IRS Case Studies & Success Stories 📊
At Executive Tax Solution, we believe the strongest proof of our expertise comes from real client outcomes.
Thank you for reading this post, don't forget to subscribe!These case studies highlight how individuals and businesses facing serious IRS problems found relief, restored
their financial stability, and moved forward with confidence. Each story is backed by transcripts and verified
results, offering proof that disciplined strategy and direct action can resolve even the toughest IRS challenges.
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Bank levy threatens living funds (George Franklin)
A bank levy is threatening funds George needs for ordinary living expenses, creating an urgent need for tax-resolution action to preserve access to cash for daily living.
Background
George Franklin is an 80-year-old retired business owner from Rockwall, TX. His tax issue involves a bank levy that is threatening funds he needs for ordinary living expenses. The levy places his retirement liquidity at risk and requires prompt attention to avoid loss of access to necessary funds.
Our Approach
Immediate steps should focus on stopping or pausing the levy and documenting the funds required for ordinary living expenses so a collector will consider release or relief. Allen Lenth, EA-MBA at Executive Tax Solution should be engaged to contact the appropriate tax authorities and the bank, prepare and submit the financial documentation, and request temporary relief while longer-term collection options are evaluated. Time-sensitive communication and accurate financials are necessary to protect access to cash and to buy time to negotiate a sustainable resolution.
Outcome
Successful handling should result in the levy being released or paused, restoration of access to the funds needed for ordinary living expenses, and establishment of a sustainable collection arrangement or other relief that protects George's retirement liquidity. The objective is to secure immediate financial breathing room and a clear path forward for resolving the underlying tax exposure without jeopardizing day-to-day living.
🚨 Facing a serious IRS problem? Get Bank Levy Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/shorts/Mgg3hLAnfIg
Unexpected Self-Employment Tax from 1099 Contracts (Vanessa C.)
Vanessa C., a 31-year-old speech pathologist in Allen, TX, received multiple 1099s from contract positions and now faces an unexpected self-employment tax liability, which requires prompt tax planning to manage cash flow and compliance.
Background
Vanessa Clark is 31 and works as a speech pathologist in Allen, TX. She held multiple contract positions that generated 1099 income. That independent-contractor income created a self-employment tax liability she did not anticipate. The mix of contract work has left her exposed to additional tax obligations beyond typical wage withholding.
Our Approach
A clear next step is to determine Vanessa's net self-employment income and compute the accurate self-employment tax and any federal estimated tax shortfall. Allen Lenth, EA-MBA at Executive Tax Solution should review her 1099s and allowable business expenses, prepare amended estimates of quarterly payments if needed, and recommend bookkeeping or withholding adjustments going forward. The review should also identify deductible expenses and retirement-savings options that can reduce taxable self-employment income and help with cash-flow planning.
Outcome
Successful handling will produce an accurate calculation of Vanessa's self-employment tax exposure, a plan to address any underpayment (through estimated payments or other IRS-acceptable options), and ongoing tax-planning steps to reduce future surprises. The objective is compliance with tax filing requirements while minimizing penalties and creating a sustainable strategy for managing contract income.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Defaulted Installment Agreement (Roger M.)
Roger M., a 59-year-old commercial insurance broker in St. Paul, TX, defaulted on his IRS installment agreement after a new balance was assessed; timely action is needed to address the default and the newly assessed balance.
Background
Roger M. is 59 and works as a commercial insurance broker in St. Paul, TX. He entered an IRS installment agreement previously. After the IRS assessed a new balance, the installment agreement went into default. No additional details about amounts, dates, or prior correspondence are provided in the brief.
Our Approach
The immediate steps are to obtain and review the IRS notices and account transcripts to confirm the new assessment and the current balance. Allen Lenth, EA-MBA at Executive Tax Solution should be engaged to contact the IRS, request reinstatement or propose a new, compliant payment arrangement, and assemble any necessary documentation to support adjustments or penalties disputes. If reinstatement is not available, Executive Tax Solution can evaluate alternative collection options (restructured installment agreement, partial payment, or other administrative remedies) and negotiate terms that reflect Roger's cash flow. Clear communication with the IRS and documented proposals are essential to prevent enforcement actions and stabilize Roger's tax standing.
