Case Studies

Tax Attorney Sheldon Lazarow Negotiates a Settlement of $271 on a Tax Debt of 1.5 Million Dollars

A partner in a real estate development company accumulated a 1.5 million dollar IRS tax debt due to the unfortunate failure of a large property development project. Sheldon Lazarow filed an Offer in Compromise for the developer, but the IRS Offer in Compromise unit in Memphis, Tennessee wouldn't even consider reducing the debt. Mr. Lazarow appealed the Offer in Compromise denial to the IRS Office of Appeals. He amassed financial and other evidence showing not only that his client couldn't pay the debt, but also that it was unlikely that she could ever be able to pay the debt.

At the time of the Appeal hearing, Mr. Lazarow argued his case to the Appeals Officer, but the Appeals Officer was reluctant to reduce the debt. After listening to the Appeals Officer's concerns, Mr. Lazarow asked the Officer to continue the hearing so that he could file other documents to assure the Officer that his objections to compromising such a large debt were not valid. The hearing was continued. After many months of negotiation the Appeals Officer finally agreed to let the property developer settle her 1.5 million dollar debt for the sum of $271. IRS management approved the Appeals Officer's decision. The client paid the $271 immediately and the remainder of the tax debt was forgiven.