We know that unexpected circumstances happen as a business’ days, weeks, and months go by. No matter the owner or manager’s best intentions or how dedicated they are to staying in front of a tax debt issue, things can fall apart faster than a slider thrown from the mound by a lefty in the major leagues. No matter what happens, as long as the business is focused on addressing the tax account issues, there is ALWAYS a solution. Let me share some of the hiccups we encountered with one client and how we rectified them on the fly…

We had a construction company retain our representation services to handle a State of California Employment Development Department (EDD) tax debt, among other issues, in September of 2022. The owner had previously been trying to handle the tax debt issues on his own and set up an Installment Agreement to handle past-due taxes owed of over $22,000.00. When they brought us on board, the business owner disclosed that they had a spotty record with the EDD, and the company was defaulting on the most recent agreement to address the debt because of a new balance recorded for the 2nd Quarter of 2022.

During our initial calls with the EDD, we were advised that we could re-establish the Installment Agreement if we could bring the 3rd Quarter into compliance, along with a few other hoops they wanted us to jump through. Over the next few days, we negotiated terms to meet the EDD’s demands, and the parting words received from the Tax Compliance Representative assigned to the case were, “Please know that this is the last time we will give this company another chance. They have already defaulted on two prior agreements, and we won’t tolerate this happening again. If it does, we will suspend their contractor license.” Smooth sailing from there, right? Wrong…

In October of 2023, our client called me and said, “Morgan, you are going to kill me… I did it again with the EDD.” He filed the 3rd Quarter 2023 return with a balance due. Luckily, we got in front of the problem by calling the Tax Compliance Representative and falling on the sword before the balance was processed through the system, triggering the nasty collection consequences from starting. To say the representative wasn’t happy to hear from us was an understatement, but she was happy to know we were focused on the problem and reaching out before the crap really hit the fan.

Prior threats be damned, we were able to prevent the contractor license from being suspended and were successful with reinstating the Installment Agreement once again. Giving you full disclosure, however, I have to say that it wasn’t easy.

The first time an Installment Agreement is established to address a past-due tax debt is relatively straightforward. You may argue over the monthly payment amount and how long the agreement timeframe is finalized, but you can get there. Establishing a second Installment Agreement is much more complicated if that agreement defaults. The tax agency will want to shorten the monthly payment period, given the unpredictability of your commitment to address the debt, and will place your financial picture under tougher scrutiny. If that agreement defaults, you better put on a helmet and shoulder pads because you are going to get into a tough battle before a third agreement will be considered. This case was no different! But, despite the increased taxes added to the total debt of $12,000, we were able to finalize the third agreement at $110.00 per month more than the original had been established for, and were able to do so without the contractor’s license being suspended.

Having a trusted and experienced tax debt resolution professional defending you, your business, or your client’s best interest can be the difference in how a collection case progresses. As Jan Hellriegel said, “If everything was super easy and I didn’t have to face the odd bump in the road or difficult time, then I guess my ‘resilience muscles’ wouldn’t be in such great shape!” If you get into a sticky situation, reach out to the team at Golden Lion Tax Solutions… we have cultivated excellent “resilience muscles” while representing our clients before the IRS and state tax agencies. We will always push for the best solution possible, given your tax debt(s) owed and your financial condition, no matter what has happened in the past.

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Trust. Protection. Wisdom.

Your future and your family deserve the right protection. Golden Lion Tax Solutions will be your advisor and confidant throughout the entire journey. We guarantee to offer you or your business best-case solutions for your tax debt. We are by your side every step of the way. Start now and get your life back.

For help with your tax debts, email contactus@goldenliontaxsolutions.com or call 833-LION-TAX (833-546-6829)

Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate solution to fit your situation.