Resolved: $3.5 Million Liability for Staffing Company Published March 29, 2021

Tax Guard successfully resolved an IRS liability of $3.5 million through an installment agreement of $5,000 per month for a staffing company in the Southeast. As a result, the business was able to continue funding with United Capital Funding. 

The business defaulted on its original installment agreement of $15,000 per month due to accruing new liabilities. Cash flow suffered when the staffing company lost a couple of substantial clients. Because of the terminated agreement, the IRS filed a federal tax lien, which threatened the funding relationship. Courtney Justice, an Associate with Tax Guard:

  • Prevented the IRS from levying bank accounts and accounts receivable,  
  • Negotiated an installment agreement with a monthly payment of $5,000 based on the business’s ability to pay, and
  • Obtained a subordination of federal tax lien to protect United Capital Funding and preserve the funding relationship.

The payment of $5,000 per month constitutes a partial payment installment agreement (PPIA), which the IRS acknowledges “will not fully satisfy the liability” and positions the business to pay approximately $600,000 over the statute of limitations.

“Our world was turned upside down after we defaulted on our original agreement and the IRS filed a lien,” said the business owner. “We panicked when we thought we were going to lose our funding, but Courtney was calm and alleviated our fears. I can’t believe she negotiated an agreement with payments lower than the first!”

“We can’t force our clients to work with Tax Guard, but we highly recommend their services,” said Ivan Baker, CEO with United Capital Funding. “Tax Guard gets better and faster results than when our clients try to resolve their tax problems on their own or use their local attorney or accountant. Courtney’s work is another great example.”

When federal tax issues arise, don’t wait for the IRS to file a federal tax lien or issue levies. Be proactive. Speak with a Tax Guard specialist today.

Posted By: Jason Peckham