Case Study: Decreased Taxes by $50,000

Decreased Taxes by $50,000

TBS Facility Services Group LLC earned over $12 million dollars since inception and there was a tax debt of over $120,000 which the CEO was unable to pay. The business activity reduced over the years but the large tax bill still loomed. IRS began levying and collection enforcement against the business and CEO. Tasha was unable to pay them and was struggling to find the right help.

Outcome:

When preparing the business tax return we implemented tax savings strategies that resulted in an overall loss in the business. These losses where used to reduced the CEO’s personal taxable income which resulted in a $30,000 refund which was applied to the $120,000 debt.

We engaged with IRS to place the account on CNC status (currently non collectible) which resulted in IRS stopping all enforcement collection activity.

With the tax law changes passed in the CARES Act, we were able to file a carryback of the remaining business losses to the years where the tax remained outstanding. Thus resulting in a decrease of taxes in 2016 & 2017 of $50,000 and $40,000, respectively. IRS SENT Tasha a REFUND check for $2,711. The business taxes where COMPLETELY wiped out.

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