Protecting Businesses from Forced Closure | Negotiating Levy Releases
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Recent Formalized Installment Agreements | Creative Settlements

Creative Settlements

• An individual hired Clear Creek Consulting to manage a state of North Carolina tax issue stemming from a move our client made from Colorado to North Carolina. In 2001 our client moved, but continued to work for the same company. In 2007, our client received written correspondence from the state of North Carolina that she owed over $7000 in state income tax due in large part from federal income tax information showing she resided in North Carolina. Our client claimed that this State income tax had been paid to the State of Colorado by her employer, rather than the tax being paid to North Carolina as it should have been. The State of Colorado had no record under our client’s social security number that she had ever paid income tax to the state. Therefore, the Associate had to contact our client’s former employer in order to establish where our client’s state income taxes were being paid. Our client continued to maintain the position that her State Income Tax was being withheld by her employer, and paid to Colorado by the employer. In researching this claim, many of the Human Resource Personnel were less than cooperative because to them it didn’t make sense that the company would be paying an employee’s taxes on her behalf. We maintained our faith in our client’s claim, and stayed persistent until finally someone was willing to help. After at least a dozen more calls than it should have taken, we were finally able to find someone who could locate the precious employment record located in some remote and obscure warehouse somewhere in California. The document did verify our client’s claim. Therefore, North Carolina was at fault for assessing our client the amount of income tax it had for 2001. We presented the hard to find document along with an IRS W-2 wage statement to a North Carolina Agent. After some verbal persuasion, the North Carolina State Agent released the garnishment on our client’s wages, the outstanding debt of the client was settled, and a refund of $466 dollars was issued to our client.
• A vitamin distributor in New Hersey had numerous missing 940 and 941 returns resulting in $9,380 liability owed to the IRS. The Associate negotiated a three week hold with the Revenue Officer so the client could file the missing returns. Unfortunately the returns and all tax records were destroyed during Hurricane Charley, however, we were able to provide the insurance claim as proof of damages to the Revenue Officer who then agreed to place the single quarter of liability into uncollectable status provided our client filed her 940 returns for 2003 and 2004, as she was the only employee at the time. Our client filed her returns and now her liability which has been paid totaled $208.
• An individual in Seneca, South Carolina hired Clear Creek Consulting to manage a $320,000 liability owed to the IRS which was constantly harassing him. As a retired 83 year old he did not want to deal with the stress and hassle that the IRS was subjecting him to. His Social Security wages, his only income, had been garnished, severely limiting his ability to maintain any kind of quality of life. He had also received a levy against his bank account which took several thousand dollars that he had been relying on. As his liability was so high, the IRS was unwilling to leave him alone and he was terrified of further collections against him. The Associate assigned to this case entered our powers of attorney forms, and had a rough negotiation with Automated Collection System for a hold on Enforced Collections, however, once successful, this was the first peace of mind our client had experienced in quite some time. Once we had the hold in place, we obtained all of the information that we needed to file our client’s missing returns and eliminate the Substitutes for Returns that the Internal Revenue Service had filed against him. Over the next several months we ensured the IRS that our client had the necessary resources to get his missing returns completed and filed. Automated Collection Systems did not file the returns expediently or was very willing to speed up the process. In fact, due to the high dollar amount, ACS stalled and continued to attempt collection action to the very end. When the dust cleared we saw that we had not only been able to reduce Mr. Olsen’s liability to zero, but had, in fact, ensured that he received a refund check from the Internal Revenue Service to the tune of $12,000.00!
• A developer in Upper Saddle River, New Jersey hired Clear Creek Consulting to manage an IRS liability of $902,000. When our client’s business was up and running, it had neglected to file some 1120 returns and some 941 returns back in 2004. Due to the timeframe of this liability, we instructed our client to file a ‘zero return’ for the first quarter of 2005 and to not file 1120’s due to the fact that there is nothing for the liability to attach to. In the end, our client walked away from the IRS being able to asses him personally and since the business is now a defunct entity, our client walked from the full balance of $902,773.81!
  
• An owner of an RV business in Montana had accrued more than $159,000 in outstanding tax liabilities owed to the IRS. Our client was approaching retirement, so we decided that the best course of action was to shut the corporation down and transfer ownership to some long-term employees who would then hire our client. Once this was in the works, we were in the process of filing an Offer in Compromise, however our client was not timely in submitting documents nor transferring ownership, however, the Associate managed to keep the IRS from levying the old and new business for several months. Eventually, an Offer in Compromise was accepted for $13,696 on the $80,000 in Trust Fund taxes that our client owed. In total, we saved our client over $145,000 from the original liability.
