Resolved: $72 Million Liability for Staffing Company Published May 20, 2022
Tax Guard successfully settled a combined $72 million IRS liability for a nationwide staffing company through an Offer in Compromise for $24 million. The staffing company, comprised of three separate entities, fell behind because of one of the partner’s questionable decisions, including taking out substantial high-interest MCA loans. The staffing company retained Tax Guard to negotiate a partial payment installment agreement. However, the IRS vehemently pushed back on the initial proposal, and insisted that levying bank accounts and receivables was in the government’s best interests. Despite the overwhelmingly negative response, Tax Guard recognized an opportunity for a different resolution during those initial discussions, an Offer in Compromise.
An Associate with Tax Guard:
- Prevented the IRS from levying the staffing company’s bank accounts and receivables,
- Identified and presented the Offer in Compromise as an alternative solution to the IRS, including the Territory Manager,
- Assisted in facilitating a relationship with an outside investor, approved by the IRS, to fund the Offer when the original plan to sell the business and pay the Offer amount with the proceeds from the sale fell through,
- Negotiated extremely favorable terms for the IRS Offer, and
- Preserved the funding relationship with the lender, who asked not to be identified.
“We worked with two different attorneys prior to retaining Tax Guard, but they weren’t able to help us,” said the business owner. “Instead, the IRS threatened to levy us out of existence. Thanks to Tax Guard, we were able to settle with the IRS for an amount we can afford. It’s our understanding that this is one of the largest debt reductions ever accepted by the IRS for an ongoing enterprise. Tax Guard saved our business and thousands of jobs.”
“Typically, Tax Guard negotiates an affordable installment agreement and secures a subordination of federal tax lien for our clients,” said the lender. “However, this was a unique situation. We really appreciate their experience and expertise, which allowed them to recognize an opportunity, pivot to a new strategy, and negotiate a resolution with an awesome result.”
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