$1.7M IRS Payroll Tax Debt Settled for $65k
This business owner ran a profitable, electrical service contracting business in DFW. He took on a large project for new construction for the Forth Worth Independent School District. Unfortunately, the city changed the code after the majority of the work was completed. This business owner was unable to make the changes required to the code and lost the contract. He could not timely pay his business payroll taxes, resulting in cascading interest and penalties.
Payroll tax debt is NOT dischargeable in bankruptcy, so a bankruptcy firm referred us the case. The IRS was planning to submit the case to the Department of Justice to give the IRS another 20 years to chase the business owner. To avoid this outcome, we submitted a settlement offer within one week of receiving the case, successfully reducing the debt from $1.7M to $65k.