I.S. Law Firm is proud to announce that we successfully challenged and prevented over $24,000 in overdue taxes, penalties and interest which IRS assessed and attempted to enforce against our client. As a result of zealous work on behalf of our client and pursuit of the matter in the United States Tax Court, attorneys at I.S. Law Firm secured a waiver of all assessed taxes, penalties and interest that were demanded from our client. We successfully overcame many challenges, including proving dishonesty of our client’s former employer in reporting the client’s income from 2001, poor representation by our client’s tax consultants, and the IRS’s refusal to drop the enforcement action against our client.
The case concerned our client’s income taxes for the year 2001. Our client’s employer submitted fraudulent Tax Form 1099-MISC (miscellaneous non-employee compensation) to the IRS, deliberately overstating our client’s 2001 income. As a result, the IRS estimated our client’s 2001 income to be over five times greater than it actually was, and demanded our client to pay significant amount of overdue taxes and penalties. In 2008, our client received a notice of enforcement action, in which the IRS demanded over $24,000 in overdue taxes and penalties.
Our attorneys successfully argued that our client had fully reported his 2001 income and owed no additional taxes. We demonstrated that our client’s former employer misreported the client’s income for 2001. The challenge was to collect almost 10 years old evidence to support our position. We contacted the banks where the client maintained his accounts in 2001, we contacted client’s former co-workers and other witnesses to gather as much evidence as available to support our client’s position. We presented to the IRS notarized affidavits from a number of witnesses who worked with our client for the same employer in 2001 or were aware of our client’s income during that period. We showed that our client worked for the employer in question only for six months in 2001 and earned only the amount of income he reported on his 2001 tax form. Additionally, we were able to obtain information that the employer who misreported our client’s income was later arrested and jailed for unrelated fraudulent activity.
Even with this much evidence in favor of our client’s innocence, the IRS refused to drop the enforcement action, prompting attorneys at I.S. Law Firm to file the case with the United States Tax Court. As a result, we were able to convince the IRS to finally cease the enforcement action against our client, relinquishing the claims for additional taxes owed and waiving all penalties and interest payments associated with this matter.
At I.S. Law Firm, the success of our clients is our priority. We employ aggressive and innovative litigation strategies while maintaining the highest degree of integrity and professional responsibility to ensure that our clients receive the most effective representation possible. For a case-specific evaluation and consultation, please contact us: (703) 527-1779, or by e-mail: law@islawfirm.com.
