Abatement

Peter was a silent partner who had invested in a business that had failed some ten years earlier. Due to an incompetent business partner who mismanaged the business, payroll taxes were left unpaid that Peter did not become aware of until many years later when the IRS came knocking at his door. Because the business was a general partnership, Peter was held personally responsible for the unpaid payroll taxes even though he had little involvement in the day to day operations of the business. Peter filed his own Offer In Compromise and thought his tax problem would soon be over. Unfortunately, the IRS thought otherwise. After patiently waiting for nearly a year, they rejected his Offer. Frustrated, he appealed their decision hoping to resolve his problem once and for all. Two years passed and the Offer still had not been accepted. After nearly three years of going it alone, Peter gave up, got smart, and called our firm for help. Our firm determined an Offer was a viable solution but would have to be renegotiated due to many technical errors in the drafting of his Offer. We determined that an abatement of the penalties assessed would achieve the same result in 9 to 21 months less time and for approximately the same cost to refile and renegotiate a new Offer. In about two months time, we negotiated a settlement agreement abating $30,000 in penalties and ending Peter’s problem for good. He was extremely happy it was all over and he could get on with his life.