Resolved: $780K Liability for a Staffing Company Published January 1, 2018
Tax Guard successfully resolved a $780,000 IRS liability through an Installment Agreement of $4,759 per month for a staffing company, which allowed the business to continue funding with Goodman Factors. A few years earlier, the staffing company’s sales unexpectedly dropped by one-third. It survived the downturn, but accrued a federal tax liability as a result. The owner of the staffing company negotiated an Installment Agreement of $7,000 per month on his own, but the business could not afford the payments and defaulted the agreement.
Tax Guard was retained after a federal tax lien had already been filed and the 45 days had expired. A Tax Guard Associate was then able to:
- Prevent the IRS from levying bank accounts or receivables;
- Quickly negotiate an affordable Installment Agreement of $4,759 per month; and
- Shortly thereafter, obtain a subordination of federal tax lien to protect Goodman Factors.
“When we initially spoke with Tax Guard, we assumed our new Installment Agreement would be $7,000 or more per month, which had been difficult for us,” said the owner of the staffing company. “We were pleasantly surprised when Tax Guard negotiated an agreement with a payment lower than we had negotiated ourselves. It’s a relief to know we can pay what we can afford over the next ten years [statute of limitations] and not worry about having to try to repay the amount in full. Additionally, Tax Guard preserved our factoring relationship with Goodman, which is vital to our company’s operations.”
“Tax Guard obtained a subordination so quickly that we never had to worry about our collateral,” said Bret Schuch, Executive Vice President, Goodman Factors. “Tax Guard tells us what we need to know so we can make an informed decision whether to fund and, ultimately, handles the IRS. As a result, we are able to continue funding our client, which we appreciate.”
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 superiority in this field allows the lender/client relationship to thrive for long-lasting benefit.