Offer in Compromise Successes

$181,721 Due

IRS settled for $10,600

(5.8 cents/$) taxpayer kept new car

$39,357 Due

IRS settled for $1,200

(3 cents/$)

$363,293 Due

IRS settled for $16,096

(4.4 cents/$) taxpayer kept new SUV

$46,124 Due

IRS settled for $2,700

(5.8 cents/$) taxpayer, a contractor, kept construction equipment and vehicles

$97,412 Due

IRS settled for $4,000

(4.1 cents/$) disabled taxpayer kept IRA and new car

$33,637 Due

IRS settled for $3,800

(11 cents/$) taxpayers kept real estate and new cars

$394,718 Due

CT DRS settled for $5,000

(sales and withholding tax due by family business)

(1.2 cents/$) taxpayers kept their home and their business remained open

$6,340 Due

IRS settled for $100

(1.5 cents/$)

Contested Audit Successes

The IRS has a rule that you have to report an inheritance you receive from outside the US.  It doesn’t charge tax, but it wants you to file a return.  Taxpayers didn’t know this, and their accountant didn’t tell them.  They didn’t file the form.  The IRS charged them $55,346 in penalties for not filing the form, even though no tax was due.  Attorney Brookes filed an appeal.  The result: the IRS made a full concession and removed all penalties.

_____________________________

During an audit, the IRS found errors in the taxpayers’ returns.  It charged them $18,430 in penalties for reporting their income the way their accountant had done on past tax returns.  Attorney Brookes challenged this.  The result: the IRS made a full concession and removed all penalties.

_____________________________

IRS claimed taxpayers’ business was a hobby—Attorney Brookes filed a Petition in US Tax Court to challenge this.  The result: the IRS made a full concession and walked away without going to trial.  Taxpayers won.  No tax due.  No penalties due.

_____________________________

IRS charged husband and wife over $13,000 in tax and penalties for mistaken IRA withdrawal—Attorney Brookes filed a Petition in US Tax Court to challenge this.  The result: the IRS made a full concession and walked away without going to trial.  Taxpayers won.  No tax due.  No penalties due.

_____________________________

Taxpayer didn’t file returns for many years.  The IRS caught up with him and decided the total due was $532,466. Attorney Brookes filed an appeal.  The result: new balance due of $113,761.  She got $17,901 in penalties removed.  She also got the Taxpayer a payment plan of $400 a month with the remaining balance due in a later balloon payment; the taxpayer got to keep his rental properties, his retirement savings and his rental income.