The Problem: Their attorney referred our client, a nursing home management company, to Sullivan Consulting after meeting with a ‘helpful’ Revenue Officer who promptly filed a $300,000 tax lien, and then threatened to levy our client’s bank accounts and receivables.

The Sullivan Solution: Having represented numerous health care industry clients, a thorough examination of the case background revealed the cause of the tax debt was due to “reasonable cause” and not mismanagement by the client. Citing the much-maligned Balanced Budget Act of 1997, two appeals for penalty relief and an extensive financial statement analysis were filed with the IRS. The Appeals Division granted the penalty relief requests totaling $245,000, while the Revenue Officer was ordered to grant a monthly installment agreement.

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The Problem: Sullivan Consulting was retained after the IRS levied our client’s bank account.

The Sullivan Solution: Sullivan Consulting obtained an immediate levy release after filing a Collection Appeal request with the Revenue Officer. In addition, while reviewing the case history, it was learned that our client took over his former employer’s franchise business to save 15 fellow employees’ jobs.  Sullivan Consulting filed an appeal requesting penalty relief due to reasonable cause.  The Revenue Officer conceded the penalties, saving the taxpayer $32,000.

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The Problem: Former officers of a defunct restaurant were assessed the Trust Fund Recovery Penalty.

The Sullivan Solution: After meeting with the Internal Revenue Service Officer, reviewing the administrative file, and analyzing transcripts, Sullivan Consulting determined the taxes had, in fact, been paid and the Trust Fund Penalty assessed in error. Sullivan Consulting obtained immediate release of levies and filed and appeal for penalty relief saving our clients $55,000.

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The Problem: A 55-year-old multimillion-dollar commercial trucking company incurred over $1 million dollars in employment tax liabilities in an 18-month period. 

The Sullivan Solution: For over 50 years the trucking company utilized the services of a local accounting firm to administer all facets of the accounting and finances. In essence, they acted as the Chief Financial Officer. After multiple occurrences of errors leading to adjustments on returns and untimely completion of work the Trucking company retained the services of Sullivan Consulting. A detailed audit of the accounting and business records quickly discovered numerous instances that can best be described as gross negligence and malpractice on the part of former accounting firm. There were numerous incidences of accounting errors discovered resulting from the improper postings of expenses and, in some cases, expenses that were never posted at all. The biggest impact of the defective financials was the trucking company’s ability to properly bid their contract proposals. Absent accurate financial statements, the trucking company unknowingly under calculated their bids which eventually leading to sever cash flow problems. Citing these issues, Sullivan Consulting filed an appeal requesting penalty relief due to reasonable cause. The IRS Appeals division agreed and abated the penalties, saving the trucking company over $400,000.

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