A minister came to me with a Notice of Deficiency. As the result of a correspondence audit for a single year, the IRS wanted about $40,000. They had disallowed his parsonage, and imposed self-employment tax on his earnings. After serving Discovery on the IRS during the related Tax Court proceeding, they conceded the case. Not only did they allow his parsonage, concede that he wasn’t liable for SE tax (because he had opted out decades ago) but they admitted they owed him a $480 refund.
A man was swindled in a movie investment scheme. By way of an advanced and complicated con involving two movie production companies, prospectuses, stock certificates, and cash transfers, some tens of thousands of dollars were stolen from him. The final screw job was that the thieves issued worthless stock certificates a Form 1099 to the victim reporting taxable money paid to him. The IRS issued a Notice of Deficiency when the victim failed to report this “income.” After I sent a detailed memorandum of law to the IRS Office of Appeals related to cost basis, the fair market value of property received in lieu of cash, and worthless securities losses, they conceded the case.
A corporation had a $100K plus ordinary and necessary business deduction disallowed in and audit. The IRS wanted $50,000. The $100K had actually been lost due to a check kiting scheme, and the money had been stolen. After the IRS received my theft loss memorandum of law, the Office of Appeals conceded the case.
Foolishly, the client represented himself at the audit of his rental property activity. The IRS disallowed 90% of his deductions and imposed 20% penalties for each of the three years audited. At the IRS trial level, the IRS accepted our settlement proposal and waived all the penalties.
This case came to me after the audit for one year was over and the IRS had already collected the alleged amount due. They had disallowed the client’s maintenance (alimony) deduction for lack of substantiation, because the client had not responded fast enough and did not file a Tax Court petition (slept on his rights). By the time I had the case, an audit of a subsequent year had begun. Once the IRS received my responses, not only did the IRS concede the year currently under audit, but they reversed the prior year’s audit findings and refunded the money they had collected.
The client had several employment tax issues, such as incorrect Forms W-2, and Forms 941 and 940. He had mistakenly reported wages paid to persons that were not employees (contractors) and his books were a mess. After correcting his reporting, which included amending employment tax returns with the IRS, correcting Forms W-2 and W-3 with the SSA, and defending a Notice of Deficiency in Tax Court, the client got about a $17,000 refund.
I got the case after the client had been to federal prison for income tax evasion. After prison the client got a tax bill for over $300,000. After the IRS rejected his $18,000 offer-in-compromise, I got him a $50 a month ($600 a year) payment agreement.
I got this case after the clients’ prior attorney submitted an offer-in-compromise. The offer had been rejected and was languishing in the Office of Appeals for years. One of the problems the IRS had with the case was that the clients had an interest in a vast amount of real estate, and eight different businesses. After combing through a slew of deeds, mortgages, income and expense reports, and bank accounts, I got the IRS to accept the offer, which saved the clients about $250,000.
A client got severely injured in a terrible fall. He was so depressed that he gambled away all of his retirement savings, which resulted in large IRS and New York State tax debts. After a significant battle with the IRS, I got them to withhold the levy they had proposed on his meager SSA benefits. Furthermore, I got both agencies to place his case in currently not collectable status.
The clients came to me after an IRS officer went to their house and informed them that a notice of lien was going to be filed and they faced further possible enforced collection action. The couples’ were at risk of losing their home because to the lien. After a detailed legal analysis, I determined that they should file a chapter 13 bankruptcy immediately. The next day they did and saved their home, while the court approved an affordable repayment plan.
A $200,000 tax bill turns into a $45,000 tax refund and thousands in future tax savings. The IRS prepared a substitute return for that didn’t include all deductions. Suffice it to say, the IRS alleged that client owed $200K. They began to garnish his income in 2009 and took $60K over four years directly out of client’s salary. It was discovered that he was entitled to capital loss carry forwards, those loss carry forwards are going to save him thousands of dollars in taxes in the future.