8045 Corporate Center Dr.,
Charlotte, NC 28226
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1. 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.
2. Net Operating Loss Carry-forwards and
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.
3. 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
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.
4. 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.
5. 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.
6. Un-filed Returns - Real Estate Land Parcel
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
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
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.