Outcome
A successful handling will verify the assessed balance, stop or reverse the default status where possible, and secure an affordable and sustainable payment solution or alternative resolution. The objective is to prevent enforced collection activity, provide predictable payment terms for Roger, and restore his account to good standing while preserving his business operations. If reinstatement cannot be obtained, the outcome should be a negotiated plan that reflects Roger's ability to pay and minimizes additional penalties and interest.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Correct Payroll Taxable Benefits (Andrea H.)
Andrea H., a nonprofit executive director, needs to correct payroll reporting for taxable employee benefits to restore accurate withholding and maintain IRS compliance.
Background
Andrea Hughes is 48 and serves as the Executive Director of a nonprofit in Lucas, TX. Her organization has payroll reporting that requires correction because certain employee benefits should have been reported as taxable. The issue involves payroll-level reporting and affects how employee wages and tax withholdings were recorded.
Our Approach
The organization should review payroll records to identify which employee benefits were omitted or misclassified and quantify the tax impact so corrected filings can be prepared. Allen Lenth, EA‑MBA at Executive Tax Solution can guide the process, coordinate with the payroll vendor or internal payroll staff, and advise on filing amended payroll returns and corrected wage statements as needed. Timely correction reduces exposure to withholding errors, potential penalties, and employee confusion.
Outcome
Successful handling should produce accurately amended payroll reports and corrected employee wage statements, properly remit any missing withholding, and document the corrections to support the nonprofit's compliance position. The objective is to minimize penalties and interest, clear up employee tax reporting, and demonstrate to the IRS that the organization addressed the reporting errors responsibly.
🚨 Facing a serious IRS problem? Get Business IRS Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Unfiled Contractor Returns (Rafael T.)
Failed to file tax returns after switching from W-2 employment to independent contractor status, requiring prompt action to establish compliance and manage potential tax liability and collection risk.
Background
Rafael T. is 36 and works as a flooring installer in Lavon, TX. He switched from being a W-2 employee to working as an independent contractor. After that switch he failed to file required tax returns.
Our Approach
Missing returns should be prepared and filed using available income documentation and self-employment tax calculations; Allen Lenth, EA-MBA at Executive Tax Solution can advise on accurate preparation and documentation requirements. Once returns are filed, determine the current tax liability, evaluate penalty relief options, and pursue an appropriate resolution such as an installment agreement or other IRS-approved arrangement. Implementing bookkeeping and estimated tax processes will be necessary to prevent future noncompliance.
Outcome
The objective is to have all missing returns filed accurately, an agreed pathway to resolve any outstanding tax balance, and a plan to meet ongoing self-employment tax and estimated payment obligations. Successful handling should minimize penalties and collection exposure and restore compliant filing status going forward.
🚨 Facing a serious IRS problem? Get Unfiled Return Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Incorrect 1099-R Reporting (Diane P.)
A 1099-R for Diane P. incorrectly indicates an IRA withdrawal was taxable, and correcting it is important to prevent an erroneous tax bill or penalties.
Background
Diane P. is a 73-year-old retired nurse living in Richardson, TX. Her tax issue is that a 1099-R incorrectly indicates an IRA withdrawal was taxable. The misreporting creates a risk of an inaccurate tax liability for her retirement income. Diane is concerned about resolving the incorrect information with the IRS and the payer.
Our Approach
The next steps are to verify the 1099-R details and obtain documentation showing the withdrawal's true tax status, then request a corrected 1099-R from the plan administrator if the form is wrong. Allen Lenth, EA-MBA at Executive Tax Solution should be engaged to communicate with the payer and, if needed, prepare and file the appropriate IRS corrections or an amended return (e.g., Form 1040-X) to reflect the non-taxable treatment. Representation by Executive Tax Solution helps ensure deadlines are met and the IRS receives supporting evidence so the incorrect reporting can be disputed efficiently.