• When an individual in North Carolina contacted us regarding a $15,000 liability owed to the state, he was being harassed for not filing individual tax returns that the State said he had never filed. The State had been actively collecting against him for two years, and were still trying to get money from him after he was laid off from his job, lost his car and all his possessions, and was forced out of his home. He was adamant that he had filed those returns when they had been due several years ago. The assigned Associate’s initial strategy was to attempt to get the information that the State had used to generate the substitutes tax returns. The State Revenue Agent could not locate what they had used, and told the Associate that it didn’t matter much anyway; she would still attempt to collect. After this lack of cooperation, the Associate investigated the issue with greater scrutiny, and noticed that the statute of limitations on assessment and collections had passed. This Associate pulled up North Carolina’s Revised Statutes and Tax Code and found the information regarding the states statute of limitations. This Associate called the State Revenue Agent, statutes in hand, and argued with her for some time. Eventually she was forced to contact her supervisor, and promised that she would call back to discuss the issue in further depth. The next call that this Associate received from the State Revenue Agent was a notification that the total liability was being dismissed, and that our client was free of any and all liability to the state of North Carolina.
• An individual hired Clear Creek Consulting to manage an IRS liability of $58,749.37. After reviewing financial information and current assets the Associate assigned to this case determined that an Offer In Compromise would be the best resolution for our client. The Associate submitted the Offer to the IRS in the amount of $91.27. The Offer came back denied, at which point we submitted an amended Offer in the amount of $6,946.64. The Offer was approved saving our client $51,802.73.
• Owners of a masonry business in Independence, Iowa hired Clear Creek Consulting to manage an $88,000 liability owed to the IRS. After much consultation, the Associate assigned to this case negotiated the closure of this business with the IRS as this was the owners desire, however, they agreed that only one owner was to be assessed with the Trust Fund. Once it was all completed, only one owner was assessed and $30,000 of liabilities were removed.
• Upon receipt and review of the account record with the State of Michigan for Sales, Use, and Withholding Taxes, the Associate assigned to this case discovered that our client was being charged an assessment that did not make sense. After contacting the State of Michigan and directing their attention to the matter, the assessed amount of tax liability was promptly removed from the total balance due. The total amount removed, and saved for our client for Sales, Use, and Withholding thus far equaled $17,393.69. We are now negotiating an Installment Agreement.
• Upon contact with the IRS for our client who hired our firm to manage an $80,000 liability owed to the IRS, the Associate discovered that our client was only receiving credit on behalf of two out of three dependent children residing within their household. After further research on the discrepancy, the client in fact claimed three separate dependents on his 1040 return, with one SSN incorrectly printed on the form. The oversight had not been recognized as far back as 2000 by the IRS or our client. Once we were able to receive the proper documentation from the taxpayer, we again contacted the IRS and this resulted in a savings of over $4,000 for our client. We are now negotiating an Installment Agreement for the balance.
• An ambulance transport company in Alabama hired Clear Creek Consulting to manage an ongoing IRS debacle. The Associate assigned to this case received notification from the IRS that the liability owed for the 2nd Quarter 2005 941 tax was found to be in error and that the taxpayer’s total balance increased from the original amount determined. The account was assessed to the CAWR unit of the IRS for examination, which is when and where the initial change was made by the department to increase the liability because of a discrepancy between the W-2’s and 941 tax on behalf of our client. Our client was already on an Installment Agreement, and all payments were being applied to the 2nd Quarter 2005, but the IRS stated that the 4th Quarter 2005 had never been filed. After discussing these issues with the taxing authorities it was determined that our client was fixed to a payment plan that was bound to default in a re-occurring pattern due to the fact that all payments were being applied to the single 2nd Quarter alone. Initially, it was requested that a formal letter with reasonable cause accounting for the incorrect assessment be submitted with the missing return, to the CAWR unit. Upon further discussions and negotiations, we sent only the 4th Quarter 2005 returns to the specified unit, as requested by the IRS, as well as informed the client to update her records with each division. Once the return was sent to the correct contact, and the misappropriated assessment was communicated to be inaccurate through the means of the federal government’s account records, the official adjustment was made and the total liability for the 2nd Quarter 2005 was corrected from $285,078.86 to approximately $7,368.01.
