Customer Problem:

What do you do if the IRS says you owe an obscene amount of money? While Todd was on the radio (KBPI) talking with Willie B regarding tax difficulties and offering answers to call in questions about IRS problems a person came into the station and explained, in person, and on air a situation he was experiencing.  He had gone through some really tough personal times, including not having a place to live, and was surviving on the streets.  He was just getting his life back together when all the sudden the IRS found him.  He opened the mail to find that he owed over $100,000 dollars!  He was confused about how he could owe that much. The amount was more than he had made in total over the past 7 years!

Advanced Tax Solutions Action:

Advanced Tax Solutions looked into the case for him and found a couple of things.  First, we determined that about half the amount due was attributable to penalties and interest!  We got a lot of comments when we read the IRS notice over the air on KBPI that showed the 10s of thousands of dollars in penalties!  Secondly, we found that the IRS showed a very large income on the tax return that the IRS had created for him since he hadn’t filed. The IRS can file for you if you don’t file for yourself, and in this case the amount they chose to say he made was ridiculous!

The interesting part of this is that when we requested the support to verify the income the IRS showed… they could NOT produce it!  They could not determine HOW they came up with the number!  We had to file a few different types of appeals:

  1. To stop the collection actions they were threatening
  2. Requesting attention to the discrepancies between what the IRS said he made and what they could prove he made
  3. Requesting help from the Tax Payer’s Advocates, due to the IRS not cooperating with us to provide the information we had requested.


In the end the IRS acknowledged that their mock return was incorrect and the protest return that we created for him was a more accurate reflection of his income.

Ultimately, the true balance due for all the years that were outstanding was about $3,000 including penalties and interest!  We set up a payment plan for $50 per month and our client was happy.  That’s an understatement if there ever was one!  When he came in to sign the final agreements with the IRS he howled and hooted and raised all kinds of commotion.  Sometimes that kind of relief is inexpressible joy, at least with words!  At the time of this printing we are working with him and also KBPI to set up a time to get back on the radio so he can tell his story on air!

If you have IRS Problems visit our site, connect with us on Facebook, or call for an appointment and let us help you today!  303-753-6040 Ex 293