The Problem: Our client contacted Sullivan Consulting after a state taxation department filed a $65,000 lien for unpaid withholding tax liabilities from her ex-husband’s company. The client’s attorney had failed to file a timely appeal, and so recommended she pay the debt without verifying the accuracy of the assessment. Sullivan Consulting undertook the task of reconstructing the facts of the case, including lawsuit depositions, state collection investigation files, corporate records, and tax returns.

The Sullivan Solution: Because the original debt had been assessed more than 12 years earlier, Sullivan Consulting had to petition the state Attorney General, the Secretary of State, and the state taxation department Assessment Division, before its own Compliance Division would reopen the case.

Because of the comprehensive case review conducted in preparing the appeal petition, the taxation department determined that our client never signed employment tax returns, nor was she a responsible officer or employee so as to make her liable for the delinquent taxes. Therefore, the assessments were abated and the tax liens were immediately released.

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The Problem: A taxpayer was face with a possible assessment of the Trust Fund Recovery Penalty of over $80,000 due to the failure to pay federal employment taxes, Form 941.

The Sullivan Solution: Sullivan Consulting outlined to the IRS a specific detailed account of the reasons why the taxpayer was not a “responsible officer” or “willful” due to fraudulent actions taken by his partner that directly resulted in the restaurants demise. The IRS agreed and the taxpayer was not assessed a liability.

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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 abatement of the penalties saving our clients $55,000.

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The Problem: The IRS proposed the Trust Fund Recovery Penalty against a former accountant of a defunct business on the sole basis that he was a relative of the company president.

The Sullivan Solution: Arguing the case before the IRS Appeals Division, Sullivan Consulting was able to conclusively demonstrate that the accountant was neither a responsible corporate officer nor willful in the company's failure to pay Federal Employment Withholding taxes.

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