Tax Guard Resolves $670K Liability for Staffing Company
Tax Guard recently resolved an IRS liability of $670,000 for a staffing company by negotiating a lien-deferred installment agreement with a payment of $4,000 per month. As a result, the business can continue funding with LSQ Group.
The staffing company initially fell behind due to several slow-paying receivables. Despite returning to compliance, the revenue officer assigned to the case, part of the Abusive Tax Avoidance Transactions (ATAT) group, pressed for an aggressive repayment plan and initially requested installment payments of $10,000 per month.
To address the issue, Stephen Uhl, an associate for Tax Guard:
Prevented the IRS from levying bank accounts and accounts receivable
Negotiated an installment agreement with a monthly payment of $4,000 based on the business’ ability to pay
Convinced the IRS to defer filing the federal tax lien, thereby protecting LSQ Group and preserving the funding relationship
The payment of $4,000 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 $480,000 over the statute of limitations for collection (approximately 10 years).
“My revenue officer was aggressive and repeatedly threatened to file a federal tax lien,” the staffing company’s owner said, according to Tax Guard. “Stephen spoke the IRS’ language. He explained to the revenue officer how the federal tax lien would negatively affect my funding, negotiated several extensions for providing information, prevented the federal tax lien from being filed and ultimately secured an installment agreement with a payment I know I can afford. I couldn’t have done that on my own.”
"We appreciate Tax Guard’s expertise — not only can they address the IRS liability, but they also take into consideration our concerns,” Sara Kramer, portfolio manager at LSQ Group, said. “We know the IRS typically files a federal tax lien, which is why we really appreciate Stephen’s efforts here. Because his recommended solution convinced the revenue officer not to file a federal tax lien, we can continue funding a valued client without the need for a subordination of federal tax lien, which is an unusual outcome and a big win for everyone.”