Attorney Joseph M. Callahan's Legal Cases

Tax

NYS Offer in Compromise

Jul 13, 2023

OUTCOME: New York State Dept of Taxation agreed to accept less than 13% in full payment of an almost $400,000 tax debt!

An unmarried NYC resident owed New York State income taxes of $394,000. We filed an Offer in Compromise and offered the State $20,000 payable within 60 days of acceptance. That Offer was rejected. ... With the taxpayer's consent, we then modified our Offer. By letter dated July 13, 2023, the State formally accepted our new Offer: $50,000 payable within 30 days, or less than 13% of the balance due!

Tax

IRS Offer in Compromise Case #1

May 10, 2023

OUTCOME: The IRS accepted the Taxpayer's amended OIC of $14,091.00 in full settlement.

The Taxpayer is an approx. 70 year old single male. When he first contacted us, the IRS was subjecting him to bank account levies and seizures. The levies and seizures were taking place because he ow ... ed the IRS approx. $289,000 in unpaid personal income taxes, interest and penalty, none of which was in dispute. We analyzed the case and first enlisted the assistance of the Taxpayer Advocate's Office. By doing so, we were able to have the Taxpayer classified as "currently not collectible." This allowed us to immediately stop all collection action by the IRS. With the Taxpayer's assistance, we then crafted an Offer in Compromise (OIC) to settle the IRS debt. Our initial Offer to the IRS was for $5,000.00. It was rejected. We then appealed the matter to the IRS Office of Appeals. On appeal, we revised the Offer upward and were successful.

Tax

IRS Offer in Compromise Case #2

May 10, 2023

OUTCOME: We successfully negotiated an IRS tax liability of $437,000.00 down to $44,000.00 with an Offer in Compromise.

When the Taxpayer first approached us, she was a 49 year old married woman, living together with her (also-employed) husband and three minor children. Individually, she owed the IRS approx. $437,000.0 ... 0 for personal income taxes, interest and penalties. We first attempted to settle her tax obligation for $12,000.00 and, while that Offer in Compromise (OIC) was accepted by the IRS OIC Rep. working on the file, it was rejected by her OIC supervisors. We then increased the OIC to $22,000.00 with the concurrence of the same IRS OIC Rep. It was then resubmitted for approval with the same result: rejection. We then submitted an increased Offer for $44,000.00 and it was approved by the IRS! While this was a stressful, drawn-out process, both the Taxpayer and we were happy that we were still able to save the Taxpayer roughly $393,000.00!

Tax

IRS Offer in Compromise Case #3

May 09, 2023

OUTCOME: The IRS accepted our Offer of $105,000 in full settlement of a $818,000 tax debt.

The Taxpayer is a single male who works as an independent contractor in the financial sector. As the result of a divorce, he wound up owing the IRS personal income taxes, penalties and interest of ove ... r $800,000 for multiple tax years. He previously approached another attorney for help, and that attorney filed a US Tax Court petition on his behalf. After over a year, the petition was dismissed. The Taxpayer then approached us regarding a possible settlement. We worked with him to substantiate his income, necessary business and personal expenses, and his health status.

Joseph M. Callahan's Legal Cases (4)

NYS Offer in Compromise

IRS Offer in Compromise Case #1

IRS Offer in Compromise Case #2

IRS Offer in Compromise Case #3