Recent Abatement Success Stories

• An individual in Westminster, Colorado hired Clear Creek to assist with $5,762 in an errantly assessed tax liability against her and her deceased husband's 2006 Individual Income Tax return. The Associate assigned to this case requested that our client immediately send him all documentation regarding the assessment. Upon receiving these materials, the Associate discovered that the Appeal of the errant assessment was due immediately. The Associate, with diligent and forthright collaboration from our client, was able to research, draft and file an appeal with the State of Colorado Discovery Section that same day. Less than two weeks later, our client received a notice from the Colorado Department of Revenue notifying her that all assessed taxes had been abated along with all associated penalty and interest. The $5,762 balance had been completely absolved.
• A couple in Santa Rosa, California hired Clear Creek to manage a liability of $14,916 owed to the State for past due income taxes and to pursue an aggressive request for the abatement of penalties. The Associate assigned to the case immediately submitted a Penalty Abatement Narrative to the State and received a partial abatement of $407.78. Upon further review of our client's history, the Associate appealed the State's decision with additional information and arguments. The Appeals Board agreed that reasonable cause existed, and granted full abatement of the additional penalties, resulting in an additional $4,472.95 in penalties being removed.
• An individual in Winter Park, Florida hired Clear Creek to manage over $22,000 in personal income tax liabilities owed to the IRS. The Associate assigned to the case conducted a thorough review of our client's past and present tax history and discovered that there were several missing returns and past overpayments on the account. After instructing our client to file the proper returns, ensuring the credit adjustments and penalty abatements, the Associate was able to reduce the liability amount from over $22,000 to about $6,630. The Associate then entered into negotiations with the IRS to further reduce the debt to $185, saving our client nearly $22,000!
• An individual in Salt Lake City, Utah, hired Clear Creek to manage a combination of three business' liabilities totaling $150,000 owed to the State of Utah for Sales and Restaurant past due taxes. Of the $82,812.45 owed for the two restaurants which have been closed, we successfully negotiated a hardship approval which has eliminated $54,654.93 of the total balance due for the businesses; furthermore, our client was allotted one year of a non-collectable status before the state may begin pursuing the remaining $30,000. We will continue to monitor our client’s account for any potential personal assessments, and if any assessments are made to our client personally, we will endeavor to negotiate a formal resolution on the taxpayer's behalf.
• A heating and cooling service company in Attalla, Alabama hired Clear Creek to manage a liability of $36,000 owed to the IRS for past due Employment Taxes. The Associate assigned to this case negotiated an affordable payment plan for the business to repay its liabilities. The Associate then prepared a request and negotiated for the abatement of penalties for reasonable cause. The IRS granted a full abatement of all penalties and associated interest, saving our client over $10,000.
• A tiling and grouting firm in Woodland, California hired Clear Creek to manage a liability of $178,000 owed to the Internal Revenue Service. Our client was already in the process of selling his business and its assets to a new company. The Associate assigned to the case was able to facilitate the sale with no encumbrances to a company that was willing to take over business operations. The Associate then negotiated a payment arrangement for $3,000 per month to satisfy the liability in full. The Associate has also just completed negotiations on a Penalty Abatement, saving our client a total of $65,000.
• A vacuum supply company in Billings, Montana hired Clear Creek to address an IRS liability of $30,000 and a State Tax liability of $12,000. The Associate assigned to the case immediately contacted the Internal Revenue Service and determined that the majority of the liability stemmed from Civil Penalties due to failure to file W-2 forms. By filing the appropriate forms, Clear Creek negotiated the full abatement of the Civil Penalties, which totaled $26,000. Additionally, after reviewing older IRS transcripts, the Associate discovered that a Withholding Tax Return had been filed incorrectly. The Associate suggested that our client amend the tax return which was accomplished promptly. After receiving the corrected return, the IRS agreed with the amended return and removed a tax assessment, resulting in a refund to our client of over $5,000. The Associate also achieved a successful refund of penalties with the State as well. In total, our client did not have to make payments toward the liabilities, and in fact received a refund from both the State and IRS. A sign manufacturer in Penrose, Colorado hired Clear Creek to manage a liability of $40,000 owed to the State for past due Withholding Taxes. The Associate assigned to this case assisted our client by showing what returns needed to be filed, explained the importance of making Federal Tax Deposits, and assisted our client in completing a business financial statement. The Associate then began negotiations with an aggressive Revenue Officer and obtained a $750 per month Installment Agreement which is protecting our client from enforcement action. We are now in a position to draft an Abatement of Penalties narrative on the account.
• An individual in Bluefield, West Virginia hired Clear Creek to determine its current outstanding liabilities with the Internal Revenue Service and make an effort toward abating the associated penalties which would eliminate large monthly payments. Having fallen on difficult times in 2005, our client sought financing from his bank in order to support his family's modest living. After his loan application was denied, he had no choice but to run up considerable credit card debt in order to sustain a living. Crippled with debt, our client took the prudent course to settle with his credit card companies in order to get his head above water. Unfortunately, this strategy left no funding for personal Income Taxes to be paid that year. He made every effort to make payments to get back on top of his pyramiding liability, but could not overcome mounting penalties and interest on that account. A Senior Associate worked with our client to create a viable argument based upon applicable case law and provisions within the Internal Revenue Manual, including, but not limited to, those highlighting history of compliance and unforeseen circumstances. The Internal Revenue Service agreed with the Senior Associate’s interpretation of the law and facts in this case and granted full abatement of penalties, which were promptly refunded to our client.
