Success Stories

Situation

A sole-proprietor landscaper had three years of unfiled returns and $87,000 in combined tax, penalties, and interest after IRS filed Substitutes for Return on his behalf. The SFRs significantly over-assessed his income by not accounting for business deductions.

What TaxWave Did

TaxWave filed the actual returns for all three years, reducing the assessed balance from $87,000 to $71,400. With a work truck ($8,000 equity), $1,200 in checking, and $300/month disposable income after IRS allowable expenses, the Reasonable Collection Potential came to $12,800. TaxWave submitted an OIC of $12,800.

Situation

A registered nurse discovered that her estranged husband had been underreporting his business income on their jointly filed returns for four years. She was unaware of the discrepancy and had no involvement in the business. The IRS assessed the full $42,000 jointly.

What TaxWave Did

TaxWave filed Form 8857 requesting relief under the equitable relief provision of IRC §6015(f). We documented her financial separation, lack of participation in the business finances, and the economic hardship that full assessment would cause given her income and her children's needs.

Situation

A restaurant owner had $110,000 in combined 941 payroll tax debt and income tax. The IRS initiated TFRP investigations against both the owner and a manager who had limited authority. Active IRS collection had begun.

What TaxWave Did

TaxWave immediately filed a POA and stopped active enforcement. We challenged the manager's TFRP on the grounds of limited signing authority — the investigation revealed he did not meet the 'responsible person' threshold. The owner's personal TFRP was settled through a personal OIC based on individual financials. A business installment agreement addressed the entity-level income tax balance.

Situation

A marketing consultant had $68,000 in IRS debt and $22,000 in California FTB debt from three years of underreported freelance income. Both agencies were in active collection status.

What TaxWave Did

TaxWave filed simultaneous POAs with IRS and FTB. First-Time Abatement at the IRS removed $9,400 in penalties. California FTB granted a first-offense penalty waiver removing $4,100. The remaining IRS balance qualified for a Partial Pay IA at $600/month (below full-pay threshold). The FTB balance was resolved via a 36-month installment agreement.

Situation

A retired schoolteacher on fixed Social Security income had $67,000 in IRS debt from her self-employment years. With $1,400/month in Social Security as her only income and allowable expenses exceeding that amount, she had zero disposable income. The oldest three years of debt had CSEDs approaching within 4 years.

What TaxWave Did

TaxWave established Currently Not Collectible status based on her financial hardship — monthly income below IRS national standards. With enforcement suspended, the three oldest years' balances (totaling $31,000) expired at their respective CSEDs. The remaining $36,000 was re-evaluated annually; she remained in CNC for 6 years while the remaining balances also expired.

Situation

A client with $54,000 in IRS debt had a federal tax lien that was blocking her mortgage application. Her debt-to-income ratio could support the payment; the lien itself was the obstacle.

What TaxWave Did

TaxWave entered her into a Direct Debit Installment Agreement and immediately filed for lien withdrawal under the Fresh Start program, which allows lien withdrawal when entering a DDIA for balances under $25,000 per tax period. The application was approved in 6 weeks.