Case Studies

Attorney Lazarow Saves Elderly Couple’s Life Savings

A couple in their 80's owed the IRS in excess of $250,000. They were both in poor health and under constant care of doctors. Both were eventually unable to care for themselves and required constant daily care by private caregivers in their home. Although both were on Medicare, their caregivers, and other needs that they had, were not covered. Their monthly medical and living expenses were very costly. They did have life savings in excess of a million dollars, but needed their money to provide for their exceptional needs. The IRS wanted their money.

Attorney Sheldon Lazarow filed a rare type of Offer in Compromise known as an Offer for Effective Tax Administration. This is one of three types of Offers in Compromise available to delinquent taxpayers. In this type of Offer there is no doubt that the tax owed is correct and that there is potential to collect the full amount of taxes owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable. It is extremely rare that the IRS accepts this type of Offer in Compromise.

After over a year of negotiating with the IRS Offer in Compromise unit and the IRS Office of Appeals, Mr. Lazarow was successful in getting the IRS to accept a lump sum payment of approximately 10% of the tax that was owed.