• A construction company in East Wenatchee, Washington hired Clear Creek Consulting to manage a $46,202 owed to the IRS. The Associate assigned to this case showed the Revenue Officer that our client’s W-2’s and W-3’s matched and the 1st quarter 2003 needed to be adjusted and the additional tax assessed, in the amount of $20,160.42 needed to be removed. This Revenue Officer was retiring and assured us that it was taken care of. Our client tried to sell one of his finished properties, however, it still showed a tax lien in the amount of $37,700.92 on the property he was trying to close. Ultimately, we had our client go ahead and pay the lien off with the funds from escrow. We then sent a petition over to the Taxpayer Advocate and once again showed that the W-2’s and W-3’s matched. We requested that the additional assessed tax, along with penalties and interest, be removed and refunded back to the taxpayer. Not only did the Internal Revenue Service refund the amount of the levy, they issued and additional amount of $633.00 in interest owed to the taxpayer for a refund in the amount of $39,236.85.
• A floral shop in Allentown, Pennsylvania hired Clear Creek Consulting to manage a $45,000 liability owed to the IRS. Of this amount, our client owed $14,000 in Trust Fund, so the Associate assigned to this case assisted in the formation of a sole proprietorship for our client and shutdown the corporation. Our client paid approximately $4,000 in a Certificate of Discharge which was negotiated to partially cover some of the Trust Fund tax liability. The Associate then negotiated Installment Agreements to the IRS and to the State for $250 each. In the end, we saved our client saved over $30,000.
• A gas line installation business in Lynnwood, Washington hired Clear Creek Consulting to manage an $85,000 liability owed to the IRS. After much consultation the Associate assigned to the case decided that the best course of action was to shut this business down and open another entity. Although the Revenue Officer was threatening an alter-ego determination, the Associate managed to explain that this was the only manner in which to resolve this issue. In doing so, we saved our client approximately $50,000 in past due taxes.
• A computer consultant in Salt Lake City hired Clear Creek Consulting to manage a $150,000 owed to the IRS. Although a final resolution is yet in place, the Associate assigned to this case crafted a plan that would enable the statutes to run which immediately saved our client $38,000. We are currently in the process of proposing an Installment Agreement after requesting a Revenue Officer to be assigned.
• A bar and grill in Madisonville, Louisiana hired Clear Creek Consulting to resolve a $25,000 liability owed to the IRS. The Revenue Officer moved forward to assess the owner of this business personally which according to our client, would lead to a divorce. The Associate assigned to this case held off this assessment through Appeals on the grounds that our client needed time to refinance a property to full pay the liability. We did manage to hold off on this personal assessment, the liability is paid in full and he is still happily married.
• The owner of a general store in West Virginia hired Clear Creek Consulting to manage a $140,000 liability owed to the IRS. Because the owner had a party interested in buying his business, but refused to buy it with liens attached, an immediate solution was necessary. The Associate assigned to this case called the Group Manager directly, and negotiated a fast track Offer in Compromise by agreeing to an offer in the amount of $110,000 and submitted the paperwork soon thereafter. Within weeks, our client’s tax obligation and associated liens were erased and he sold his business within weeks of this issue being resolved, not to mention garnering a $30,000 in tax savings.
• A supper club in Wisconsin hired Clear Creek Consulting to manage a $26,000 liability owed to the state for past due sales taxes. The Associate assigned to this case attempted to negotiate a settlement with the Department of Revenue but this was rejected. We then submitted another proposal but this was also rejected based on our client not being timely with her most recent filing requirements and payment. Due to our client’s past history the DOR sent her case to the State’s revocation unit in order to revoke her sales license. Generally, the revocation unit with the Wisconsin Department of Revenue does not negotiate any type of payment plan until the taxpayer either pays the liability in full or sales license is revoked. We contacted the appointed revocation specialist and she would not negotiate any type of payment plan either. We then contacted her supervisor and negotiated with him to at least consider a payment arrangement. We then submitted a formal proposal to the revocation unit. Although this proposal was also rejected we were able to negotiate further with them resulting in a payment plan including an extension of when our client’s revocation hearing will take place. With this date being set well into the future, our client is now positioned to abide by the payment schedule we arranged and if she is successful she will pay her liability in full prior to the hearing date, and her sales license will not be revoked.
• An individual in Tracy, California hired Clear Creek Consulting to resolve a $16,000 liability assessed to our client by the state. In researching this issue, we concluded that this assessment was improper as the additional income the State reported was due to income she received as a result of life insurance proceeds our client received after her husband passed away. We submitted a protest of the assessed tax arguing that the assessment was incorrect. In short time, we were informed that the State removed the assessed tax and our client is free and clear of this liability.
• An insulation installer in Fort Smith, Arkansas hired Clear Creek Consulting to resolve a $93,282 owed to the state of Arkansas. This was a Withholding Tax liability that stemmed from 1998 to the present. Through negotiations with the taxpayer assistance department the Associate assigned to this case was able to close out our client’s withholding account from September 2004 through current, and in the process eliminated the liability that was associated with it. After these periods were removed, there was a balance of approximately $15,000. Because the State of Arkansas only allows for closed accounts to enter into an Installment Agreement for only the base portion of the tax, the Installment Agreement balance approximates $7,000. Our client is thrilled to only be paying monthly installments of $157.
