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The client had submitted an offer in compromise on a $1.2 million debt. The IRS rejected the offer and determined that the client could fully pay. J. David Tax Law appealed the rejection. Through the appeal, the IRS agreed to compromise the $1.2 million debt for only $60,000.
The IRS erroneously sent our client a refund of almost $500,000, and the IRS wanted the refund returned. As J. David Tax Law worked with the IRS, the client repaid a portion of the refund. However, did not repay the entire amount, the IRS threatened to file a lawsuit against him. After months of threats and collaborating with the IRS revenue officer, the IRS finally did file a lawsuit, except they did not act quickly enough. The government was unable to collect the remaining amount as the lawsuit was filed past the statute of limitations.