Results Achieved By Ellsworth Law Group
Our clients were the owners of a closely held Subchapter S corporation. After an audit the IRS claimed that the distributions they received exceeded the basis in their common stock, and therefore claimed a tax deficiency of $350,000 per year in a multi-year period. The case was referred to our firm by a tax attorney who had spent over three years negotiating with the IRS, without achieving a settlement. Our firm negotiated a settlement with the IRS that saved our clients $375,000 in tax, penalty and interest.
Our client was the owner of a mortgage brokerage that went out of business with the disastrous real estate market. The IRS came after the owner after the company was unable to catch up overdue payroll taxes. The owner disappeared so the IRS came after our client, the CEO.
Result: We negotiated a $14,000 offer in compromise with the IRS in settlement of $120,000 in payroll taxes. Our client has started a new company and is today keeping up with all tax obligations as they become due.
Our clients were three physicians, equal owners of their medical partnership. The IRS disallowed approximately $450,000 of setting-up expenses and began collection efforts for over $100,00 in back taxes.
Result: We filed a petition for reconsideration and the case eventually settled for $5,000.
Our client owed income taxes to the IRS for 6 years totaling over $161,000.
Result: The IRS accepted an offer in compromise for $32,264.
Our client was an auto parts business that underwent an audit for 3 of the last three tax years. The IRS’ claimed that much more money had been distributed as income rather than capital distributions than was shown on the corporate returns.
Result: We convinced the Appeals Officer that the returns were accurate and the $75,000 tax deficiency was dropped.
Our client was a computer programmer whose 2003 tax return was audited. The IRS was suspicious of unreimbursed employee expenses.
Result: We prepared the appropriate documentation to support the expenses and the audit was cleared with no additional tax being assessed.
Our client was a professional recording engineer whose return was examined and a long-term-capital-gains tax assessed for an additional $55,000 in taxes. We found and supported the taxpayer’s basis in the items sold and reduced the gain on paper to almost nothing.
Result: The client paid an additional $1750 in tax, not $55,000.
Our client, a dentist, owed the IRS over $1.3 million in income taxes. Although he had previously filed for bankruptcy using the services of a law firm specializing in bankruptcy, the IRS claimed that the taxes survived the bankruptcy.
Result: Through a properly timed offer in compromise we saw to it that the tax debt was reduced to $24,000.
Our client, a beauty salon operator, owed the IRS approximately $75,000 in income taxes.
Result: The IRS accepted an offer in compromise for $3,500 in full payment of her tax debt.
Our client owed over $170,000 in federal income taxes, and the IRS had already served a levy on her wages. She was about to end up penniless living with her parents.
Result: We convinced the IRS that she was an innocent spouse, and all of the money was released. Today she is remarried and owns her own home.
Our clients owed over $460,000 in payroll and income taxes to the IRS.
Result: The IRS Due Process Officer accepted an offer in compromise of approximately $130,000 even though the Appeals Division Officer had previously been unwilling to accept less than $285,000 from the clients’ first two attorneys.
Our client had been levied by the IRS to collect joint (married) tax liabilities in excess of $300,000.
Our client owed over $5.3 million for 1992 through 1996. The IRS rejected a previous offer in compromise by the taxpayer which was prepared by his first tax lawyer.
Result: The IRS accepted our offer in compromise for $339,000.
Our clients corporation failed to timely deposit payroll taxes.
Result: We convinced the IRS that there was reasonable cause for a corporation’s failure to timely deposit and pay payroll tax. As a result the IRS forgave approximately $100,000 in interest and late payment penalties it had first gone after.
Our client came to us after the IRS had levied on his wages for a payroll tax penalty of over $60,000 after his CPA had submitted three unsuccessful offers in compromise.
Result: Ultimately the IRS conceded that no tax was due.
Our client owed approximately $100,000 in payroll taxes, and income taxes.
Result: Through our efforts the IRS agreed to accept $7,500 in full payment.
Our client owed almost $2 million dollars in income taxes due to negligence errors on his tax returns. The errors could be traced to his former CPA, who prepared the returns and later went out of business.
Result: After filing a petition with the IRS we settled the case for $20,000.
Our client owed the IRS $140,000 in income taxes.
Result: The IRS accepted an offer in compromise for $12,550 paid over 24 months at $522 per month.
Our client owed over $540,000 in income and payroll taxes.
Result: Through the filing of a case and an offer in compromise we resolved his debt for $41,339.
Our client owed the IRS $155,000.
Result: Even though he was earning over $130,000 per year, owned a home and held $20,000 in a retirement plan we settled for $22,000. Prior to our involvement the IRS Appeals officer told the client that he wouldn’t settle because the client could afford to pay over $100,000.
Our clients owed over $43,000 as the result of an audit.
Result: Due to technical errors made by the IRS we were able to convince the IRS to forego the full amount of the taxes and to refund amounts previously paid.
Our client owed a tax debt of approximately $331,000 based upon a payroll tax penalty imposing personal liability for corporate payroll taxes.
Result: After our involvement the IRS Appeals Division agreed that a mistake had been made and that our client didn’t owe any portion of the payroll tax penalty.
The IRS determined that our client owed a tax debt of approximately $175,000 based upon a trust fund recovery penalty imposing personal liability for corporate payroll taxes.
Result: We convinced the US Tax Court that our client was not a responsible officer and nothing was owed.
Our client, an athlete, owed in excess of $2 million.
Result: We negotiated an offer in compromise which settled the case for 24 monthly payments, allowing our client to keep his interest in a 401K with assets of almost $320,000.
Our client received a statutory notice of deficiency from the IRS after an audit claiming that over $130,000 was owed.
Result: After filing a petition with the United States Tax Court a settlement was negotiated for less than $2,600.
An offer in compromise submitted by our client’s accountant was rejected when the IRS determined that he could afford to pay the total tax due of over $165,000.
Result: We convinced the same IRS revenue officer to accept less than $30,000 in a new offer in compromise.
Tax preparer charged with crimes and civil fraud, facing possible 25 years in prison.
Result: Charges dropped.
Physician charged with submitting false tax return, civil fraud.
Result: Charges dropped.
Corporate officers facing corruption and bribery charges.
Result: Investigation ended without charges.
Retailer charged with omitting $1.3 million in income from tax return.
Result: Case converted to civil only after facing possible criminal prosecution, overturned on appeal.
Wholesaler charged with violations of SEC law as a result of tax avoidance scheme.
Result: Investigation dropped.
Tax preparer charged with EITC penalties and loss of license.
Result: Investigation dropped.
Professional health practitioner charged with tax avoidance scheme and loss of professional license.
Result: Investigation dropped.
Contact attorney John Ellsworth as soon as you are notified of an impending tax audit or IRS collection activity. We offer immediate, tough, intelligent solutions.
These results are samples and should never be interpreted to mean you will get a similar result. There are many other cases too. All cases have different factual bases and different authorities investigating so no two cases are ever alike and no two results are ever alike. However, this remains the same: if you entrust your case and your livelihood to us we will use every possible aspect of the law to defend you and defend your assets and we will outwork the IRS or other agency that is pursuing you by dedication and tenacity. We never quit fighting!