• The owner of a now closed barbeque retailer in Lebanon, Tennessee hired Clear Creek Consulting to get the IRS off of his back as the IRS was trying to collect approximately $20,000 in past due taxes.Because this now defunct company did not file many returns, the IRS would not grant an Installment Agreement and was content with simply levying our client’s bank account without warning. The Associate assigned to this case convinced the IRS that a voluntary wage garnishment may make more sense for both parties. In this instance, the IRS is guaranteed payment and our client is basically on an affordable payment plan although it is called something different. Furthermore, our client can now sleep at night, knowing what his monthly payment will be and is no longer in fear of enforced collection, nor does he have to hire an expensive accountant to file past due returns.
• A protective coatings distributor located in St. Louis, Missouri hired Clear Creek Consulting to manage a $180,000 liability owed to the IRS. After much consultation, it was agreed that the best course of action was to reorganize this business. With the IRS agreeing to this resolution strategy, the associate assigned to this case negotiated a Certificate of Discharge in the amount of $1,500 which saved our client $178,500.
• A Chinese Buffet located in Buffalo New York hired Clear Creek Consulting to manage a $290,223 liability owed to the state. The Associate assigned to this case successfully negotiated an Offer in Compromise and in the process extended the deadline of the money due twice so that the client could actually pay off the balance. In the end, we saved our client $13,935.53.
• A woman in Fargo, North Dakota hired Clear Creek Consulting to manage a $20,950 liability owed to the IRS and had a pending wage garnishment against her. The Associate assigned to this case prevented the wage garnishment and negotiated an affordable $270 monthly Installment Agreement for our client. Unfortunately our client lost her job due to too many missed days at work because of her cancer treatments. After more negotiation, the Associate managed to have our client’s liability put into Status 53 saving our client $19,000 and now our client can put her energy into getting healthy.
• An individual from Austin, Texas hired Clear Creek Consulting to resolve an issue stemming from a $496,173.90 liability owed to the IRS. Although the client had closed his business down prior to hiring Clear Creek Consulting, our client still had a liability of $267,899.79 in civil penalties. The Associate assigned to this case tried to formalize an Offer in Compromise, however, the IRS would not accept the Offer because the government thought our client had additional funds. After many tedious negotiations, the IRS was worn down and they accepted a Partial Pay Installment Agreement. In this rarely negotiated agreement, our client will pay $1000 per month for 10 years. This agreement saved our client $147,899 in civil penalties.
• A fitness center in Muncie, Indiana hired Clear Creek Consulting to resolve an IRS liability of approximately $50,000. After much consultation, it was decided that the best course of action was to close the business, and draw up a Certificate of Discharge on the remaining assets which totaled $3,142.25, Although this was the agreed upon value of the assets, we negotiated this figure down to $2,000. We then consulted our client to make some voluntary payments which brought the liability down to $7,125. Once this was the balance, an Installment Agreement was negotiated for $125 per month to be paid over a five year period and our client was thrilled that such a small liability remained to be paid in such small payments.
• A detective agency in Hebron, Ohio hired Clear Creek Consulting to resolve a $31,000 liability owed to the IRS. In resolving this liability, the Associate filed protests of the Trust Fund assessment so that our client could borrow money to address the Trust Fund portion of the tax. If a lien had been filed against our client personally, the loan would not have been granted. Once the protest was agreed to, the Revenue Officer accepted an affordable Installment Agreement of $1,000 per month for the balance due.
• After retaining another competing firm, an air conditioning installation business in Palm Desert, California hired Clear Creek Consulting to manage their $827,000 liability owed to the IRS. With much consultation, it was agreed that the best course of action was to close the business. Before the business was closed, we consulted our client on how to collect all of the company’s account receivables, and we negotiated a Certificate of Discharge for $22,000 on the assets. Our client also secured a loan and made a voluntary payment of $50,000 to reduce the outstanding balance to $108,000. In following our recommendations, we saved our client over $500,000 in IRS obligations.
• A truck power washing company located in Anchorage, Alaska hired Clear Creek Consulting to manage a mounting problem with the IRS. When retained, the client had several missing returns that we managed to get filed and once these posted, our client had approximately $120,000 in outstanding tax liabilities. After much consultation, it was decided to change this company into a sole proprietorship and file a Certificate of Discharge on the assets which were valued at $8,000. In doing so, over $60,000 was discharged. Furthermore, this business was being levied by an aggressive Revenue Officer who eventually agreed to this resolution strategy.
