Case Studies

Offer In Compromise - Juan

Over $18,000 in Debt With the IRS

The Situation

A referral from a financial advisor, this client had six years receiving the "Earned Income Credit" of which the taxpayer was not entitled to since his children lived in Mexico. Client was audited by the IRS and was accessed over $15,000 in tax liability. After all penalties and interest the taxpayer owed the IRS a little over $18,000.

The Solution

The solution to this customer became a little fo a challenge since the customer was not able to provide proof of residency in the United States for his children. After careful examination of his case, we came to the conclusion to ask for an offer in compromise with the IRS under the new "Fresh Start Program".

The Results

Customer qualify for an offer of $1,875.00 of which the IRS accepted. That saved the client a whooping $16,125.00; ten percent of the liability owed. See documents from IRS below.


Offer In Compromise - Raul

10 Years of Non-Filling Income Tax Returns With A Liability of $18,154.25.

The Situation

Raul came to Gonzalez & Company with the sole purpose of getting back on track with his tax reporting responsibilities. We help him achieve this goal but soon find out that he had a tax liability of $18,154.00 for those unfilled tax returns.

The Solution

After a careful examination of his assets and income, we concluded that low salary was not sufficient to support a family of 5 and still pay for the tax liability at hand. We inform that client that our best procedure was to make an offer to the IRS in order to acquire a fresh start.

The Results

We submitted the missing income tax returns and the offer- in-compromise. After 7 months of waiting we received the wonderful news of the IRS agreeing with our conclusion. With this new fresh start, Raul agrees to file his future returns on time and make all tax liability payments within their due dates.


Offer In Compromise - Lorena

Close to 100% Tax Liability Reduction. The IRS Does Not Allow an Offer for Zero Dollars, So We Made It for $100.00.

The Situation

Customer received over $8,000.00 on tax refund credits with the "First Time Home-Buyer Credit". Customer was audited and asked to provide proof of the home purchase of which she was unable to provide due to lost of proper documentation. She was accessed the $8,000.00 plus penalty and interest, along with other years of income tax liability, she end-up owing the IRS $18,754.25.

The Solution

Customer came to Gonzalez & Company for advise and after review of her current financial situation, she was advice to pursuit an Offer-In-Compromise (OIC). We prepared her missing 2012 returns in order for the customer to be in filling compliance and added the tax liability to the offer submitted.

The Results

After six months of waiting, the IRS accepted the offer with submitted for $100. That's as close as an OIC offer will get to 100% reduction.