• A plumbing company in Mississippi hired Clear Creek to manage a liability of approximately $15,000 owed to the IRS for past due employment taxes. Clear Creek successfully negotiated a reinstatement of an Installment Agreement at an affordable monthly rate and prepared, submitted and negotiated a formal Penalty Abatement Request with the IRS as well which resulted in a favorable outcome. The IRS agreed that we had established reasonable cause for two of the periods of liability, and removed approximately $8,300 in penalties and associated interest from our client's account. This was a great 'return on investment' for our client, as the amount of penalties abated was more than 3.5 times the total fees paid to Clear Creek over the life of this case.
• A healthcare service company in Southfield, Michigan hired Clear Creek to manage a liability of $80,000 owed to the State for past due Unemployment Taxes. The Associate assigned to this case was successful in negotiating an Installment Agreement in the amount of $1,393 per month. Furthermore, upon formalization of the payment plan, the Associate was able to negotiate for the abatement of $10,787.52 of interest charges on the account with the Michigan Unemployment Insurance Agency.
• An individual from Grand Rapids, Michigan, hired Clear Creek to manage a tax liability of $30,000 owed to the IRS for past due Income Tax. The Associate assigned to the case determined that the liability accrued during a period of time in which our client's now deceased husband was suffering from a long and tumultuous bout with diabetes. Throughout their 42-year marriage, our client's husband had handled all of the family finances, however, during the time they accrued the liability, he was rendered infirm and unable to do so. Our client was unaware of the delinquent tax as she was required to focus all of her energies on caring for her ailing husband. The Associate worked closely with our client to prepare a thorough Penalty Abatement request which upon the first submission removed all penalties that accrued on the account. The IRS agreed to grant our client a refund for all the penalties that had accrued over the past five years along with an interest reduction in the amount of $5,000.
• An individual in Shallotte, North Carolina hired Clear Creek to manage a personal liability of $52,000 owed to the IRS and the State of North Carolina. The Associate assigned to the case protected our client from additional 'Enforced Collection' action, successfully negotiated a release of the wage levy issued to our client's employer, and negotiated an affordable monthly Installment Agreement.
• A painting company in Leicester, North Carolina hired Clear Creek to manage a liability of approximately $235,000 owed for various types of past due taxes over many years. The company and its owners owed civil penalty liability (Trust Fund Recovery Penalty from a closed corporation), 941 liability from an active business, and individual 1040 liability. Our client had submitted an Offer in Compromise offering approximately $40,000. However, the IRS denied the Offer, claiming that the company had the means to pay its liability in full. Clear Creek worked quickly after the denial of the Offer to prepare and submit a fully-supported proposal for a Partial Pay Installment Agreement. After the case was assigned to a Revenue Officer, Clear Creek conducted several rounds of verbal negotiations and provided several written supplements to its argument along with detailed justification for the amount proposed. After much negotiation, Clear Creek was able to successfully obtain an Installment Agreement for $350 per month. The result of this Agreement is that as long as our client remains 'Compliant' with all future tax obligations, and barring a significant change in financial circumstances, our client will pay a total of approximately $34,000 on the Installment Agreement, thereby saving more than $200,000.
• A couple in Ijamsville, Maryland hired Clear Creek to manage a tax liability of approximately $125,000 owed to the IRS for Individual Income tax. The Associate assigned to this case filed an Appeal to protect our client from enforcement action. During this Appeal process our client accrued an additional $75,000 on their recent 1040 return, causing the balance to increase dramatically. Our client had been making good faith payments of $1,700 per month up until the Hearing. During the Appeals Hearing we were able to negotiate a Partial Payment Installment Agreement of $2,200.00 per month.
• An individual from Germantown, Maryland hired Clear Creek to manage a liability of $700,000. He had a levy on his bank account for $3,000. The Associate assigned to the case contacted the IRS to release the levy due to hardship. After several days of heated negotiations, the IRS was unwilling to release the levy. However, the Associate then showed 'Just Cause' to work out an Installment Agreement that was well below what they had requested. The Associate was able to negotiate to use the $3,000 in levied funds as a down payment, and to pay $1,900 each month thereafter. Ultimately, this saved our client more than $580,000 as our client's Installment Agreement will be paid off within five years per the Agreement. Per the client's request, the Associate negotiated that the payments be deducted from his paycheck so that he didn’t accidentally forget and cause the Installment Agreement to default.
• A dentistry consultant group in Colorado Springs, Colorado owed $83,699 to the IRS for delinquent Employment Taxes. The Revenue Officer refused to process our request for an Installment Agreement for over five months despite the financial statements showing an ability to pay the debt through an Installment Agreement. Further, the Revenue Officer stated that our clients were 'Noncompliant' and should have been semi-monthly depositors but were never informed of any notice indicating a status change. The Revenue Officer insisted that the only way she would accept the Installment Agreement was if the Trust Fund Recovery Penalty for $57,309 was assessed personally to the sole owner, which would ruin his reputation and affect his personal assets. The Associate assigned to the case was able to negotiate the non-assessment of the Trust Fund with the Revenue Officer and Group Manager based upon Internal Revenue Codes and get the Installment Agreement approved for $1,200 per month. We are now moving forward with Penalty Abatement Narrative negotiations. The Associate was also able to work with the Revenue Officer to get a 'Hold of Enforced Collection' for four months which allowed enough time for the 2009 return to be prepared with a Net Operating Loss carry back, saving our client additional money and preventing additional tax liens.
