IRS Trouble Solvers - April 2022


April Win of the Month Offer in Compromise

CASE SNAPSHOT Client: 1040 employee in over her head Type of IRS Issue: 1040 complications Tax Year in Question: 2012–2016 IRS Claimed Liability: $135,736.43 Savings: $130,168.43

In early 2020, a woman sought out our assistance with what she believed to be an IRS liability of approximately $70,000 for some unfiled tax returns for tax years 2012–

2015. As a 1040 employee, she unfortunately did not have enough withholdings taken from her paycheck and was late on filing. When she finally filed those returns, she faced a daunting tax liability, and she was in over her head — she needed our help. After pulling her Transcript of Accounts, our investigation revealed that due to additional unfiled tax years, her liability was significantly larger than we had thought. We took time to do a fine-tooth comb review of her financial situation, reviewed her assets and income, and decided upon a plan of action. Since


1 lb chicken breasts, sliced into 1-inch pieces

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Canola oil (for frying)

Corn tortillas

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2 tbsp garlic powder

Grated cheddar cheese Pico de gallo and guacamole salsa (to taste)

2 tbsp cumin

she had very little in assets and income and high expenses, we determined she was a candidate for an Offer in Compromise. Once we gathered the financial information, we submitted a $338 offer for the liability of $135,736.43. Unfortunately, the IRS returned the offer based upon a technicality — they claimed our client still needed to submit the return for 2015. However, due to our excellent research skills, we were

2 tbsp chipotle powder


1. In a mixing bowl, combine the chicken pieces, garlic powder, cumin, and chipotle powder. Mix until the chicken is coated. 2. In a frying pan, heat the oil. When the oil is hot, add the chicken mixture. Cook on medium heat for 5–8 minutes. 3. Remove the chicken from the pan, and add the corn tortillas (avoid overlapping) so they soak up the juices. Flip the tortillas and repeat. Then, add chicken and grated cheddar to each tortilla and fold it over the filling — in the pan. 4. Cook the tacos for 3 minutes per side until the tortillas are crispy and the cheese is melted. 5. Top with pico and guacamole salsa, and serve!

able to prove she was exempt from filing for the 2015 tax year. Thus, upon submitting the offer, the IRS came back with a counteroffer. They were willing to settle the $135,736.43 debt for $5,568! With almost 95% in savings, our client happily accepted the offer and is now free from her IRS debt (and careful to never allow herself to be in debt to the IRS again)!



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