TaxRise reduces a million-dollar IRS debt by over 99.99% and eliminates a $6,000 state liability.
October 14, 2020 – Clyde never dreamed that he would be a victim of IRS collections, let alone owe over a million dollars in tax debt.
As an NYU Engineering graduate, Clyde saw an opportunity to grow his career in real estate. Throughout the early 2000s, he invested in residential property across the United States until the 2008 housing bubble burst, sending his finances into a spiral.
When the market collapsed, he was forced to surrender his investment properties to the bank. This led to an initial tax bill of over $90,000, which Clyde was unable to pay. Eventually, the debt grew substantially due to monthly accumulating fees and penalties, exceeding one million dollars.
In addition, the IRS implemented aggressive collection actions, including garnishments and bank account levies. The situation became so severe that Clyde had to rely on friends for basic expenses after his bank accounts were frozen.
After an unsuccessful experience with one tax relief company that resulted in additional financial losses, Clyde spent several sleepless nights researching potential solutions.
“I stayed up nights, and I looked for all the information I could possibly gather to get me away from this. Because I know the IRS, they don’t stop. They just keep going and going and going. I had to find a way to stop them from doing this.”
Clyde, TaxRise Client
That’s when he reached out to TaxRise.
Desperate for help, Clyde signed up for their services only to be scammed out of thousands of dollars.
At a loss, Clyde decided to take the matter into his own hands. “I stayed up nights, and I looked for all the information I could possibly gather to get me away from this. Because I know the IRS, they don’t stop. They just keep going and going and going. I had to find a way to stop them from doing this.”
That’s when Clyde reached out to TaxRise.
TaxRise’s Resolution Strategy
After his previous experiences, Clyde was understandably wary of trusting another tax relief company, but he knew he needed professional assistance. So, he scheduled a free tax consultation with TaxRise.
TaxRise assessed Clyde’s case, which involved a federal tax debt of $1,097,338.89 and a state tax debt of approximately $8,000 owed to California. Given the substantial amount owed, the IRS scrutinized every aspect of the case with particular attention to detail.
“Whenever you have such a high liability, the IRS will do whatever it can to collect as much as it can.”
– TaxRise Senior Tax Attorney
However, our team knew that significant tax relief was possible. We accepted the case and immediately got to work on preparing his settlement offer. Although Clyde owed over a million dollars in tax debt, TaxRise built his case around the financial hardship he’s faced since the 2008 economic crisis.
The resolution process involved separate negotiations with federal and state tax authorities. The California case proved particularly challenging when the state agent attempted to expand the scope by requesting tax returns from 2000 and 2001, which would have increased Clyde’s liability by approximately $40,000.
Taxpayers are generally not legally required to submit tax filings from such distant prior years, so our experts fought back and renegotiated with the California-assigned agent.
Clyde’s state liability took months longer to negotiate than his federal debt. While the process was tedious at times, the TaxRise team remained persistent.
The End Result
In October 2020, Clyde’s IRS Offer in Compromise was accepted for $737! His $1,097,338.89 tax liability was settled for 0.0006% – saving over 99.99%.
But that wasn’t all for Clyde. A few months later, California conceded to our negotiations and completely eliminated his state liability.
“I didn’t pay anything! Not a dime.”
Clyde, TaxRise Client
See Clyde’s signed Offer in Compromise Below!
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* Client’s name changed for privacy.