• A couple from Canton, Georgia hired Clear Creek to manage a tax liability of approximately $6,000 owed to the IRS for Individual Income Tax. Our client paid his liability in full and we assisted in removing penalties on his account. Through our initial submission of a request for the Abatement of Penalties we were successful in getting approximately $600 refunded back to our client.
• A fire safety service company in Hays, Kansas hired Clear Creek to manage a liability of over $55,000 owed to the State for past due Withholding and Sales Tax. The Associate assigned to this case had found that a revocation hearing was already underway at the time of being hired. The company had not been 'current' nor 'compliant' for quite some time, but had made some small voluntary payments here and there. However, the Associate also found that there was an amnesty program which would allow the State to remove all penalties and half of all associated interest upon receipt of the remaining balance if paid in full. The assigned State Revenue Agent had explained that in order to take advantage of the amnesty program the taxpayer must become 'current and compliant', but also must make payments in order to avoid another hearing procedure designed to revoke the business license. The Associate immediately advised our client that being 'current and compliant' would be the most important requirement, and that the amnesty program would be the best option to resolve the case quickly. Our client struggled to obtain this status, and had begun making regular monthly voluntary payments toward the principal in order to show good faith while we worked to keep a 'hold of enforced collection' in place until such time that our client had the funds available to pay the amnesty balance amount in full as soon as possible. The voluntary payments varied in amounts, but because our client had used our voluntary payment instructions, he was very successful in bringing down the principal balance by a few hundred dollars each month so that he could more easily full pay the balance. The taxpayer made a one time lump sum payment of $34,841, and received a total abatement of penalties and interest in the amount of $20,642.
• An individual in Maineville, Ohio hired Clear Creek to manage a liability of $22,000 to the Internal Revenue Service. The IRS had filed some returns on our client's behalf and was ready to start collecting on the debt. The Associate on the case encouraged our client to file his returns so that we could reduce the liability that he would ultimately have to pay. The Associate secured a 'hold of enforced collection' action and our client filed the returns. After all missing returns were filed, our client cashed out part of his 401K and paid the principal balance. The Associate and her team put together a Penalty Abatement outlining the situation that caused the taxes to accrue and handled strenuous negotiations with the Internal Revenue Service regarding the Abatement. The Associate successfully negotiated over $6,000 to be removed from the account, and is in the process of negotiating the remaining penalties with providing supporting documentation.
• A small federal contracting firm with its primary place of business in Palmdale, California hired Clear Creek to manage liabilities with the Internal Revenue Service and the State of California for past due unemployment taxes. The business was able to full pay their liabilities, however, there was a significant amount of penalties assessed to their accounts with both the Internal Revenue Service and the State. The Associate prepared penalty abatement requests for both the Internal Revenue Service and the State of California. Through the initial request, the Associate was able to have $22,000 refunded by the State and $64,000 abated by the Internal Revenue Service. Currently, the Internal Revenue Service has denied the refund of approximately $40,000 more in penalties, however, the Associate has prepared and filed an Appeal on the denied amounts with the Internal Revenue Service, and is currently awaiting the Internal Revenue Service's decision on the remaining penalties that were assessed to our client’s account. At this time our client has received a savings of approximately $86,000.
• An individual in Georgetown, Ohio hired Clear Creek to manage a liability of $126,000 owed to the IRS, and $13,000 owed to the State of Ohio for past due personal taxes. The Associate assigned to the case discovered that the taxpayer had neglected to file several year's of tax returns. After getting the missing returns on file, the Associate assigned to the case found that a large portion of the liability stemmed from an audit performed on our client for two particular years. The Associate appealed the decision of the audit, and successfully negotiated the decrease in tax for both years, and the release of all penalties and interest associated therewith. The Associate then made contact with the State of Ohio and negotiated with the Special Counsel assigned to the case, and had the State adjust their records accordingly. The State removed all personal liability from the taxpayer. In total, the Associate reduced our client's liability by over $128,000.
• A construction company in Dallas, Texas hired Clear Creek Consulting to manage a liability of $167,800 owed to the IRS for past due Withholding Taxes. The Associate assigned to this case immediately had our client begin making voluntary payments equal to the amount our client could afford to pay, and successfully negotiated with the Revenue Officer to allow a request for Penalty Abatement to be submitted prior to having a formal agreement for repayment on record in an effort to make the liability more manageable for our client. The Associate assigned to the case fought long and hard with the Revenue Officer and was finally able to successfully negotiate the approval of the request for Abatement of Penalties and associated interest in the amount of $55,000.
• A single-member LLC located in Macomb, Michigan hired Clear Creek to manage a liability of $129,000 owed to the IRS. Initially our client wanted an Installment Agreement for the past due balance and file a Penalty Abatement thereafter to relieve the associated penalties. Upon going through the appeals process, it was determined that our client had a substantial IRS balance and had the ability to ful-pay his liability. A lump sum payment in the amount of $53,000.00 was remitted to the IRS for the principal tax portion of the liability only; leaving penalties and interest on the account. While the principal tax payment was being processed by the government, we aggressively pursued the penalties and interest, using substantial health issues as the reason for them to be abated. Initially, the IRS was only going to abate $21,000 but through tough negotiations, the IRS agreed to a full abatement of penalties and associated interest totaling $57,841.63 leaving a minimal tax interest balance on the account.