Outcome
Successful handling should result in a corrected 1099-R or an accepted amended return that removes any improperly assessed taxable income, minimizing Diane's tax liability and avoiding penalties or interest tied to the error. The objective is to have the IRS and the payer consistently reflect the correct tax treatment of the IRA distribution so Diane's retirement records and future filings are accurate.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Self-employment tax from sponsorships (Noah K.)
Sponsorship, advertising, and affiliate payments produced Noah K.'s first major self-employment tax bill, and prompt tax analysis and planning matters to manage payments and compliance.
Background
Noah Kim is 23 and a YouTube creator based in Plano, TX. Sponsorship, advertising and affiliate payments produced his first major self-employment tax bill.
Our Approach
The immediate needs are to document and calculate net self-employment income, identify allowable business deductions, and prepare accurate returns (Schedule C and Schedule SE) so liability is correct. Allen Lenth, EA-MBA at Executive Tax Solution should review Noah's records, advise on deductible expenses and estimated tax requirements, and, if necessary, negotiate payment options or an installment agreement with the IRS. Establishing a reliable estimated tax plan and bookkeeping process for future sponsorship and affiliate income should follow to prevent recurrence.
Outcome
The objective is an accurate determination of Noah's self-employment tax liability, an affordable repayment path if he cannot pay in full, and a clear compliance plan to minimize future penalties and interest. Successful handling will produce documented returns, a manageable payment arrangement or other IRS-appropriate resolution, and implemented estimated tax practices for ongoing creator income.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Depreciation Question on Short-Term Rental (Laura Patel)
The IRS is questioning depreciation claimed on Laura Patel's short-term rental property, and timely, documented response matters because depreciation adjustments can change taxable income and lead to additional tax, interest, or penalties.
Background
Laura Patel is a 53-year-old architect from Parker, TX. She claimed depreciation on a short-term rental property that is now under IRS scrutiny. The issue centers on the depreciation she reported for that rental property.
Our Approach
Laura should gather and organize all property records—purchase and closing documents, records of capital improvements, placed-in-service dates, depreciation schedules, and rental-use logs—to substantiate basis and allocation between personal and rental use. Allen Lenth, EA-MBA at Executive Tax Solution can review those records, determine the correct recovery period and method, prepare any corrected depreciation computations if needed, and draft a formal response to the IRS audit or inquiry. If discrepancies remain, the team can evaluate options such as amended returns or negotiating an agreed adjustment while preserving documentation for future review.
Outcome
The objective is to substantiate or appropriately correct the depreciation claimed to minimize any additional tax, interest, and penalties and to reach an agreed position with the IRS if adjustments are necessary. Successful handling should also clarify the correct depreciation treatment going forward and ensure Laura has organized records to support the position in any continuing correspondence or future examination.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Unreported Cash Receipts & Payment-App Deposits (Terrence W.)
A Rowlett barber shop owner did not fully report cash receipts and payment-app deposits for two years, creating exposure to assessments, penalties, and collection risk that must be resolved promptly.
Background
Terrence W. is a 39-year-old barber shop owner in Rowlett, TX. For two years, cash receipts and deposits from payment apps were not fully reported on his tax filings. The issue involves reconciling deposits to reported income to determine the accurate tax liability. No resolution or IRS outcome is provided in the brief.
Our Approach
The case requires a records review and income reconstruction using bank statements, payment-app histories, POS logs, and any bookkeeping to reconcile deposits with reported sales. Allen Lenth, EA-MBA at Executive Tax Solution should prepare corrected or amended returns as needed, document the methodology used to reconstruct income, and communicate with the IRS to address proposed adjustments. If tax is owing, the team will evaluate options such as installment agreements or other collection alternatives and assemble reasonable-cause support where applicable. Clear bookkeeping changes and compliance steps will be recommended to prevent recurrence.
