GA Client Converts Service and Gets Better Resolution than Expected

Posted 8/14/2008 1:48:21 PM

Mr. Braddy of Arabi, Georgia originally hired Roni Lynn Deutch, A Professional Tax Corporation to pursue an Offer in Compromise. However, shortly thereafter, the IRS changed the rules concerning Offers in Compromise, which negatively affected Mr. Braddy’s potential offer. Consequently, Mr. Braddy became a perfect example of a situation that arises occasionally in the course of our representation of our clients: service conversion.

“When we first spoke to Mr. Braddy, we thought he would be an excellent candidate for an Offer in Compromise,” notes Ryan Carrere, the attorney that worked on Mr. Braddy’s case. “However, once our legal staff reviewed more detailed financial information and documentation provided by Mr. Braddy, it became apparent that he was better qualified for placement on the IRS’ Currently Not Collectible status. This would immediately stop IRS collection activity and could lead to his liability expiring completely.”

Based upon all of the information Mr. Braddy provided during the initial telephone interview, it appeared that he could qualify for an Offer in Compromise because between his business expenses and his vehicle payment and insurance, Mr. Braddy barely had sufficient funds to meet his necessary living expenses. However, shortly after Mr. Braddy retained our law firm, the IRS updated some of its maximum allowable standard expense guidelines. Because of this update, Mr. Braddy had a net available income that would be calculated as part of his minimum Offer in Compromise. This, coupled with some available equity in assets, made the minimum Offer in Compromise an amount Mr. Braddy could not afford.

“As a result, Mr. Braddy first elected to pursue an Installment Agreement rather than submit an Offer,” continued Carrere. “However, when I contacted the IRS, I also conducted a review of the account and found that the Client’s account could be placed into Currently Not Collectible status. Once the resolution took effect, it virtually ended all collection activity against Mr. Braddy.”

“All my questions were answered in timely manner,” notes Mr. Braddy. “The attorneys were able to give me correct information on my tax problem. If my financial status changes and I need to hire another tax firm I will not hesitate to contact Roni Deutch.”