Just got off the phone with a gentleman in Illinois...
He and his accountant had negotiated with the IRS a $1550 month payment plan with the IRS on his $78,000 tax debt. Not an attractive solution. But based on his ability to pay the IRS -- it was probably the best temporary solution to resolve the issue. His annual income of $95,000 living in the Midwest basically disqualified him from an Offer in Compromise. However, based on his recent divorce he had a good case for getting the penalties off. We also spoke with him about Bankruptcy Chapter 13 as a viable solution as it would generate a payment plan that would also pay his credit card and other debts.
Chapter 13 aside -- the only angle we saw as viable for him was he and his ex-wife to come up with $28,000 and bring the debt below $50,000 to streamline levels Link to $50,000 rule..and to get him a payment plan of $700 on the final balance - a big improvement on the $1550 a month -- and then go for the penalty abatement down the road.
Washington Tax would charge him a fee of $1500 to accomplish all of the above and also take Power of Attorney for the ex-wife - as long as there was no conflict of interest. Pretty simple.
Blue Tax of Los Angeles now famous for their animated tax TV ads...charged this guy $8500.00 to represent him on the case. They would have to pull off a huge miracle to justify that fee.