Outcome
Successful handling should produce accurate, supportable tax filings that reflect true income for the affected years, minimize penalties and interest through proper documentation and negotiation, and secure a manageable resolution path (payment plan or other collection alternative) if tax is owed. The objective is to restore compliance, reduce enforcement risk to the business, and implement procedures to ensure future reporting is complete.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Early 401(k) Distribution Tax Balance (Candace M.)
Early 401(k) distributions taken during a divorce created a substantial tax balance for Candace M., and prompt action matters to address the liability and its impact on her finances.
Background
Candace M. is a 46-year-old pharmacist living in Garland, TX. During a divorce she took early distributions from a 401(k). Those distributions resulted in a substantial tax balance that requires resolution. The tax issue stems directly from the early retirement account withdrawals taken in the divorce process.
Our Approach
The next steps are a full review of the distribution documentation (1099-Rs) and relevant tax returns to calculate the precise liability and identify any applicable exceptions or withholding credits. Allen Lenth, EA-MBA at Executive Tax Solution should assess Candace's current ability to pay and evaluate appropriate IRS resolution pathways—such as installment agreements, penalty relief reviews, or other collection alternatives—based on the documented facts. Parallel work will include verifying filing accuracy and confirming whether any rollover or technical relief options apply given the divorce context. Clear communication with Candace about cash-flow impacts and retirement preservation is essential throughout the process.
Outcome
A successful handling will produce an accurate computation of the tax balance, a tailored IRS resolution plan that fits Candace's payment capacity, and mitigation of further financial harm to her retirement security. The objective is to place the tax account in a sustainable status, minimize additional charges where possible, and provide Candace with a clear roadmap for remaining compliant moving forward.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/shorts/EyT1znpyS3U
Disputed Taxable Military Retirement (Bruce H.)
Bruce H., a 68-year-old retired military officer from Wylie, TX, disputes the taxable portion of his military retirement and other pension income, and prompt resolution matters because it determines his correct federal tax liability and exposure to IRS collection.
Background
Bruce H. is 68 and a retired military officer living in Wylie, TX. He disputes the taxable portion of his military retirement and other pension income. The issue involves determining which portions of those benefits should be included in taxable income under federal tax rules.
Our Approach
Executive Tax Solution, led by Allen Lenth, EA-MBA, should gather the client's military retirement paperwork, service records, pension statements, and IRS transcripts to document the character of each payment. Those documents must be used to compute the taxable versus nontaxable portions under the applicable statutes and regulations and to identify any filing or reporting errors. If IRS assessments or notices reflect incorrect taxation, the firm may prepare amended returns, submit supporting documentation, and pursue administrative appeals or IRS correspondence to substantiate the correct treatment and protect the client from improper collection.
Outcome
The objective is for the IRS to recognize the correct taxable amounts for military retirement and other pensions, adjust assessments and account transcripts as needed, and minimize any additional tax, penalties, and interest consistent with the documentation. Successful handling should also reduce the risk of enforced collection and ensure the client's future benefit taxation and reporting are accurate.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Tax Notice After App Trading (Olivia M.)
A 19-year-old college student received an IRS tax notice after trading stocks and cryptocurrency through an app, and timely action is needed to establish correct reporting and respond to the notice.
Background
Olivia Martinez is 19 and a college student in Murphy, TX. She received a tax notice after trading stocks and cryptocurrency through an app. The notice relates to activity reported or identified from those app trades. No additional amounts or outcomes are provided in the brief.
Our Approach
Gather all brokerage and app account statements, trade histories, and any 1099 or transaction summaries from the app, and reconcile those records with the tax return(s) in question. Determine whether gains, losses, or reporting thresholds were correctly handled and prepare the documentation the IRS requests. If discrepancies are found or a response is required, engage Allen Lenth, EA-MBA at Executive Tax Solution to review the records, prepare any necessary amended returns or correspondence, and communicate with the IRS on Olivia's behalf. Timely, documented response is important to clarify liability and preserve available options.
