CASE STUDIES

Case Study 1
Robert F., 70 years old had severe medical issues when he contacted STR and when the IRS started collection actions against him, he could barely afford to pay for his high medical expenses since both Robert and his spouse were dealing with diabetes. He also had one of his legs amputated due to diabetes. His total tax liability was over $70,000. He receives a small disability and pension check. Learning about the hardship they were going through, our Tax Practitioner presented the situation to the IRS. Tax Practitioner negotiated with the IRS to have our client's account placed on Currently Non-Collectible status immediately. The IRS promised to cease all collections against him and his spouse.

Case Study 2
Rhunnett N. was facing a wage levy when she first contacted STR. She had a personal tax liability of $60,000 accumulated from 1994 to 2005. After reviewing our client's and her spouse's financials, it is clear that they can afford to pay a sum of money per month to the IRS. However, when our Tax Practitioner did a financial investigation, they found out that our client's spouse filed Head of household and did not claim his two children. Hence, our tax Practitioner only presented our client's financials to the IRS and with that, although she could still pay close to $150 per month, we were able to place her on Currently Non-Collectible (CNC) status immediately.

Case Study 3
Phillip D. had a Federal Tax liability of $35,187. Through our thorough financial analysis, we found out that his total gross monthly household income was $7423. Based on his financial situation, he will not qualify for an Offer in Compromise. However, Phillip had no ability to pay his liability in full either. We analyzed his financial standing which was crucial in establishing an Installment agreement since he had such a high gross income. Taxpayer's financials showed an ability to pay $2592 per month after taking into consideration all expenses. After much negotiation with the Internal Revenue Service, we manage to reduce the installment payment from $2592 to $1000. This is a savings of almost $1600 per month. He is elated that we managed to established such an affordable plan for him.

Case Study 4
John C. had a liability of over $45,000. The IRS issued a bank levy which caused severe hardship to our client. His entire Social Security Check was levied and he only had his wife’s Social security income left for the month. We contacted the IRS at once, presented our client's financial situation. Without any substantiation, that our client was going to be evicted from his residence, we successfully managed to release the bank levy.

Case Study 5
Jorge M. contacted us after facing visits from the IRS and dealing with his Revenue Officer. After completing a financial investigation with the IRS, we found out that our client had not filed since 1999 and has a tax balance of over $191,000. This high balance was incurred as a result of Substitute for Returns (SFR). We helped this client re-file his tax returns and as a result, our client ended up not owing the IRS anything. Our Tax Practitioner, through various conference, presented the facts to our client's Revenue Officer and subsequently manage to release the levy and had the lien removed from his property.

Offer in Compromise Case Study Examples