Our valued client operated a large manufacturing plant which specialized in food products. The company had more than 200 employees and a large payroll. The client initially handled their own bookkeeping internally, and erroneously paid their 941 federal taxes on the wrong deposit schedule for over a year. This turned out to be a costly mistake, as the IRS penalized this business more than $400K! Can you believe it, my client paid their taxes, just on the wrong day of the month, and the IRS assessed more than $400K in penalties!
To make matters worse, the case was assigned to a difficult IRS agent who refused to waive penalties and was demanding full payment of the penalties. The IRS agent was threatening to issue levies to bank accounts and accounts receivable to collect the balance due. Levies would have forced my client out of business, as they had strict labor practices they had to follow with payment of their union employees. Imagine, if the IRS agent had their way, they would have wiped out the client’s bank account, leaving the company unable to pay their employees!
Tax debt professionals from 20/20 Tax Resolution worked hard to successfully negotiate a hold on collection to prevent any levies from being issued. We took the case to IRS Appeals and I was successful in negotiating an abatement of all penalties assessed by the IRS. I convinced the IRS Appeals officer to waive more than $400K in penalties, which cleared the tax debt off the books and closed the case. My client was able to continue on in business without fear of enforcement or having to pay excessive IRS penalties.