• An individual in Aurora, Colorado hired Clear Creek to negotiate a personal tax liability owed to the IRS for $76,515 and the State of Colorado for $17,404. The Associate assigned to the case successfully negotiated with an IRS Appeals Officer to formalize an Installment Agreement for $600 per month for the liability. When our client hired our firm, he was making $500 monthly payments to the State of Colorado. The 2001 balance was an assessed amount of $16,404. Our client defaulted on his Installment Agreement with the State of Colorado in 2007, never reinstated the Agreement, and was subsequently sent to Collections. Our client had been making the $500 monthly payments, but there was no formalized Agreement with the State. The Associate successfully negotiated with the collection department to reinstate the Installment Agreement in the amount of $500 per month, payable through his bank account in an effort to keep the State from issuing a wage garnishment. During the course of the negotiations, it was determined that our client should go ahead and file the 2001 State of Colorado tax return. He really did not want to do this as he felt he would not get anywhere with it, however, we continued to work with him until it was completed and filed. We received notice from the State of Colorado that due to the filing of the 2001 State return, our client's liability was paid in full with the State and he would receive a refund of $9,904.79.
• A truck repair company in White County, Arkansas hired Clear Creek to manage a liability of $38,598 owed to the State for past due Sales Tax and Withholding. The Associate protected the Corporation from forced business closure and successfully negotiated a reduction in penalties and interest. Specifically, the Associate was able to negotiate the Abatement of Penalties, resulting in a savings of $9,098 or 23.5% of the liability! Furthermore, the Associate successfully negotiated an Installment Agreement of $626.79 over a term of 60 months for the residual liability.
• A telephone and data line installation company in Omaha, Nebraska hired Clear Creek to manage a liability of $11,000 owed to the IRS for past due withholding taxes. The Associate assigned to this case began to work with a very aggressive Revenue Officer in order to keep enforced collections at bay. As the Revenue Officer was unwilling to work with us, the Associate recommended that our client full pay the liability as he was able to do. After this, the Associate prepared a thorough Penalty Abatement request which we then fought through Appeals, holding an Appeals Conference to argue the case. The Appeals Board agreed that reasonable cause existed for the Penalty Abatement, and granted an Abatement of Penalties and associated interest, earning the client a refund of over $5,000.
• An individual in Howard Beach, New York hired Clear Creek to manage a liability of $11,000 owed to the IRS for past due individual income tax. The Associate assigned to this case advised our client that there were two missing returns with the IRS that needed to be filed. The Associate also provided our client with the wage and income information in order for the client to file these missing returns. Once the returns were submitted, the Associate also submitted an Abatement of Penalties request. We were able to negotiate the Abatement of $2,877 in penalties and interest on the 1999 tax year due to our client's filing history. The Associate then proceeded to file an Appeal on the denied time periods. During the scheduled hearing, the Appeals Officer agreed to abate additional penalties and interest on the 2001 and 2005 tax years which totaled $3,789. When all the returns are filed, our client will receive a refund totaling $11,506.
• A construction and grading company in Villas, North Carolina hired Clear Creek to manage a liability of over $46,000 in past due sales taxes. The company had independently set up a payment agreement with the State but defaulted shortly thereafter and was penalized heavily for the misstep. The Associate assigned to the case determined that a standard Installment Agreement would not be feasible for this client due to the cyclical nature of its business, e.g. more income was generated during the summer than in the winter months. The Associate first devised and negotiated into place a plan whereby this company would pay a very small amount towards its liability during the winter and make up for this during the summer. The Associate then worked with the State Revenue Agent to secure a release of all penalties and associated interest on the account, saving our client in excess of $8,500.
• An individual in Fishers, Indiana hired Clear Creek to manage a personal liability totaling over $62,000. Clear Creek Consulting successfully kept the IRS from seizing our client's property for nearly six months through various processes of appeals and submittal of current financial statements. Our client recently sold her home and was able to pay her personal liability in full. Shortly after our client's liability was paid, the Associate submitted a Penalty Abatement request to the IRS in an effort to release penalties accrued from the period of liability. This resulted in a full abatement of all penalties totaling approximately $7,000.
• A waste management company in Empire, Colorado hired Clear Creek to resolve a $39,000 liability with the IRS. Our client had made several payments to the IRS but had incurred a large amount of penalties and interest. The Associate drafted and submitted a Penalty Abatement Request to the IRS in order to have those penalties and interest removed. Through intensive research, the Associate was able to cite several cases and statutes relevant to our client's situation. The Penalty Abatement Request was successful for one of the two periods of liability and the Associate was able to have almost $30,000 abated, reducing our client's remaining liability to almost nothing. With no further liability to worry about, our client has gained some much needed peace of mind. With more penalties to be abated, however, the Associate filed an Appeal to the denial of the abatement for other period of liability which we have been told will result in a refund check being sent to our client for over $28,000.
