Resolved: $670K Liability for Staffing Company Published February 19, 2021
Tax Guard successfully resolved an IRS liability of $670,000 for a nation-wide staffing company by negotiating a lien-deferred installment agreement with a payment of $4,000 per month. As a result, the business was able to continue funding with LSQ Group LLC. The staffing company initially fell behind due to several slow paying receivables. Despite returning to compliance, the revenue officer assigned to the case, part of the Abusive Tax Avoidance Transactions (ATAT) group, pressed for an aggressive repayment plan and initially requested installment payments of $10,000 per month.
A Tax Guard Associate successfully:
- Prevented the IRS from levying bank accounts and accounts receivable,
- Negotiated an installment agreement with a monthly payment of $4,000 based on the business’s ability to pay,
- The payment of $4,000 per month constitutes a partial payment installment agreement (PPIA), which the IRS acknowledges “will not fully satisfy the liability” and puts the business in a position to repay approximately $480,000 over the statute of limitations for collection (approximately ten years),
- Convinced the IRS to defer filing the federal tax lien, thereby protecting LSQ Group LLC and preserving the funding relationship.
“My revenue officer was aggressive and repeatedly threatened to file a federal tax lien,” said the business owner. “Our Tax Guard associate spoke the IRS’s language. He explained to the revenue officer how the federal tax lien would negatively affect my funding, negotiated several extensions for providing information, prevented the federal tax lien from being filed, and ultimately secured an installment agreement with a payment I know I can afford. I couldn’t have done that on my own.”
“We appreciate Tax Guard’s expertise – not only can they address the IRS liability, but they also take into consideration our concerns,” said Sara Kramer, Portfolio Manager at LSQ. “We know the IRS typically files a federal tax lien, which is why we really appreciate their efforts here. Because his recommended solution convinced the revenue officer not to file a federal tax lien, we can continue funding a valued client without the need for a subordination of federal tax lien, which is an unusual outcome and a big win for everyone.”
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