• A wedding and prom dress company in Indiana hired Clear Creek Consulting to manage a $25,544.17 liability owed to the IRS. After much consultation with respect to the company’s financials, it was decided that the best method for resolving this issue was to close the company. In doing so, our client will now only be responsible for the Trust Fund portion of the tax which is approximately $8,000. Our client is thrilled to have been shown the big picture, and is now on an affordable Installment Agreement. Furthermore, this stress is now removed from this individual’s life.
• A business owner in Dover, Delaware hired Clear Creek Consulting to manage an outstanding tax liability of $500,000 owed to the IRS. Although this business was partially owed by her family, this business owner did not want her family or husband know of this huge issue. By successfully closing the corporate entity and submitting a Certificate of Discharge for the assets, the Associate assigned to this case shaved off $350,000 in liabilities. To reduce the the remaining $150,000 which was assessed to our client personally in the form of civil penalties, we filed and negotiated an Offer in Compromise which was accepted for $55,000 saving our client another $100,000.
• A security company in Bergen, New Jersey hired Clear Creek Consulting to manage an $80,000 liability owed to the IRS. This liability stemmed from a company that was closed in 2004, however, the manner in which the company closed was done improperly. When a newly assigned Revenue Officer was looking for full payment of the balance due, the Associate assigned to this case formally closed the business and filed all final returns. Once closed, the last formal company financial statement stated tangible assets of approximately $400,000, however, the Associate negotiated that there were only $7,000 in assets remaining and that this is the amount for which the Certificate of Discharge should be filed. The Revenue Officer agreed to this figure and enabled this payment to be directed toward the outstanding Trust Fund portion of the tax due. In the end, our client will have to pay about $25,000 in the form of an affordable Installment Agreement, saving our client approximately $55,000.
• A coffee and banking company located in Sacramento, California hired Clear Creek Consulting to manage an IRS liability of $523,535.99. At issue was the fact the Revenue Officer had alter ego case built up against our client for accruing a tax debt, closing the business and reopening an identical enterprise doing the same line of work with the same ownership in place and had accrued another significant debt with this company. Furthermore, the client was in the process of opening up three other businesses doing the same line of work which would have been assessed the full liability in this Alter Ego case if the Associate had not negotiated that the client would repay this amount over a 10 year time frame in the form of a formal Installment Agreement thereby saving our client’s growing enterprise. No personal liens were filed against our client, thereby saving their credit too.
• A real estate renovations company in Elkins Park, Pennsylvania hired Clear Creek Consulting to manage three tax liabilities which follow: Approx. $10,000 to the IRS, $10,000 to the state and $18,000 to the city. The desire of the owner was to pursue shutting down the company which the Associate assigned to this case managed to do. In the process, each taxing authority desired to pin the tax on the owner, however, with diligence, we managed to have the entire federal and state tax liabilities reduced to zero and our client ended up paying $9,000 to the city which was paid over a two month period.
• A funeral home business in Washington, Ohio hired Clear Creek Consulting to resolve an outstanding tax liability owed to the state in the amount of $21,113, however, the Associate assigned to this file noticed that our client was incorrectly assessed for another $1,429.84 which was immediately removed once this ‘oversight’ was pointed out. Our client mentioned that they needed assistance in refinancing their home and wished to use these proceeds to pay off this liability. By negotiating with the State that the State was to receive payment in full, the State agreed to reduce the liability down to $16,000 which saved our client $5,113.
• A marketing company in Brooklyn, New York hired Clear Creek Consulting to correct a mess our client made prior to our representation which involved shutting down their company. This company owed the IRS approximately $175,000 when it shut down. The owner opened a new entity which promptly accumulated another $175,000 in new liabilities. The Revenue Officer was moving to have the new entity become liable for the prior company’s liability which is known as ‘successorship’ determination. With much negotiation, the Associate managed to get the Revenue Officer to back off and accept a Certificate of Discharge in the amount of $7,000 even though the now defunct company’s balance sheet showed assets worth approximately $100,000 which immediately saved our client $93,000. Due to our management, our client is now free from enforced collection and successorship liability. Our client is now making affordable Installment Agreement payments to address this liability.
• A hair and massage business located in Lombard, Illinois hired Clear Creek Consulting after another tax resolution firm based in Broomfield, Colorado failed to resolve our client’s outstanding tax matter. Our client owed $296,000 to the IRS and after her negative experience with this competing firm, building trust with our new client was difficult, but not impossible and keeping this liability from her husband was even more of a challenge. After much discussion, the Associate assigned to this case convinced our client that we could close the company and prepare a Certificate of Discharge for the assets and have the Trust Fund assessed to her personally as she wanted to position the company for sale. Our client agreed to borrow money to pay off the Trust Fund and now she has three solid offers to purchase her company for over $100,000 which will more than cover what she must repay on the borrowed funds. Her Certificate of Discharge on the assets was accepted for $1,675 and we saved her approximately $140,000 in penalties, interest and tax.
