Resolved: $235K Liability for Staffing Company Published January 1, 2018
Tax Guard successfully resolved a $235,000 IRS liability through an Installment Agreement of $750 per month for a staffing company in Texas, which allowed the business to continue funding with Pay4Freight. The business had fallen behind with the IRS several years earlier when it unexpectedly lost 60 percent of its revenue. However, they were able to add several new clients and begin making federal tax deposits in full and on time (which is a requirement for an Installment Agreement with the IRS). A Tax Guard Associate was then able to:
- Prevent the IRS from levying bank accounts and accounts receivable;
- Negotiate an Installment Agreement of $750 per month;
- Obtain a subordination of federal tax lien to protect Pay4Freight;
- Address and abate/remove a subsequent W2/W3 civil penalty that arose (which resulted in the default of the original Installment Agreement);
- Reinstate the Installment Agreement after it was defaulted; and
- Secure a new subordination of federal tax lien.
“We wouldn’t be in business if it weren’t for Tax Guard,” said the owner of the staffing company. “Tax Guard negotiated a great deal for us. A few years later, we were doing everything we were supposed to do, when the IRS tripped us up with a W2/W3 civil penalty from years ago that defaulted the agreement. Tax Guard was able to resolve the issue, reinstate the Installment Agreement, and preserve our funding relationship.”
“I thought a large liability would require a large monthly payment,” said Robert Beard, President of Pay4Freight. “However, Tax Guard helped them get current and compliant with the federal tax deposits and then negotiated an Installment Agreement with a low monthly payment my client can afford. We appreciate Tax Guard and the ability to fund our client on a long-term basis.”
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.