Resolved: $800K Liability for Logistics Company Published October 8, 2018

Tax Guard successfully resolved an $800,000 IRS liability through an installment agreement of $9,786 per month for a logistics company in Southeast, which allowed the business to continue funding with Carter Funding Corporation.  The business had fallen behind with the IRS when one of its larger customers failed to pay more than $400,000 for service performed.

Tax Guard was retained 30 days after the federal tax lien was filed. A Tax Guard Associate was able to:

  • Quickly overcome the concerns and objections of the group manager, who did not understand the operations of the logistics company;
  • Negotiate an installment agreement of $9,786 per month within two weeks of being retained (before the 45th day following the filing of the federal tax lien);
  • Prevent the revenue officer from terminating the installment agreement despite the logistics company accruing additional liabilities shortly after the agreement was approved;
  • Cure the issues with the installment agreement and preserve funding; and
  • Obtain a subordination of federal tax lien to protect Carter Funding Corporation.

“For some reason, our revenue officer and group manager just didn’t understand our business. They thought we had more assets and a greater ability to pay than we actually do. There was no way we could afford what the IRS was asking us pay,” said the owner of the logistics company. “Tax Guard was able to quickly get the group manager to understand our situation and negotiate terms we could actually afford. Without Tax Guard’s efforts, we would have lost our funding and our business.”

“In a perfect world, our client would have begun working with Tax Guard before the federal tax lien was filed. It would have been much easier for everyone involved – there were definitely some uncomfortable moments that probably could have been avoided if Tax Guard were involved earlier in the process,” said Chuck Carter, President of Carter Funding Corporation. “But, this was ultimately a great learning experience. Tax Guard can resolve an issue with the IRS so we are protected and can continue funding, even when the IRS files a federal tax lien.”

Tax Guard is the only company that monitors tax compliance and identifies tax risks before an IRS tax lien is filed. Its patent-pending due diligence and monthly monitoring processes identify businesses that have not paid or filed taxes on time and determine with pinpoint accuracy the level of risk to factors and asset-based lenders. When tax resolution is deemed necessary and advantageous to the factor or asset-based lender, Tax Guard’s superiority in this field allows the lender/client relationship to thrive for long-lasting benefit.

Posted By: Jason Peckham