Payroll Taxes Offer In Compromise
Payroll Taxes Offer In Compromise
When the State of Michigan notifies your company of an outstanding tax debt, many business owners don’t realize that the amount they owe and the amount they’ll have to pay is not always the same. Business owners who are aware of their rights and have a good representative on their side can submit an offer in compromise to the IRS or State of Michigan’s collection agencies which, if accepted, will allow the company to settle their debt at a fraction of the original cost.
At Franskoviak Tax Solutions, our corporate tax experts have negotiated hundreds of cases on behalf of companies facing problems similar to yours. On top of that, we can promise each of our clients a dedicated representative throughout their entire process—your tax problems are not “just another case” to you, and they aren’t to us either. To find out if your company is eligible for a payroll tax offer in compromise, a penalty abatement, or other corporate tax relief solution, contact us today and schedule your free consultation.
Offer in Compromise
Justin had fallen into some hard times due to the economic downfall in his field of hardwood floor installation. This left him and his wife a hefty bill of $41,194.26 due to the IRS for back taxes, and they had no means of being able to pay it off. Justin came to Franskoviak Tax Solutions, P.C. to see if he could get any relief with his IRS tax bill. With the IRS “Fresh Start” program we were able to settle his tax debt for $500.00, a settlement rate of only 1.2%!
Justin was now able to continue to provide for his family without the worry of the IRS showing up and taking everything. He appreciated everything we had done for him and had these kind words to share.
“They [Franskoviak Tax Solutions, P.C.] has been great the whole time. They helped me out, that’s for sure.” “[Franskoviak Tax Solutions, P.C.] was extremely helpful in getting this resolved. Got nothing but good things to say.”
Offer in Compromise
Ashley and Charles had a lucky streak at a casino. However, when it came time to file for taxes that year, their lucky streak ended up costing them with a tax bill they could not afford with the State of Michigan. Ashley is a full-time student so that left them with little funds to spare. We negotiated with the State of Michigan and we were able to settle their tax debt for $2,000, a savings of $14,944.
Ashley felt relief when she heard the encouraging news; in fact she had some words of praise for Franskoviak Tax Solutions, P.C.
“You guys [Franskoviak Tax Solutions, P.C.] helped us out a lot! Everything went so well, we were in a tough spot. It took a load off of my mind.”
How long can the IRS collect back payroll taxes?
The IRS statute of limitations is usually 3 years to audit or make an assessment. There are many exceptions from this rule that give the IRS 6 years or longer. And once an assessment is made, the IRS collection statute is normally 10 years. Everything varies and depends on the situation.
Consulting with a tax professional is always a smart move. We offer a free consultation, in many cases, after learning your options, you may be able to manage the situation yourself. Otherwise we have over 20 years dealing with circumstances like these and have a 98% success rate in getting favorable results.
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For over a decade we had been dealing with a very large State of Michigan tax problem which stemmed from liabilities related to the Michigan Single Business Tax and State Withholding Tax. We owed $441,000 with interest and penalties being accrued on a monthly basis. Due to a series of unfortunate events, followed by a downturn in the economy, we realized we would not be in a position to ever repay this contested liability of $441,000.
We contacted Mike Franskoviak in the spring of 2016 to schedule a meeting and discuss our situation. I researched the boutique firm and felt they were reputable, qualified and the right fit for what we needed. We sat down with Mike and his associate, John Foran, to review our case and after much discussion they both felt the Offer in Compromise (OIC) program for the State of Michigan based on “Doubt of Collectability” would be the best way to settle our liabilities.
We filed the OIC in June 2016 and it took over one year before being reviewed. Upon financial review, the first OIC was denied. With the knowledge that both Mike and John had on this case and on the law written, we went to an appeal and after going back and forth for months we ultimately prevailed. In fact, the senior policy director for the State of Michigan Treasury department indicated they would alter the appeal process due to Franskoviak’s efforts in this case. Mike and John did an outstanding job of detailing the flaws which led to the original rejections. Without their dedication and knowledge of the subject matter over a two year period, we would still be dealing with this debt.
Ultimately, Franskoviak Tax Solutions was able to obtain a positive outcome – In August of 2018 the Offer in Compromise was accepted as was originally submitted - $441,000 owed and Settled for $10,000.
Mike Franskoviak and John Foran are two outstanding professionals who cared deeply about our tax situation and worked endlessly to help us resolve and relieve financial pressure from the State of Michigan. I worked closely with John and what I appreciated most was his commitment to respond whether it be a phone call or email. Regardless if he was delivering good news or bad, he never left me hanging and I never felt like I had to chase him. This was not an easy case but their perseverance and attention to detail resulted in a resolution that we could not have achieved on our own. I will never forget the day Mike and John called with news of the settlement – I put the phone down and just cried. For over a decade we had been dealing with this stress and now a big weight was lifted both emotionally and financially. I have recommended the Franskoviak firm to others and believe anybody seeking help with tax issues and filings would benefit from their expertise, not to mention their great staff who are so welcoming and always there to take a call or offer a cup of coffee. Mike and John have become friends of ours and we have entrusted them with all our tax work moving forward.
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