Case Studies

Lazarow Gets Arizona Corporation Held “Currently Not Collectible” for Payroll Taxes Owed

 We just heard from an IRS Appeals Officer that she agreed to place a small corporation owned by a married couple into “Status 53” (Currently Not Collectible). The corporation was struggling due to health problems of one of the owners. The IRS Appeals Officer was presented with the Profit and Loss statement of the company, but would not believe the numbers she was provided. Although IRS appeals officers are not charged with the duty of auditing companies in a tax collection case, this one was improperly trying to do just that. We piled on the evidence so that she couldn't question anything in the company's books. Eventually she relented and put the company into uncollectible status. It is rare that the IRS is willing to hold an in-business company uncollectible. The IRS can come back later to collect if the business shows an ability to pay in the future. But, for now, our clients can have some breathing room to deal with other matters in their lives.