K&K Tax Group offers transparency to our clients, helping them understand the
process for resolving tax debt so they have realistic expectations for
solving their specific tax problems. Our role is to negotiate the lowest
possible IRS payment amount allowed by law, and we will not allow a
client to retain our firms' services unless the taxpayer is a legitimate
candidate for tax relief.
Below is a representative sample of some of our recent tax debt settlements, including our audit results, offers in compromise, partial
pay installment agreements, innocent spouse cases and statute of
limitation cases. These are the kinds of results taxpayers can expect if
they qualify for our services AND follow our direction/advice all the
way through to the end (resolution).
Taxpayer # 1 retained our services after he received a notice of Federal Tax Lien filing for $47K on his primary residence. He owed the IRS about $52K due to non payment of estimated taxes on his 1099 (independent contractor) earnings of about $120K for 2008. Taxpayer informed us that he was not able to keep up with the estimated tax filings in 2008 due to the fact that his spouse was undergoing medical treatment for a severe medical condition during that time. However, the taxpayer lost his contract in 2009 and was making less than 20K per year and had no substantial assets that could be sold to payoff his tax obligations. We were able to get him an OIC settlement for about $4K.
Taxpayer # 2 owed the IRS about $13K including penalties and interest due to improper tax returns filed for 2006 and 2007. The taxpayer did not have the capacity to payoff the amount of tax debt due to his current obligations and income. Initially, he retained another tax resolution firm to file an OIC for about $2K, which was rejected by the IRS. Taxpayer retained our services to appeal the OIC decision. We were able to get him a settlement of about $5K by filing an appeal.
Taxpayer # 3 retained our services after his bank account was levied due to unpaid taxes of about $47K. We examined the tax returns in question and determined that the taxpayer had sold some assets which were never accounted for in his tax returns. As such, the IRS was taxing him on the sales price of those assets without adjusting the cost basis. We were able to get the taxpayer's bank levy released and tax liability down to about $18K after filing amended tax returns.
Taxpayer # 4 retained our services after she received a notice of intent to levy for unpaid taxes of about 13K. Upon further investigation, we determined that the statue of limitations had expired for part of the tax debt and the taxpayer was eligible for relief. We were able to get the amount of tax due down to about 8K.
Taxpayer # 5 retained our services after the IRS disallowed her certain deductions on her schedule C. Taxpayer worked as a freelance architect with operations based in three different locations within the same city. We petitioned to the Tax Court after the taxpayer received a "notice of deficiency" for about $33K and were able to get her case kicked back to the IRS, eventually proving our point based on evidence. The IRS allowed 95% of the deductions what were previously disallowed.
Taxpayer # 6 was facing collection activity when he contacted our firm. He had Sec 1231 exchanges which were not properly accounted for in his tax returns for 2007 and 2008. We were able to identify the exchanges and filed amended tax returns which reduced his tax liability to nil.
Taxpayer # 7 retained our services due to trust fund penalty issues. Taxpayer owned a mortgage company that went out of business in 2008 and, as a result, the taxpayer was considered liable (responsible party) for unpaid payroll taxes by the IRS. We filed an OIC for his $247K liability and were able to get him a settlement for $87K (payable over a period of five years).
Taxpayer # 8 retained our services after the IRS started collection activity due to a tax controversy matter involving her estate, claiming that the taxpayer owed an additional $54K. Her estate tax returns under reported significant income and deductions for tax years 2004 to 2006. We were able to reduce her tax liability to $3K by filing amended tax returns.
Taxpayer # 9 was a corporate entity that had about $127K in tax liability due to the IRS disallowing certain deductions on the 1120. Based on our research, the deductions were appropriate due to the nature of business of the corporation. The matter had to be taken to tax court. However, we were eventually able to get the IRS to allow about 65% of the disallowed deductions which reduced the corporation's tax liability to about $74K.
Taxpayer # 10 had recently filed for bankruptcy and most of his debts were discharged, however he was still liable for unpaid tax debt since it did not qualify for inclusion in the bankruptcy. We filed an OIC, eventually settling for about $2K.