Outcome
The objective is to confirm the correct tax treatment of the stock and cryptocurrency trades, correct reporting errors if any, and resolve the IRS notice through accurate documentation or negotiated resolution. Successful handling should result in an accurate assessment of tax owed (if any), a formal response to the IRS, and a path forward that minimizes escalation and preserves Olivia's options for payment or adjustment.
🚨 Facing a serious IRS problem? Get IRS Notice Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Delinquent Employment Taxes (Scott N.)
An IRS Revenue Officer is pursuing delinquent employment taxes for Scott N.; timely action matters to address enforcement and restore the business to compliance.
Background
Scott N. is 54 and owns an auto repair shop in Sachse, TX. The IRS has assigned a Revenue Officer and is pursuing delinquent employment taxes owed by the business.
Our Approach
Allen Lenth, EA-MBA at Executive Tax Solution should engage the Revenue Officer immediately, assemble the shop's payroll records and deposit history, and confirm which returns and deposits are outstanding. With that documentation he can evaluate appropriate collection pathways, communicate with the Revenue Officer, and negotiate a collection arrangement that addresses the delinquent employment taxes while minimizing business disruption.
Outcome
The objective is to secure a collection resolution that brings the employment tax account current or places it on an approved payment arrangement, limits further enforcement activity, and establishes compliant payroll procedures going forward to prevent recurrence.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=DxwC0olH97Q&list=PLVhzklnDWv7f4GNK0X-mJdjDMYJZoAUaG
Unfiled Returns (Jasmine C.)
Jasmine C., a 33-year-old hair salon owner in Farmersville, TX, has two unfiled tax returns and incomplete records of cash and electronic payments; prompt reconstruction and filing matter to determine correct tax liability and preserve collection options.
Background
Jasmine C. is 33 and owns a hair salon in Farmersville, TX. She has two unfiled federal tax returns. Her business records are incomplete for both cash receipts and electronic payment records. These gaps hinder accurate tax reporting and calculation of owed tax.
Our Approach
The immediate needs are to reconstruct income and expense records for both missing years, compile bank, merchant, and point-of-sale records, and prepare the two required tax returns for filing. Allen Lenth, EA‑MBA at Executive Tax Solution should oversee the assembly of documentation, reconciliation of cash and electronic payments, and preparation of accurate returns so liability can be quantified. Once returns are prepared, explore appropriate IRS collection options such as installment agreements or other resolution paths based on the calculated balances. Clear documentation and timely filing are essential to limit penalties and enable negotiation with the IRS if needed.
Outcome
Successful handling should result in both missing returns filed with reconciled income and expense figures, a verified calculation of tax liability for each year, and a practical plan for addressing any balance due (payment plan or other resolution). The objective is to minimize exposure to avoidable penalties and interest, restore tax compliance, and preserve the client’s access to IRS collection options.
🚨 Facing a serious IRS problem? Get Unfiled Return Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Overstated Brokerage Gain (Harold F.)
Brokerage proceeds were reported to the IRS without basis, dramatically overstating Harold F.'s gain — correcting the basis is required to prevent an incorrect tax liability, penalties, and interest.
Background
Harold F. is a 70-year-old retired sales manager from Princeton, TX. His brokerage account proceeds were reported to the IRS without any basis information, which created a materially overstated gain on the information return. The mismatch between the broker's reporting and Harold's actual cost basis means the IRS records show a higher taxable gain than he truly realized. This discrepancy needs to be reconciled with the IRS to reflect correct taxable amounts.
Our Approach
The next steps are to gather original trade confirmations, cost-basis records, and broker statements and to request any corrected 1099-B or substitute statements from the brokerage. Allen Lenth, EA-MBA or Executive Tax Solution should be engaged to prepare the correct Form 8949 entries and, if required, file amended returns (Form 1040-X) to align Harold's tax returns with the broker-corrected basis. If the broker will not correct the information return, documentation must be assembled to support Harold's basis and submitted to the IRS with explanatory statements to resolve the mismatch. Timely, well-documented reconciliation is essential to minimize additional tax, penalties, and interest and to prevent enforcement action.
