Resolved: $900K Liability for Staffing Company Published January 1, 2018
A staffing company based in California recently turned to Tax Guard for assistance in resolving federal tax issues. Because of multiple hardships, including the business owner’s serious health problems and the unexpected loss of revenue from a high-volume client, the staffing company accrued a $900,000 federal tax liability and tried unsuccessfully to negotiate an Installment Agreement with the IRS on their own.
When the staffing company was referred to Tax Guard, a lien had already been filed and the business was unable to obtain factoring. After overcoming significant objections from the IRS, a Tax Guard Associate was able to secure a favorable resolution for the staffing company, including:
- Prevention of enforced collection (levies), which enabled the staffing company to begin factoring with Far West Capital.
- New, manageable Installment Agreement terms with monthly payments of $15,000.
- A subordination of federal tax lien to protect Far West Capital’s security interests.
- Abatement of penalties of approximately $200,000 based on the IRS’s “reasonable cause” criteria.
“We would not be in business today if not for Tax Guard. They were as vital as oxygen for our company,” the staffing company owner said. “Tax Guard’s expertise and fantastic work helped us navigate our way to more favorable terms with the IRS, including removal of approximately $200,000 in penalties.”
“Tax Guard worked tirelessly to get the IRS to lower the monthly installment payment. I know this helps our client more than anyone realizes,” said John Center, Vice President with Far West Capital. “Tax Guard was diligent from day one and kept us up to speed throughout the entire process. Without Tax Guard’s involvement and transparency, we could not have entered into a lending relationship with a client we truly value.”
About Tax Guard
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.