LOS ANGELES, CA, December 07, 2011 /24-7PressRelease/ -- Paying taxes is difficult, especially these days when incomes seem less stable. If you owe back-taxes from previous tax years, the thought of coming up with that money can be downright daunting.
Michael (Los Angeles, CA) came to the Blue Tax offices with a combined IRS and State unpaid balance of roughly $20,000. The majority of Michael's returns were filed except for his federal returns for the years of 2003 and 2009. In fact, the IRS filed a Substitute for Return (SFR) for Michael for the year of 2003. This occurs when a taxpayer fails to file a return and so the Internal Revenue Service (IRS) files a return for them without taking into account any deductions, the ultimate result being an extremely high tax bill. The challenge for Blue Tax was going to be getting Michael compliant with the IRS and ensuring that he was not placed in collections while they were able to work on a resolution for him.
The Blue Tax experts set a goal of filing the IRS returns for 2003 and 2009, while establishing a hardship status for Michael with the IRS and placing him on a small payment plan with the Franchise Tax Board (FTB).
After filing the 2003 and 2009 IRS returns, Blue Tax was able to successfully establish a Currently-Non Collectable (CNC) status for Michael. Blue Tax determined that it was not favorable for the taxpayer to be placed on a Currently Non-Collectable status for the FTB because it would have defaulted after two years. Alternatively, Blue Tax negotiated for him to be on an affordable payment plan of $25/month.
In the end, Blue Tax was able to establish two favorable outcomes for Michael; the first being the CNC for IRS and the second being a competitive payment plan with the FTB. Michael could finally breathe a sigh of relief that all of his tax-related issues had been handled!
For more information about Blue Tax and its ability to help taxpayers resolve their tax problems, please visit www.BlueTax.com or call (888) 310-5858 for a free confidential consultation.
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