• A roofing company located in Switzerland, Florida hired Clear Creek Consulting to protect them from having some property seized by the IRS to satisfy a liability of $80,000. In short, the Associate assigned to this case protected this property and all other company assets from seizure, and positioned the company to sell another property that the Company’s owner did not mind selling to satisfy this debt. Once the property was sold and the liability was paid, the Associate negotiated a penalty abatement in the amount of $30,000 for our client.
• A Manufacturing company in Neshanic Station, New Jersey hired Clear Creek Consulting to manage an IRS liability of $50,000 and a state liability of $9,000. Within months the Associate assigned to this client successfully negotiated an Offer in Compromise with the IRS for $6,969.43 saving our client over $43,000. With respect to the liability owed to the state of New Jersey, we negotiated that because the business has been closed for several months, all the penalties and interest on this liability should be abated. The State Revenue Agent gave in and this $9,000 liability was settled for $1,943 which will be paid over the course of several months.
• A mobile home dealer in Little Rock, Arkansas hired Clear Creek Consulting to manage an IRS liability of $250,000. After all avenues were exhausted, our client decided to re-incorporate, and we filed a Certificate of Discharge on the assets saving our client over $125,000 in penalties and interest. We are now in the process of preparing an Offer in Compromise to absolve the remaining balance.
• A floral shop in Chico, California hired Clear Creek Consulting to manage a $65,000 liability owed to the IRS. The Associate assigned to this client negotiated that because much of the liability was from the 1990’s, the ability for the IRS to assess the Trust Fund had run statutes, and therefore the liability was reduced to $15,000. Furthermore, the Associate negotiated to have some other prior payments reapplied to the Trust Fund, further reducing the liability to below $10,000. Due to this small amount, the Revenue Officer agreed to not assess the Trust Fund Recovery Penalty which preserved our client’s personal creditworthiness. Our client is now selling the business to her daughter and because the assets only consist of some refrigerators and office supplies, the $65,000 liability will be settled for a few hundred dollars.
• A diner in St. Paul, MN hired Clear Creek Consulting to manage an IRS liability of $45,000. In discussing all of the resolution strategies available to our client and learning that our client wanted to position the business for sale, we concluded that the best resolution would be to prepare a Certificate of Discharge on the assets and re-incorporate the company under new ownership. In so doing, our client will settle this liability for less than $10,000, and will not be assessed the Trust Fund Recovery Penalty which will preserve our client’s personal creditworthiness.
• A former client of a larger firm based in Broomfield, Colorado hired Clear Creek Consulting to resolve a tax issue that was basically ignored by the previous Power of Attorney. At issue was the need to preserve our client’s credit history, who owned a residence home for senior citizens in Tucson, Arizona so he could move forward with solidifying citizenship for his wife who was still living overseas. With great creativity we secured a loan which was no small feat for our client to address the Trust Fund portion of the IRS liability of $45,000 so this would not be assessed to him. If assessed, this would have all but stalled the process of making his wife a US citizen. The remainder of the liability was placed into an affordable Installment Agreement that the business is now paying.
• A landscaping contractor in Sudbury, Massachusetts hired Clear Creek Consulting to resolve a $200,000 liability to the IRS. Due to the ignorance and incompetence of the assigned Revenue Officer, this case was only resolved due to the persistence of the Associate assigned to this client. By taking this case three times through the Appeals process, we were finally able to attain the buy-in necessary to formally close this business down and have the Trust Fund assigned to the responsible parties. We then had to explain the situation to the Certificate of Discharge Reviewer because the Revenue Officer’s notes were completely incorrect. With diligence, we were able to straighten everything out, secured a loan to pay off the Trust Fund, and our client is now 100% compliant and has no liability.
