IRS Trouble Solvers - February 2023

ORP, OR LLC

WIN OF THE MONTH If at First You Don’t Succeed, Try, Try Again CASE SNAPSHOT Client: California Resident With a Business in Nevada Type of IRS Issue: Payroll and Business Income Taxes Tax Year in Question: 2018 IRS Claimed Liability: $39,834.18 Savings: $32,904.69 This client came to us under audit by the IRS for the tax year of 2018. The client had inherited a mobile home park in Nevada but was a resident of California. After filing his personal taxes, he received notice that the IRS audited the Schedule C document used to report an income or a loss from a business he operated. The IRS auditor, located in San Diego, California, was not interested in taking on the case and requested it be moved to Nevada. The auditor was pushing to have the Assessment Statute Expiration Date extended and essentially refused to discuss the case with our practitioner until we had the Assessment Statute Expiration Date (ASED) signed, thus the audit could not be moved to the state of Nevada. Here at IRS Trouble Solvers, we did not sign the extension, and the auditor kept the case. She sent the proposed changes (unchanged) eight months after our first contact and document submission. We escalated to the manager, who said the auditor’s caseload was high and just made excuses for the auditor’s lack of communication and hostile manners. We decided filing an appeal was the best option for our client. Among other things, the original auditor disallowed management fees paid to a C-Corp that were reported as income by the C-Corp. We successfully appealed the disallowances and saved the client 82.6% of the previously assessed taxes.

Once an offer in compromise is set into motion, the taxpayer must remain compliant for five years. This means taxes must be filed and paid on time, and all payments on the offer in compromise must also be made on time. Lastly, for those five years, any refunds received will be automatically paid to the IRS to be put toward the incurred liability. Suppose during those five years, the individual fails to do any of the above. In that case, the IRS will revoke the offer in compromise, and all the previous liability will be reapplied (less the payments already applied), plus interest and penalties.

But if an individual meets all these qualifications, the results can be astronomical and life- changing! For more information on an offer in compromise and to see if you’re a candidate, give us a call today — we are ready to help!

INGREDIENTS

9 oz high-quality semisweet chocolate, chopped 1 1/2 cups whole milk 1 1/2 cups heavy cream, divided

5 tbsp granulated sugar (add an extra tbsp if using bitter chocolate)

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1/4 tsp salt

1 tbsp powdered sugar

6 large egg yolks

DIRECTIONS

1. Place chopped chocolate into a blender. 2. In a heavy-bottomed medium saucepan, whisk the milk, 1 cup of cream, egg yolks, granulated sugar, and salt over medium heat. Cook, constantly stirring with a spatula until the mixture is almost boiling, 5–6 minutes. Immediately pour the milk mixture over the chocolate in the blender. 3. Cover and blend until smooth. 4. Divide the mixture among ramekins or small cups and refrigerate until set (about 2 hours). 5. Whip the remaining 1/2 cup cream and the powdered sugar with a mixer until soft peaks form. 6. Top chilled pots de creme with whipped cream and serve.

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