• A construction company in Dallas, Texas hired Clear Creek to manage a $167,000 tax debt owed to the IRS. The Associate assigned to the case was able to not only negotiate a hold of enforced collections, but had negotiated with the Revenue Officer to complete the Abatement of Penalties of over $45,000 while the client made voluntary payments in an act of good faith to bring the total balance due down to allow for a more affordable Installment Agreement. Once the Abatement was completed, we were able to complete negotiations for a formalized Installment Agreement for the remaining balance due in the amount of $2,000 per month.
• A self-employed investment broker in Austin, Texas had hired Clear Creek without filing his last five 1040 U.S. Individual Income Tax Returns. The IRS had filed them for him assessing a liability of over $250,000. The Associate assigned to this case convinced our client to file the delinquent returns while we held off all Enforced Collection Action against our client. The balance due after all returns had been filed was now reduced to $155,000. Our client was able to pay a lump sum of $95,000 which took care of the tax portion of the balance. The client did not want to pursue the penalties or interest as he felt he was responsible for the debt, and didn't want to fight the additional fees. He wanted to pay the remaining balance on an Installment Agreement and be done with it, however The Associate explained the reasons that caused the taxes to become delinquent and the reasons he was unable to file the returns, and advised that these reasons were clearly reasonable cause and he could secure an abatement of the assessed penalties. Our client agreed to let us submit a request for abatement with his tax payment. Clear Creek then put a hold of all Enforced Collection Action while aggressively negotiating the Penalty Abatement. After three months of negotiations, the IRS agreed that it was reasonable cause thus reducing the balance due by over $65,000. Our client then received checks for his overpayments, and is now completely tax debt free and is forever grateful.
• A publishing company in New Jersey hired Clear Creek to manage two liabilities owed to the State. The Associate assigned to this case submitted a Penalty Abatement to the Department of Revenue and the balance of approximately $3,000 associated with failure to file penalties was completely abated. The liability with the Department of Labor had a balance approximating $10,000 with several missing returns. This liability accrued due to a flood, and proper documents to recreate the missing returns could not be found. This Associate negotiated with the Department of Labor to pardon our client from filing all missing returns due to the records being destroyed. As part of that agreement, we also negotiated with the Department of Labor to waive all penalties arising from his failure to file these returns. Furthermore, we worked diligently matching cancelled checks from the client to payments received by the Department of Labor. Thus far, we have found over $5,000 worth of payments that have not been properly posted to our client's account. We have submitted a request to the state to locate these payments and have them applied to the Department of Labor balance. While these payments are being located and in an attempt to curb further accrual, our client has been set up on a monthly Installment Agreement with the Department of Labor for $500 per month.
• A construction company in Lynden, Washington hired Clear Creek to resolve an IRS liability of $158,000. With the advice of our Associate, our client sold some equipment and made a $95,000 payment to the IRS. This Associate then secured an affordable Installment Agreement of $1,800 per month and submitted a Penalty Abatement which secured a $49,000 abatement of penalties for our client.
• A construction company in Brooklyn, New York accrued a $109,000 liability owed to the City of Brooklyn. The Associate assigned to this case submitted our client's outstanding returns and negotiated a penalty abatement securing $16,000 in tax abatements from the city for our client.
• An individual in Independence, Kansas hired Clear Creek to negotiate an Installment Agreement, and abate associated penalties for a $9,000 liability owed to the state. In this instance, our client requested that we try to get penalties abated before a resolution to the tax issues was formalized. This Associate requested our client's tax returns and filed a petition with the state. During the negotiation of the petition to release penalties, the Associate was able to reduce the total liability to $3,000 effectively reducing her total liability by two-thirds. An affordable Installment Agreement was then negotiated for $300 per month.
• A construction supply company in Tennessee hired Clear Creek to manage a $70,000 liability owed to the IRS and a $110,000 owed to two state taxing authorities. The Associate assigned to this case worked with our client's accountant to get the business, which was inherited from the client's father, back into good standing with the IRS, the State of Kentucky and the State of Tennessee. Once all balances were paid in full we submitted our request for penalties to be abated and refunded. The state of Kentucky agreed to refund our client $4,100, and the state of Tennessee refunded $2,500. The IRS initially rejected the penalty refund request flat out. With threat of an appeal, the agent decided to refund almost $10,000 to our client. This Associate then filed an appeal to the other penalties, and waited for the response. In the end, the Appeals Officer agreed with our position and granted a final refund of $4,500. All told, the IRS granted nearly $15,000 in refunds without a shred of evidence proving reasonable cause.
• An individual from Columbus, New Jersey hired Clear Creek to manage a $92,000 tax liability owed to the IRS. The Associate investigated this case, and discovered that the IRS had filed a Substitute for Return on the relevant tax period, including our client's entire 1099 income from his sole proprietorship business. The Revenue Officer on the case was adamant that he would begin levying our client, until the Associate pointed out that if our client filed all of the missing returns we would be willing to enter into an Installment Agreement to satisfy the liability. The Revenue Officer agreed that filing all returns would be a good idea and gave us a month to get the returns prepared. We filed two returns that were missing, creating $8,000 worth of refunds for the client and filed an original return to replace the Substitute for Return. The Revenue Officer was very unhelpful at that point and did not forward the original submission on to the proper department for processing, so we ended up submitting the return three times over the next couple of months to get the original return to the IRS. The IRS took about six months to process the original return, but finally completed the processing. The return resulted in a $10,500 refund to the client. We are still working with the IRS to see about some additional withholding claimed by our client, which could result in another $3,500 in refunds, but all told the Associate was able to reduce a $92,000 liability into $18,500 worth of refunds, with possibly more coming.
