Resolved: $900K Liability for Manufacturer Published January 20, 2020

Tax Guard successfully resolved an IRS liability of $900K for a metal fabrication and manufacturing company in the Gulf Coast region by securing an installment agreement of $2,000 per month. As a result, the business was able to continue funding with Third Coast Commercial Capital. Because of a combination of rapid growth and a few slow-paying customers, the business fell behind with federal tax deposits. The IRS filed federal tax liens, and, shortly thereafter, the business retained Tax Guard. A Tax Guard Associate successfully:

  • Prevented the IRS from levying bank accounts and receivables,
  • Negotiated an installment agreement with a monthly payment of $2,000 based on the business’s ability to pay,
  • The payment of $2,000 per month constitutes a partial payment installment agreement (PPIA), which the IRS acknowledges “will not fully satisfy the liability” and puts the business in a position to repay approximately $240,000 over the statute of limitations for collection (approximately ten years), and
  • Obtained a subordination of federal tax lien to protect Third Coast Commercial Capital and preserve the funding relationship.

“We were under the impression that the IRS would not file a lien as long as we were talking with them. But that wasn’t the case. The lien was filed before we started working with Tax Guard; it was chaotic and stressful because our funding was jeopardized,” said the business owner. “Tax Guard was able to address our lender’s concerns so we could continue funding. Considering the amount we owe, we were surprised to learn that the IRS would accept such a low payment. Our only regret is not being introduced to Tax Guard before the federal tax lien was filed. We could have avoided a lot of pain and stress.”

“Dealing with the IRS is complicated. In our world, a good representative also has to consider the concerns of the lender, especially priority and the 45-day rule,” said Doug Gregory, President, Third Coast Commercial Capital. “We needed a resolution quickly. Because of Tax Guard’s expertise and hard work, we are able to continue funding our valued client and we know our interests are protected with the subordination.”

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