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Reconstructing Records
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I owed $1 million to the IRS.
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As a residential builder, I completed homes – not paperwork. In 2008 when the demand for residential construction dried up, I had no income at all and quit filing taxes. A few years later I discovered the IRS was going to levy my assets because I owed more than $1 million in back taxes, interest and penalties.
Evidently, that independent accountant I hired to prepare the few tax returns I did submit wasn’t certified. Plus, I had no evidence I had paid my subcontractors because there were no 1099s issued. I had 10 crates marked “Financial Records” but I had no idea what was in any of them. I had already called a tax resolution firm but all they were going to do was make a best attempt at an Offer in Compromise with the IRS. Without documentation, they said, I would likely be paying much more than I really owed. |
I called HilRod Group, took them the 10 crates and waited. They called with some good news – they had found some usable documentation in the boxes, and they had reconciled everything they could. They created financial reports from what was there and wanted my permission to contact my banks and lenders to secure the rest of what they needed. They explained they couldn’t claim a deduction without the paperwork to back it up. They warned me that getting the records would be a time-consuming and expensive task. At the time, banks and lenders were charging between $5 and $15 per page for each request. And if a bank has been acquired as mine was (twice!), everything
gets complicated fast.
HilRod Group supplied all the reconstructed financial reports to the tax resolution firm and worked with them to negotiate the Offer in Compromise down to a fraction of what the IRS said I originally owed. The IRS agreed to the amount and, over time, I paid them off.
Now, HilRod Group takes care of our monthly accounting and pays our taxes on time.
gets complicated fast.
HilRod Group supplied all the reconstructed financial reports to the tax resolution firm and worked with them to negotiate the Offer in Compromise down to a fraction of what the IRS said I originally owed. The IRS agreed to the amount and, over time, I paid them off.
Now, HilRod Group takes care of our monthly accounting and pays our taxes on time.
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We’re here to help.
If you’re lost in the quagmire that is the IRS, contact us. We’ll be back to you within 24 hours.
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