• A transportation company in Temple, Texas hired Clear Creek to negotiate a $19,473.56 IRS liability. Nearly all of this liability was in Civil Penalties due to the fact that wages on our client's 941's for four tax years did not match the W-2's for those years. Upon review of all payroll records for the tax years in question, we determined we needed to supply the IRS with W-2's and 941c's. Though two of the returns were not processed by the IRS due to statute of limitations, all civil penalties were abated reducing our client's balance to zero.
• An assisted living business in Alaska hired Clear Creek to manage a $240,000 liability owed to the IRS. Several months ago, an affordable Installment Agreement was negotiated at $5,500 per month, however the Associate also submitted a Penalty Abatement request to which the IRS never responded. After several submittals, the Associate contacted Taxpayer Advocate and after reviewed, $64,090.61was abated.
• An electrical contractor in Tacoma, Washington, hired Clear Creek to manage a $200,000 owed to the IRS with the Trust Fund portion of this liability having been assessed to our client personally. Because our client's business was seasonal, our client could not make the already negotiated $7,500 per month Installment Agreement payments, so our client defaulted. Our client decided to sell a personal property to fully pay the Trust Fund portion of the liability, which was approximately $58,000. At that point, the Associate negotiated an Installment Agreement of $2500 for the remaining business liability of approximately $135,000, and submitted a Penalty Abatement request. The Revenue Officer originally told the Associate that he would be able to abate approximately $30,000 in failure to file penalties, then called back and said his manager denied our request. We filed an appeal, and followed up with a call to the Revenue Officer, who then met with his manager again. The Revenue Officer then agreed to abate approximately $30,000 in penalties after all.
• An HVAC company in Albion, Michigan made a mistake of writing the EIN of his other company that did not owe taxes, to pay down a debt on the business that owed $55,000 to the IRS. He then wrote another check without cancelling the first which put his company's cash flow in jeopardy. The Associate assigned to the case not only got the funds returned in a matter of days, verses months which is what the IRS had originally stated, the Associate also managed to get penalties abated for three full years. Once this was done, our client not only received a $35,000 check on this first day of contact which was an overpayment, but a refund of $18,490. Thus, for two checks being cashed of $51,000, the client has now received a refund of $53,490.
• A restaurant grease recycling business in IL owed $190,000 from 2004 through 2006 to the IRS when he hired Clear Creek. Once hired, the Associate immediately drafted and submitted a Penalty Abatement Narrative to the Revenue Officer. The Revenue Officer agreed to abate $60,000 in penalties, lowering the liability to $130,000. Because the Revenue Officer only abated half of what we were asking, we appealed the other tax periods, and negotiated with Appeals to abate an additional $40,000. The taxpayer had already paid penalties for tax periods from 2001 - 2005, so we then submitted a request for a refund of penalties paid for this time period. The Appeals Officer agreed to abate $35,000 worth of penalties, and once interest on these penalties was calculated, our client's current liability will drop to less than $20,000. If the client cannot pay this balance in full, we will submit an Installment Agreement. In all, we have saved our client $170,000, without having to negotiate a formal agreement or provide financial statements.
• A furniture business in Grinnell, Kansas hired Clear Creek to manage an $18,500 liability owed to the State of Kansas. The Associate assigned to this case negotiated that if the client could full pay the liability, then all penalties and interest would be dropped. Unfortunately, our client was unable to come up the funds to full pay the base tax and missed two deadlines. Nonetheless, the Associate moved the case forward by proposing an affordable Installment Agreement and the State Revenue Agent still agreed to dropping all penalties and interest saving our client $7,500.
• A general contractor in Newberry, Florida hired Clear Creek to resolve a $62,000 liability owed to the IRS. When hired, the assigned Revenue Officer was moving to lien this company and levy their bank accounts immediately. Once it was explained that we were here to help in the resolution of this issue, the Revenue Officer warmed up and did not place a lien on the business, and gave the assigned Associate three weeks to gather some information. During this process, we put together a Penalty Abatement Narrative for $90,000 in other taxes that the client recently full-paid prior to hiring our firm. With this Penalty Abatement being accepted, our client received a refund in the amount of $65,000 which will more than full pay the current balance and put some money into our client's pocket. Furthermore, we are expecting that some portion of the associated interest will be refunded as well.
• An automotive repair company in Liberal, Kansas hired Clear Creek to manage a $251,484 state tax liability. The Associate assigned to this case negotiated a penalty abatement in the amount of $167,330.67 reducing our client's liability to $84,183. The Associate then advised our client to make a lump sum payment of $65,000 so this business could make affordable $500 monthly payments for 38 months.
• A delivery service company in Columbus, New Jersey hired Clear Creek to manage a $93,000 outstanding tax liability owed to the IRS based on a substitute return the IRS filed against our client. Once the Associate understood the issues at hand, he assisted our client in filing an outstanding tax return which once filed, showed that the IRS actually owes our client $23,000. Needless to say, our client is thrilled to have this issue behind him and actually have money due to him.