Outcome
A successful resolution will correct the reported basis on IRS records or the taxpayer's return so Harold's true gain is reflected, reducing any overstated tax, penalties, and interest. It should also create a clear administrative record (corrected 1099-B or Form 8949 with supporting documentation) to prevent future IRS match issues and collection notices. The objective is an accurate tax assessment and avoidance of unnecessary enforcement due to the reporting error.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Marketplace Insurance Reconciliation (Megan C.)
A Marketplace insurance reconciliation produced an unexpected Form 8962 balance for Megan C.; prompt review matters to determine correct tax liability and avoid surprise tax debt.
Background
Megan C. is a 25-year-old elementary teacher living in Josephine, TX. A Marketplace health insurance reconciliation created an unexpected balance on Form 8962. The discrepancy stems from the premium tax credit reconciliation tied to her Marketplace coverage.
Our Approach
The next steps are to gather the Marketplace Form 1095-A, verify household income documentation, and prepare or correct Form 8962 to reconcile the premium tax credit; Allen Lenth, EA-MBA at Executive Tax Solution can lead that review. If the original return omitted or misstated information, an amended return may be required and calculations should be redone to show the correct credit or balance. If a balance remains after correction, explore IRS options such as payment plans or other resolution paths to manage any tax due.
Outcome
Successful handling should produce an accurate Form 8962 reconciliation and, if needed, an amended return that reflects correct premium tax credit amounts. The objective is to minimize net tax owed by correcting eligibility or income data, ensure compliance with IRS reporting, and if a balance persists, implement an agreed payment or resolution plan that fits the client's situation.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Three Quarters Unpaid Form 941 (Brian S.)
Brian S., a 40-year-old landscaping company owner in Nevada, TX, has three quarters of unpaid Form 941 taxes; prompt action matters to limit penalties, interest, and enforcement risk.
Background
Brian Sanchez is 40 and owns a landscaping company in Nevada, TX. He currently has three quarters of unpaid Form 941 payroll tax returns. The unpaid returns are business tax obligations tied to his landscaping operations. There are outstanding filing and payment issues that need to be resolved.
Our Approach
Brian needs to assemble payroll records, prepare and file the missing Form 941 returns, and calculate the total tax, penalties, and interest owed so the liability is fully documented. After the balances are determined, he should contact the IRS to request a workable collection solution—such as an installment agreement or other relief—and supply required financial information. Allen Lenth, EA-MBA at Executive Tax Solution can represent Brian, manage correspondence with the IRS, and negotiate appropriate payment arrangements or penalty relief on his behalf. Acting quickly reduces the chance of escalated enforcement like liens or levies and helps preserve business cash flow.
Outcome
A successful resolution will have the three missing Form 941s properly filed, an accurate accounting of tax, penalties, and interest, and a negotiated collection plan that fits the business cash flow or documentation of any approved relief. The objective is to stop or prevent enforced collection actions, minimize additional penalties and interest where possible, and restore compliance for the landscaping business. Ongoing bookkeeping and timely future filings should be put in place to prevent recurrence.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Hobby Loss Determination (Courtney E.)
The IRS is questioning whether repeated losses from Courtney E.'s horse training activity are hobby losses rather than a business, and resolving this matters to protect her ability to claim business deductions.
Background
Courtney E. is a 35-year-old horse trainer based in Fairview, TX. The IRS has questioned whether repeated losses reported for her horse training activity should be treated as hobby losses. This classification directly affects the tax treatment of those reported losses.
Our Approach
Courtney needs to compile and organize contemporaneous records that demonstrate a profit motive and businesslike operations—examples include detailed income and expense records, advertising and marketing efforts, a business plan, and evidence of changes made to seek profitability. Allen Lenth, EA-MBA at Executive Tax Solution should review her documentation, identify gaps, and prepare a focused response to the IRS using the agency's profit-motive criteria. The goal of this work is to present a clear, evidence-based case that the activity is conducted as a business rather than a hobby.
