Tax Guard Resolves $72MM IRS Liability for Staffing Company

Tax Guard settled a combined $72 million IRS liability for a staffing company through an offer in compromise for $24 million.

The staffing company, which is comprised of three separate entities, fell behind because of the actions of a partner, including the procurement of a merchant cash advance. The staffing company retained Tax Guard to negotiate a partial payment installment agreement. However, the IRS pushed back on the initial proposal and insisted that levying bank accounts and receivables was in the government’s best interest. Despite the negative response, Tax Guard recognized an opportunity for a different resolution during those initial discussions, leading to the offer in compromise.

Matt Lorenz, an associate with Tax Guard, worked on the case and:

• Prevented the IRS from levying the staffing company’s bank accounts and receivables   

• Identified and presented the offer in compromise as an alternative solution to the IRS, including the territory manager

• Assisted in facilitating a relationship with an outside investor, approved by the IRS, to fund the offer when the original plan to sell the business and pay the offer amount with the proceeds from the sale fell through   

• Negotiated favorable terms for the IRS offer

• Preserved the funding relationship with the lender, which asked not to be identified