• A tire and equipment business in Marion, Kentucky hired Clear Creek to resolve a $15,000 liability owed to the State. In our attempts to resolve this issue, the Associate assigned to this case negotiated an Installment Agreement with the State, however, our client could not afford the payments so we attempted to put together an Offer in Compromise. In the meantime, the Associate negotiated with the state to reduce the debt to $3,300 which they did, saving our client nearly $12,000.
• A commercial piping company located in San Francisco, California hired Clear Creek to abate penalties associated with a $29,146 liability owed to the IRS. The Associate assigned to this case negotiated a refund of $6, 065.11 for our client.
• A Dothan, Alabama fabrication company hired Clear Creek to abate penalties on an IRS liability that had already been paid in full. Although our first submission was denied, the Associate assigned to this case supplied additional information bolstering our argument for reasonable cause and the Revenue Officer abated $8,994.75. This amount was well above the fee charged by Clear Creek.
• A window service business in Carrollton, Texas hired Clear Creek to abate penalties associated with a $40,000 liability owed to the IRS. The Associate assigned to this case negotiated a full abatement of all penalties which totaled $15,110. A snack food distributor in Jeff, Kentucky hired Clear Creek to resolve a $93,000 liability owed to the IRS. Without even having a formal resolution in place, the Associate assigned to this case negotiated a full abatement of $17,000 associated with late deposit and late payment penalty charges.
• The owner of a marble company in Bluff City, Tennessee hired Clear Creek to abate penalties associated with an IRS liability of $33,033.19. Within several weeks, the Associate assigned to this case negotiated a Penalty Abatement in the amount of $26,787.04. The remainder of the balance ($6,246.15) is to be paid in small monthly Installment Agreement payments.
• A New York clothing designer hired Clear Creek to manage a $60,000 IRS liability stemming from 2001, and wanted an Installment Agreement. The Associate assigned to this case protected him through several Installment Agreement defaults, threats of levy and seizure until he was able to refinance some property and fully satisfy his liability. Our client's balances stem from three different tax periods. Once the liability was paid in full, we submitted requests for refunds. Two out of three tax periods were accepted for refunds, and the taxpayer will receive a total of $13,000 back in refund checks.
• A computer systems business in Toms River, New Jersey hired Clear Creek to formalize an Installment Agreement for an IRS liability of $38,513. Not only did the Associate negotiate an affordable Installment Agreement for our client, the Associate also managed to abate $6,945.098 in penalties, and we are in the process of negotiating another $7,000 in penalties through Appeals.
• An ice arena in Texas hired Clear Creek to renegotiate the findings of an audit that found our client was behind $39,829.84 in sales tax obligations. Furthermore, our client did not know about this audit as his general manager had signed off on the findings without ever telling the owner that an audit was being conducted. As the time to protest had lapsed when Clear Creek was hired, the Associate nonetheless, negotiated that a $10,000 bond and associated penalties be abated. This negotiation saved our client $13,170.16.
• A community outreach and daycare facility in Albany, Georgia hired Clear Creek to abate penalties that had accrued on an IRS liability of $70,000. When retained, our client had already filed bankruptcy and paid the outstanding tax balance in full. Within weeks, the Associate assigned to this case submitted a Penalty Abatement on behalf of our client who received a check back from the IRS for $57,000.
• An investment housing company in Roswell, New Mexico hired Clear Creek to resolve an outstanding liability of $240,000 owed to the IRS. Over time, the Associate assigned to this file built a relationship with the Revenue Officer and basically told his contact that we could either voluntarily shut the company down and submit a Certificate of Discharge for the assets and reopen the entity, or streamline this process to get it off the Revenue Officer's desk. In short, the Revenue Officer agreed to the streamlined process and agreed to abate over $60,000 in penalties and over $50,000 in interest which is rarely done, but in this case the taxpayer was misled by a previously assigned Revenue Officer, and therefore special consideration was given. Negotiating an end to this tax situation in this manner saved our client considerable amount of time and energy and he can now concentrate on running his business verses, shutting it down and reorganizing the company.
• A farmer in Maryland hired Clear Creek to not only manage and resolve a $55,000 liability owed to the IRS, but to protect the family business from enforced collection until the business could be turned around. Not only did we protect the business, we negotiated approximately $8,000 in penalty abatement relief.
• A contractor's supply company in Templeton, CA hired Clear Creek to reduce the penalties associated with a $150,000 liability owed to California's State Board of Equalization. The Associate assigned to this case negotiated a full abatement of approximately $20,000.
• A recycling company in Ennis, Texas hired Clear Creek to resolve a liability of $392,333.07 owed to the IRS. Over the course of managing this case, the client defaulted on an Installment Agreement and declared bankruptcy, however, through the Taxpayer Advocate Office, the Associate assigned to this case still managed to abate $107,894.70 in penalties which were refunded to our client.
• An appraisal business in Preston, Missouri hired Clear Creek to resolve a liability of $15,000 to the IRS. The Associate assigned to this case consulted our client on ways to reduce overhead so the company could manage an affordable Installment Agreement that was eventually formalized. The Associate then battled with the IRS to reduce penalties associated with this liability. After much negotiation in the Appeals Division of the IRS, we eventually had $4,857 reduced from the liability.
• A Nursing home in Valdosta Georgia hired Clear Creek to abate penalties and associated interest on a liability of $32,000 that had already been paid in full to the IRS. Within several weeks, the Associate assigned to this file received a refund in the amount of $10,016.46 for our client.