Outcome
The objective is to convince the IRS that the horse training activity is a bona fide business so that eligible business deductions remain allowable. Successful handling should result in a resolution that either sustains the business classification or provides a clear path (amendments, substantiation, or negotiation) to minimize tax adjustments and preserve future tax treatment consistency.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Insufficient Estimated Payments — $118,000 Owed (Phillip A.)
A 62-year-old physician in McKinney, TX owes $118,000 after several years of insufficient estimated payments on consulting income; prompt action matters to limit accruing interest, penalties, and IRS collection risk.
Background
Phillip A. is a 62-year-old physician in McKinney, TX who earned consulting income. Over several years he made insufficient estimated tax payments on that consulting income, resulting in a $118,000 federal tax balance owed to the IRS.
Our Approach
Allen Lenth, EA-MBA at Executive Tax Solution should first verify the exact tax computations, including accrued penalties and interest, by reviewing consulting income records and prior estimated-payment history. Next steps include evaluating available IRS collection options—such as an installment agreement or other relief—requesting penalty abatement if justified, and preparing the necessary documentation and proposals for IRS submission. Concurrently, implement corrected estimated payment calculations or withholding adjustments to prevent future underpayment.
Outcome
Successful handling should produce a clear, documented plan to address the $118,000 liability: an IRS-approved payment arrangement or other appropriate resolution, reduced penalties or interest if eligibility exists, and a path to current compliance. The objective is to stop further enforcement escalation, preserve the taxpayer's financial stability, and establish accurate ongoing estimated payments.
🚨 Facing a serious IRS problem? See Penalty Abatement Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Employee stock options CP2000 (Grace Liu)
Grace Liu, a 29-year-old data scientist in Dallas, received a large CP2000 assessment triggered by employee stock options, and timely, accurate action matters to limit additional tax exposure and related penalties and interest.
Background
Grace Liu is 29 and works as a data scientist in Dallas, TX. Her employee stock options triggered a large CP2000 assessment from the IRS. The CP2000 indicates the IRS believes reported income from her stock compensation does not match third-party reporting.
Our Approach
The case requires a detailed reconciliation of stock option transactions, employer reporting, brokerage statements, and Grace's filed return to determine whether the CP2000 is correct or if adjustments are needed. Allen Lenth, EA-MBA and Executive Tax Solution should collect the relevant option grant documentation (e.g., exercise records, Form 3921/3922 if applicable), W-2s, and brokerage 1099s, prepare a substantiated written response to the CP2000, and, if necessary, negotiate timing or payment options with the IRS. Accurate documentation and a timely reply are essential to contest incorrect assessments or limit penalties and interest if additional tax is owed.
Outcome
Successful handling should establish whether the CP2000 assessment is accurate and either produce a supported dispute that results in correction of the notice or an agreed resolution strategy that minimizes tax, penalties, and interest. If liability is confirmed, the objective is to secure manageable payment terms or other appropriate IRS collection relief while preserving Grace's tax position and future compliance.
🚨 Facing a serious IRS problem? Get IRS Notice Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Omitted Rental Income (Derek J.)
A rental property income item was accidentally omitted from Derek J.'s tax return, and timely corrective action matters to accurately report tax liability and limit penalties and enforcement risk.
Background
Derek Johnson is 43 and works as a police detective in Mesquite, TX. Income from a rental property was accidentally omitted from his tax return. The omission creates an underreported income issue that will need to be corrected with the IRS.
Our Approach
The return should be amended to report the omitted rental income, with supporting documentation (rental statements, Schedule E entries) and a recalculation of tax, interest, and any applicable penalties. Allen Lenth, EA-MBA at Executive Tax Solution should prepare and file the amendment (Form 1040-X), assemble evidence of income and expenses, and communicate with the IRS as needed to explain the omission and pursue mitigation. Timely filing of the amended return and thorough documentation increase the chance to limit penalties and clarify payment options.
