Un-filed Returns - Real
Estate Land Parcel Consolidator
A career Real Estate “Land Parcel Consolidator” focused on
acquiring land parcels to provide for development of larger commercial
projects at high traffic intersections. Back in the mid 1980’s he
acquired a couple of land parcels that were titled in his
corporation’s name.
In 2008 he was planning to sell one of the corporate land parcels
and during a title search the closing attorney discovered that the
corporation was not in good standing with the North Carolina Secretary
of State, therefore, could not give a clean title to the potential
buyer.
It turned out that the last corporate tax return had been filed in
1990. In order for the North Carolina Department of Revenue to give a
tax clearance letter to the Secretary of State, the state returns were
required to be filed.
Our client needed:
- Corporate tax returns prepared for the 17 years,
- A tax clearance letter sent from the North Carolina Department
of Revenue to the Secretary of State and
- A Certificate of Good Standing from the Secretary of State.
And, of course, time was of the essence.
We gave top priority to getting the tax returns prepared and were
careful to maximize the tax advantages to the corporation. We did this
by resolving tax law interpretations in the corporations favor and
maximizing the loss carry back and carry forward provisions in the tax
law so that years with tax due were advantaged by carrying available
losses into those years which reduced or eliminated the tax in those
years.
While preparing the returns we alerted the North Carolina
Department of Revenue and the Secretary of State’s offices to expect
the returns and help us with a quick turn around.
We were able to get the North Carolina Department of Revenue to
provide the tax clearance letter to the Secretary of State the same
day the returns were provided to them. The Secretary of State provided
the Certificate of Good Standing the same day also because of our
advance coordination with these state authorities.
It turned out that the real estate closing took place and the
corporation is back in good standing with the taxing authorities. We
are continuing to keep the corporate returns current to avoid these
type challenges in the future for our Real Estate Consolidator Client. |
Caregiver/Small Businesswoman
A former Officer Manager took over a small business (Post Office
Facility in a retail strip shopping center) at the request of her
boss. The Post Office Facility was located in the boss’s small
shopping center. This is where this businesswoman’s tax problems
began. She didn’t file in 1998 because of not having some documents
that she needed for complete information. The next year she hadn’t
solved the problem for 1998 so she didn’t file again.
Meanwhile she worked several “non-employee” type jobs (which did
not withhold taxes) over the next several years because of the failure
of her small business. Among all this chaos she simply stopped filing
tax returns.
When we met her in the latter part of 2008, the last returns she
had filed were for 1997.
We filed the 10 years federal and state tax returns for her and
David’s company (D. G. Yarborough, Inc.:
www.dgy-Inc.com) helped her
with managing the tax debt resulting from filing the returns. She is
on track now so that she will not get behind again.
Her tax debt for the years 1998 through 2008 will be settled for
less than is owed on the tax returns and she will be back into the
system and in control of her future because of getting back into good
standing with the taxing authorities.
We are continuing to help her stay on track with her tax matters
and she is clearly in control of her future and is enjoying the
absence of stress that was associated with her non-filing status.
Business Bad Debt Deduction
Client’s tax preparer was not willing to deduct losses for tax
savings. Their client came to us. We took the deductions for business
bad debts, explained the deductions to IRS and client received
approximately $105,000 in tax refunds. This case involved two
corporations and one individual tax return.
Tax Return Preparer Referral to us
- A Tax Return Preparer was handling an IRS audit for his client.
The audit had gone on for more than 18 months. The IRS had arrived
at substantial tax due. The Tax Return Preparer asked us to review
the proposals made by the IRS auditor. After identifying errors in
the IRS position we proceeded to negotiate with the IRS on behalf of
the client. After only two months we were able to reduce the amount
due to the IRS as a result of the audit by over $97,000. We wrapped
up the audit quickly and our client paid the amount of tax due and
moved on with his life with a lot more of his hard earned money in
the bank than would have been the case had we not gotten involved.
- This client was audited and he was initially represented before
the IRS by his tax return preparer. The IRS proposed large
adjustments that the client did not agree with. After the tax return
preparer did all he could do to get the IRS to “back off” of the
adjustments, the tax preparer referred the client to us. The end
result was the IRS reduced the taxes, penalties and interest by $
85,000 because of our involvement in the audit.
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Net Operating Loss Carry-forwards and carry-backs
A land assembler had large income in 2 years and losses in 4 years.
Through Net Operating Loss Carry-forwards and carry-backs we were able
to save this client approximately $38,000 in tax. This reduction
enabled client to pay in full.
Un-filed Tax Returns
- Client did not file tax returns and IRS filed for this client.
We filed corrected returns and reduced the tax by approximately
$60,000.
- A corporation, had not filed corporate or payroll tax returns
since 1993. IRS demanded returns. Client’s tax preparer was unable
to complete returns within time-table given by IRS. CPA referred the
client to us. We stepped in and completed all returns for client.
- A Land Assembler, had accumulated land parcels to sale to
developer. IRS was threatening to seize the proceeds of the sale if
9 tax returns were not filed. We prepared and filed the returns and
the sale went through without IRS seizing any of the proceeds.
- Clients had IRS debt from payroll taxes and were non filers of
business and personal tax returns from 2005 forward. IRS was not
willing to work with the clients as long as they were not current
with their filings. During this time frame, the client’s corporation
shut down and they started operating their business as a sole
proprietorship. We were hired to prepare the delinquent returns. We
prepared a corporate return for 2005 and 2006 (the corporation shut
down this year), and individual returns for 2005 through 2008. We
handled the transition from the corporation to the sole
proprietorship in 2006 for the clients and got them up to date with
their filings. The IRS was then willing to work with them regarding
their delinquent balances and they were able to get that resolved
because the returns were now filed.
- Client is a distribution company of boiler systems and parts.
Client came to us as a non-filer of payroll reports and corporate
tax returns and owes IRS for taxes. We first completed all the
payroll reports that were delinquent. We then prepared the required
corporate tax returns. He is now current with his filings for the
first time in 10 years and we will continue to keep him current with
the taxing authorities.
Contact our office for more success stories
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