Tax Guard Resolves $5.6MM Liability for Northeast Staffing Company

Tax Guard resolved an IRS liability of $5.6 million for a staffing company in the Northeast by negotiating an installment agreement with a payment of $30,000 per month. As a result, the business was able to begin factoring with a new lender — Bay View Funding. 

The staffing company originally fell behind with the IRS when a few of its largest clients filed for bankruptcy. Prior to Tax Guard’s involvement, the business negotiated its own repayment plan, which it quickly defaulted, causing its original factor to cease funding. As a result, the business’s cash flow suffered and it fell further behind with the IRS.

Ultimately, the revenue officer became frustrated and aggressive, threatening to levy the business’ customers and requesting payments of $50,000 per month. Matt Lorenz, an associate with Tax Guard, prevented the IRS from levying bank accounts and accounts receivable; negotiated an installment agreement with a payment of $30,000 per month based on the business’s ability to pay, which has now been in effect for almost two years; quickly obtained a subordination of federal tax lien to protect Bay View Funding and preserve the new funding relationship; and obtained an extension of the subordination for an additional year. 

The payment of $30,000 per month constitutes a partial payment installment agreement (PPIA), which the IRS acknowledges will not fully satisfy the liability and positions the business to pay approximately $3.6 million over the statute of limitations.

“Our revenue officer wanted to levy us out of existence,” the business owner said, according to Tax Guard. “Matt and Tax Guard held off the IRS, helped us get compliant and got us funded with a new lender. They know how to thread the needle in fixing the IRS problem while also addressing lenders’ concerns. We have a payment plan we can afford, and we’ve been compliant for two years. If it weren’t for Matt’s efforts, we would have lost our business two years ago.”

“We’ve worked with Tax Guard for years,” Andrew Aquino, executive vice president at Bay View Funding, said. “They’ve reminded me more than a few times that most IRS agreements fail, generally. So, we really appreciate the partnership between Tax Guard, Bay View and our client — it increases the chances for a successful outcome. By working together, our client has kept up its agreement with the IRS and we’ve been able to fund for two years.”