the taxpayer’s IRS account. Upon review of the client’s Transcript of Accounts (TOAs), we realized there was an audit for the years in question that resulted in a large balance. Since he was working in China during the time of the audit and was unaware the audit was taking place, he had no idea what items were adjusted or why they were adjusted, resulting in significant tax added, along with penalties and interest. Using an unusual tactic, we submitted a Freedom of Information Act request (FOIA) to get a copy of the audit and the findings as submitted by the auditor. After doing a “fine-tooth” comb review of the audit, we realized that any time there was a cash transfer between bank accounts, the auditor counted anything labeled as a “transfer” as income. By the end of the audit, the IRS assessed more tax than the earned income for those years. After securing the bank records in question, we considered pursuing many options for this client (OIC-Doubt as to liability, OIC-Doubt as to collectability, audit reconsideration, PPIA, or OIC). By the end of the engagement, the IRS put the client in CNC-Due to Hardship. The passport was previously marked as “seriously delinquent,” and it has been confirmed the seriously delinquent status has been removed, and his Social Security is no longer being garnished. He is thankful he does not need to make payments toward the $528K and relieved to know the CSEDs will expire on Jan. 12, 2026, once and for all.
year? Did you rely on the expertise of an HR professional? Time-saving professional services can be pricey, but the great news is that these, too, can oftentimes be written off!
This tax season, don’t fear filing. Instead, prepare early and plan your contributions and deductions to ensure your tax liability is under control and manageable!
INGREDIENTS For the Marinade • 1 tbsp olive oil
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3/4 tsp smoked paprika
1/2 tsp salt For the Skewers •
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2 tbsp soy sauce
2 tbsp chili garlic sauce
2 lbs chicken breast, cut into bite-size cubes 1 small pineapple, cut into 1-inch cubes
2 tbsp rice vinegar
3 tbsp honey Juice of 1 lime
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DIRECTIONS
1. In a bowl, whisk together marinade ingredients. 2. In a reusable freezer bag, combine cubed chicken and all but 1/4 cup of the marinade. 3. Seal bag and massage marinade into the chicken. Chill in the fridge overnight. 4. The following day, preheat the grill to 400 F. Thread chicken and pineapple onto skewers, adding two cubes of chicken for each cube of pineapple. 5. Grill the skewers for 3–4 minutes per side, brushing with the reserved marinade in the final minutes. 6. Serve over rice or with your favorite barbecue sides!
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