One Way We Have Helped Save Taxpayers Over $500MILLION Dollars – Old Couple Inherits a Business
- jessdowns9
- May 7
- 2 min read
Yeah, so I had the pleasure of helping out a 90 year-old couple who inherited a Corporation from their son, and kept receiving nasty-grams from the IRS about unpaid payroll taxes. The IRS was about to go ballistic and charge a Civil Penalty (which is 100% equal to the unpaid tax).
The poor couple had no idea what a Corporation does, what payroll tax is, but their Son made them shareholders in his business in 2018, when he started the Corporation. He died suddenly in 2019, and they were the only shareholders left, so they were legally responsible for making sure all filings and payments were made.
They relied heavily upon the tax person the Son already had a relationship with. But, 2020 happened when the 2019 taxes were to be resolved and the tax person they inherited left matters unresolved. After their desperate search for someone who knew how to help them out of this mess, they were pointed in my direction and I was very happy to be of assistance.
First, we addressed whether all of the tax returns were filed for the Corporation’s annual filing, as well as the payroll filings. The IRS had prepared and filed a Substitute for Return for the 2019 payroll and, since their Son was the only employee, we decided not to dispute it. However, we did get all of their Federal and State Corporate returns filed, associated taxes and penalties paid, and submitted our request to dissolve the entity with the State.
In the meantime, I worked with the IRS tirelessly for 9 months to: 1) make sure the Taxpayers’ accounts were not levied for the balance due, and 2) request abatement of the penalties that had accrued so far with all of the taxes. Requesting an abatement can be a simple idea, but it really is an art. I was able to convey this couple’s story to the IRS in such a way that the human being at the IRS who made the determination, waived everything – including the tax!!!
Although the IRS is not required to waive a penalty, they don’t ever waive it if they are not asked. We hoped for a reduction, and came away owing $0! The IRS legally could have insisted on the payment of the payroll tax, but chose not to. The outcome was quite miraculous and the little Old Couple were ecstatic!
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