• First, it is important to note that we finalized for our client, a proprietary trucking and hauling business located in Richburg, South Carolina, that their entire IRS liability of $100,000 was to be placed into a non-collectible status, indefinitely. Neither the IRS or the State Department of Revenue has any interest in levying or seizing our client’s assets.  The issue that necessitated immediate attention had to do with a Certificate of Discharge application, and a priority 1st mortgage on the property involved in a personal injury claim against the owner several years ago. Due to this legal matter, the owner proceeded to foreclose on the property. Late one Friday afternoon the Associate was notified that the property was to be auctioned the following Monday. We had attempted to have a Certificate of Discharge application accepted; however, the owner financing arrangements proved to be too difficult to push through with Technical Services. It appeared that the property would be sold at auction, and little, if any, of the proceeds would go to the Internal Revenue Service tax debts. After much brainstorming, discussions with four different attorneys representing our client on this legal matter, the Internal Revenue Service (Technical Services), my client, and the potential buyer listed on the Certificate of Discharge application, the Associate was able to come up with an 11th hour proposal that everyone could agree on. Rather than sell the actual property that was in question (93 acres of wooded area surrounding the business), we would sell the mortgage on the property. This transaction would be free from any interference from the Federal and State Tax Liens, and would allow the buyer to remain in primary lien position. When resubmitting our Certificate of Discharge proposal, we could utilize this mortgage as partial satisfaction of the agreed upon purchase price, with all remaining proceeds, $140,000, going to the IRS and closing costs. Working with the attorneys over the weekend, we were able to put a halt to the auction within approximately 2 two hours of the sheriff’s sale on Monday morning. Had the brakes not been put in place on this, the taxpayer would have had to file bankruptcy, or enter into costly litigation. Instead, we were able to retain the property that would best be served in repaying the IRS.
• A landscaping contractor in Cleveland, Ohio hired Clear Creek Consulting to manage and resolve a $725,000 liability owed to several Ohio State tax departments. In submitting several Offers in Compromise to the State of Ohio, the Associate negotiated the liability down to $150,000 which normally must be paid in one lump sum, however, in this circumstance, the payoff was negotiated over a seven year time frame, thereby saving our client $575,000.
• A security systems business in Kingwood, New Jersey hired Clear Creek Consulting to resolve a $45,000 liability to the Internal Revenue Service while he was attempting to sell this business to another company. The Associate assigned to this case negotiated a settlement of $11,000 on the company’s assets and protected our client from being assessed the Trust Fund Penalty.
• A catering business located in New Jersey hired Clear Creek Consulting to resolve a $200,000 liability to the Internal Revenue Service. With creatively and persistence, the Associate assigned to this case negotiated that the entire liability be placed into an uncollectible status so long as the business does not generate significant revenues which has not been an issue for several years as our client suffers from a debilitating condition and only works part-time.
• A painting contractor in Leicester, North Carolina hired Clear Creek Consulting to resolve a $275,985 liability to the IRS. After consulting with the client on how to best resolve this large tax liability, it was decided to dissolve the corporation and continue this line of work under a sole proprietorship. This strategy enabled our client to walk away from $137,000 in penalties and interest. We are now filing an Offer in Compromise to settle the Trust Fund balance.
• A software company in Houston, Texas hired Clear Creek Consulting to resolve a lingering issue involving a $13,000 liability that was incorrectly assessed to an old EIN.  Following some forensic accounting on the case, where we were able to locate overpayments and mis-applications of deposits between EIN’s, we filed an Appeal to resolve the issue.  The Appeals Officer researched the case and concluded that the IRS Revenue Officer botched the case.  As a result, the Appeals Officer erased the liability by throwing the liability into Status 53.  The tax assessed is a non-trust tax on a non-existent entity and therefore has no ability to be assessed.  Therefore, by filing the correct appeal, and researching the accounting of the business and the case, we were able to erase $13,000 in liability for our client.
• A residential and commercial painting contractor located in Lafayette, Louisiana hired Clear Creek Consulting to resolve a $60,000 liability to the Internal Revenue Service. The Associate assigned to this case negotiated that due to the destruction of hurricane Katrina, and the consequent demise of this business, that the company should be shut down and reorganized. With the consent of the Revenue Officer, the company was reorganized. Furthermore, the Associate negotiated that none of the Trust Fund should be assigned to our client which relieved him of the entire liability of approximately $60,000.
• A contracting company located in California was assessed W-2/W-3 related Civil Penalties for non-filing and intentional disregard for the 2001 tax year.  Our client was assessed a $28,000 penalty for this period and eventually was levied for full payment of this liability.  Clear Creek collected all necessary W-2 and W-3 information and upon submission found that our request may take up to 10 months to reach resolution.  We contacted the Taxpayer Advocate’s Office in California and were able to expedite the process to within 60 days.  The taxpayer will be issued a check in the amount of $31,473.70 on August 22, 2006 which includes approximately $2,700 in accumulated interest. 