• The owner of a now defunct consulting company located in La Canada, California hired Clear Creek to manage an IRS liability of approximately $700,000. Although we recommended that our client file for bankruptcy, we have already negotiated that $100,000 of the Trust Fund amount not be assessed against this individual. When our client is out of bankruptcy, we will wrap up the liability by filing an Offer in Compromise.
• An athletic clothing company in Manchester Maryland hired Clear Creek to resolve a $23,000 liability owed to the IRS for failing to file W-2's and W-3's in a timely fashion. Upon being hired, the Associate assigned to this case filed our Power of Attorney with Appeals and outlined our client's position, the Appeals Hearing Officer abated $22,000 in penalties.
• An electrical contracting company in New Jersey hired Clear Creek to manage a $600,000 liability to the Internal Revenue Service. The Associate assigned to this case negotiated a one year Tiered Installment Agreement at $1,000 so the company could build up its receivables and become a more stable company. The Associate also negotiated a Penalty Abatement of $120,000 and we are in the process of Appealing for more penalties to be abated.
• Once we negotiated one convenient and affordable Installment Agreement for a holding company that owned and operated nine entities that had fallen behind, the Associate assigned to this case negotiated the full refund of $170,000 for all penalties and associated interest for this client. While the Associate was managing this case, it was imperative that the State of Georgia not file any tax liens against our client which we were able to prevent, in addition to negotiating an affordable State Installment Agreement for the balance owed to this taxing authority.
• An Illinois metal fabricating company retained Clear Creek to abate $85,000 in penalties that had already been paid to the Internal Revenue Service. Within two months, the Associate assigned to this case negotiated a full abatement of all penalties for this client.
• An Oregon-based copy shop retained Clear Creek to manage its ongoing problems with the IRS. Within weeks, the Associate assigned to this file settled an outstanding business creditor issue for $8,500 on a debt of $26,314, and managed to reduce the company's liability to the IRS from $40,000 to $16,000 even though the client had $100,000 in the company's checking account and another $50,000 in personal investments.
• A New Jersey-based floor coverings company retained Clear Creek to abate penalties associated with its liability to the state. Within a week, the Associate assigned to this file had negotiated a loan for our client and full-paid the liability positioning the client for an immediate abatement of penalties. The client is now debt free to the state and received the maximum penalty abatement permitted by the state.
• An Arkansas-based waste management company retained Clear Creek to abate penalties on an outstanding state liability of $601,185. Within a few weeks, the Associate assigned to this file negotiated the release of $125,589 in penalties for our client.
• A Brooklyn, New York day care retained Clear Creek to resolve a $25,000 New York State Workers Compensation Insurance issue. Within weeks we negotiated a settlement down to $10,100 to be paid in five monthly payments.
• A framing and construction company located in Grand Rapids, Michigan retained Clear Creek to resolve a nagging $40,000 IRS liability. Within weeks, we consulted our client to maintain compliancy, and negotiated a Tiered Installment Agreement for the balance of their liability that was reduced by $13,000 through filing and negotiating an effective Abatement Narrative. We argued through a rarely used section of the Internal Revenue Manual, IRC Section 6656, that a change in a company's deposit schedule is grounds for this abatement.
• A Danville Kentucky interior designs firm retained Clear Creek to abate penalties and to obtain an affordable payment plan. Within a few short weeks, the Clear Creek Associate negotiated an abatement of 100% of the penalties which consisted of 61% of the liability and now this client is on an even more affordable payment plan for the reduced balance.
• A high end automotive repair shop in Tampa Florida retained Clear Creek to negotiate a payment plan and to abate the penalties associated with this a Florida state liability. Within a few weeks, the associate assigned to this client negotiated a Tiered Installment Agreement with payments growing over time to match the client's financial condition over the next several months. This Associate also recovered 100% of the penalties associated with this liability.
• Within weeks of representation, a Kentucky HVAC company had their preexisting state Installment Agreement payments negotiated from $2,600 to $1,300 in addition to having $27,000 of penalties abated.
• A Tennessee trucking company hired Clear Creek to negotiate an Abatement of Penalties. This client received a formal abatement of ALL penalties approximating $50,000.
• With the representation of Clear Creek, a Kentucky health supplement store received an abatement of penalties worth $7,100.
• With the representation of Clear Creek, a Utah pizza restaurant received an abatement of penalties worth $4,500.
• A Texas medical supply company hired Clear Creek to negotiate an Abatement of Penalties. In August 2004, this client received a formal Abatement of Penalties approximating $73,000.
• Within 30 days of representation, a Virginia welding company received a 100% abatement of ALL its penalties charged against this company by the Internal Revenue Service. The associate assigned to this file has also negotiated an affordable Installment Agreement to address the remaining balance.
• A contracting company hired Clear Creek to abate its penalties owed to the State of Montana. Within weeks, the associate assigned to this file negotiated the release of ALL penalties associated with this tax liability.
• After a thorough examination of a dentist's tax issue in Oregon, the Senior Associate assigned to this file was able to negotiate a penalty abatement of 93% of the penalties associated with this debt and formalize an affordable Installment Agreement within weeks of representation.
• Within one week of representation, a Montana excavation company received a full abatement of State penalties and is now on an affordable Installment Agreement for the balance.

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