• A client located in West Palm Beach  Florida owed 1040 taxes from 1992. The assessed amount was $55,000. Interest of $45,000 had accrued and $7,000 in additional penalty as well. Thus, even with an abatement, the client would pay well over $100,000. The collection statute was getting ready to run in June 2007. Thus, the IRS was going to garnish wages non-stop (which would have full paid the liability given our client’s income) or make our client sign a waiver extending the collection statute to payoff the debt on an Installment Agreement. I discussed the situation with the Revenue Officer given our client’s disposable income and other debt, and was able to have an agreement accepted where our client pays $3,000 a month for the next 12 months and then is done. Our client will pay $36,000 and the $100,000 liability will be satisfied with no collection statute extension or enforced collection as long as the payments are made.
• A Houston in-home care company retained Clear Creek Consulting to resolve an IRS liability of $550,000 and transfer the assets of the company to another firm through a Buy/Sell Agreement. The assigned associate avoided any and all fraudulent conveyance of assets for the new owner while indemnifying the client from the Trust Fund Liability which the new owner would assume while also employing the former owner for a three year period of time. The company is now free from enforcement action and is able to address the liability by making affordable monthly payments.
• A Montana based painting company retained Clear Creek Consulting to resolve an IRS liability of $47,000. On our initial consultation, the Associate assigned to this case consulted our client to consider shutting down his company and opening up another company with only contract employees. Within thirty days, the client had a new company up and running with no payroll tax obligations, and the assigned Revenue Officer agreed to dismiss $33,000 in penalties and interest without any of the Certificate of Discharge proceeds being directed to the penalties and interest. These funds were all directed to the Trust Fund balance.
• An Illinois communications company retained Clear Creek Consulting to resolve a $2 million liability to the Internal Revenue Service. The assigned associate closed the corporation without any liens or enforced collection which was a specific client request so the client can move forward with capitalizing the new company. The liability was reduced to $500,000 which the client will address with personal liquidity.
• A New York and Florida restaurant chain had been battling continuous levies from both State Taxing Authorities on a total liability of $450,000. With the State of Florida, the Associate negotiated to have the file taken from the State Revenue Agent, and have it reassigned, and in the process had all money that had been levied returned to the client. The client is now in an affordable Installment Agreement with the State of Florida. With the State of New York, the Associate negotiated the client’s previously negotiated Installment Agreement reduced in half and it is now affordable and manageable.
• After dropping a competing firm that had not managed to negotiate a resolution for our client in over two years, this Ohio-based tool and mold company now has a pending Installment Agreement all but finalized because the Associate assigned to this file managed to demonstrate to the Revenue Officer on this file that the assets in question were not enough to secure lending to pay down the $83,000 IRS liability. Within a few months, the Associate, using great creativity, managed to finalize an agreement that our competition could not obtain in two years.
• A competing firm was not able to obtain lien releases for several periods of liability in which the liability was paid in full. Within several weeks, the Associate assigned to this file secured the release of these liens through the state and county offices which enabled our client to obtain a business loan so that they could grow their business and pay down some other liabilities and our client is now cash flow positive.
• A Home Grocery Service in Willoughby Ohio retained Clear Creek Consulting to resolve a lingering IRS issue original involving $64,000 in successor liability that stemmed from a poorly executed debt restructuring plan months ago. By arguing that the new entity is different and that the equity in some business property is not worth seizing due to its encumbrance over the life of the collection statute, we were able to discharge the lien interest in the property, and remove all successor liabilities. We successfully negotiated that the new entity must pay a nominal $1,500 on the remaining corporate liability and the owners are now on an affordable $250 monthly Installment Agreement for the Trust Fund balance that approximates $32,000. Most of this liability will not be paid, however, because the statutes to collect will expire in a few years. At the very least, we effectively cut our client’s liability in half.
• Clear Creek Consulting implemented a new resolution strategy that has only been recently permitted by the IRS. This new strategy is called a Partial Payment Installment Agreement which was successfully negotiated for a Utah Pluming Company. We explained to the Revenue Officer that the financial condition of the taxpayer could not support a traditional Installment Agreement Payment Plan, and that the entire liability of over $40,000 would never be fully paid. To resolve this issue, we negotiated a five year Partial Payment Plan for $500 per month, even though penalties and interest would continue to accrue daily over the next 60 months resulting in significant savings for our client.
• Once retained, the Clear Creek Consulting associate assigned to this Pittsburgh manufacturing company negotiated with the Attorney General’s office to hold off on all civil prosecution until we had a firm grasp on the financial condition of this company. By auditing the company’s books, we discovered that the former bookkeeper hid numerous state and federal tax notices and was funneling thousands of company dollars into her personal account. We immediately filed an appeal with the Internal Revenue Service and a police report which will be useful in abating penalties associated with this issue. The client is now making voluntary payments to the IRS Trust Fund liability while we continue our audit. Furthermore, the state accepted our formal proposal for an affordable State Installment Agreement.

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