Outcome
The objective is to have a complete, accurate amended return filed and accepted, with tax, interest, and any penalties properly calculated and minimized where appropriate through documentation or reasonable cause arguments. Successful handling will reduce the risk of further collection action and provide Derek with clear next steps for satisfying any residual liability or arranging payment.
🚨 Facing a serious IRS problem? See Penalty Abatement Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
CP504: $31,000 Self-Employment Tax Notice (Melissa R.)
Melissa R., a 37-year-old insurance agent, received a CP504 for $31,000 of unpaid self-employment taxes — prompt response matters to address collection risk and preserve financial options.
Background
Melissa R. is 37 and works as an insurance agent in Sunnyvale, TX. She received a CP504 notice from the IRS showing $31,000 of unpaid self-employment taxes.
Our Approach
Work with Allen Lenth, EA-MBA at Executive Tax Solution to verify the accuracy of the CP504 amount and confirm corresponding tax return filings. Gather income and expense records, then evaluate appropriate collection alternatives such as an installment agreement or other IRS collection options and prepare the timely response required to the CP504. Determine eligibility for penalty relief or adjustments if documentation supports it, and coordinate communication with the IRS to pause escalated collection while options are evaluated.
Outcome
The objective is to confirm or correct the $31,000 liability, secure a sustainable resolution pathway (for example a manageable payment plan or other eligible collection alternative), minimize additional penalties and interest where possible, and prevent enforced collection actions that could harm Melissa's finances.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=gSOMg45nNMk&list=PLVhzklnDWv7ci3mFdpkgs_WxdUuTnNB1y
Personal and Employment Tax Debt (Jason H.)
Jason H., a 49-year-old home builder from Fate, TX, owes both personal income taxes and employment taxes from his construction company, and prompt action is needed to address liabilities and protect his business and personal finances.
Background
Jason H. is a 49-year-old home builder located in Fate, Texas. He owes both personal income taxes and employment taxes arising from his construction company.
Our Approach
A full assessment of outstanding balances, filing status, and payroll tax history is required to separate personal liabilities from employment tax obligations and determine current compliance gaps. Allen Lenth, EA-MBA at Executive Tax Solution should evaluate options such as bringing payroll returns and deposits current, negotiating an installment agreement, or other IRS collection alternatives as appropriate. The plan must address ongoing payroll compliance to prevent future employment tax accruals and coordinate communications with the IRS to manage collection risk.
Outcome
Successful handling should produce a clear, documented plan to resolve both personal and employment tax liabilities, restore payroll compliance for the construction company, and minimize the risk of enforcement actions that could disrupt the business or personal finances. The objective is sustainable tax compliance and an actionable pathway to repay or resolve the outstanding balances.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Business Deduction Inquiry (Natalie P.)
Natalie P., a 32-year-old interior designer in Heath, TX, is facing IRS questions about business deductions for furniture samples, mileage, and a home office, and timely substantiation is needed to protect deductions and limit tax, interest, and penalties.
Background
Natalie Price is a 32-year-old interior designer based in Heath, TX. The IRS has questioned business deductions she claimed for furniture samples, mileage, and a home office. These items were reported as business expenses on her tax filings. The inquiry focuses on whether she can substantiate business use and compliance with deduction rules.
Our Approach
Collect and organize all original receipts, invoices, mileage logs, appointment records, and home office documentation to substantiate business use and allocation between personal and business. Review depreciation and inventory treatment for furniture samples and confirm the qualifying criteria for the home office deduction. Allen Lenth, EA-MBA at Executive Tax Solution should prepare a formal response to the IRS, clarifying records and legal positions and, if needed, represent Natalie in discussions or an audit. The goal is to present clear evidence and legal support so the IRS can reassess disputed items accurately.
Outcome
Successful handling should result in the IRS accepting allowable deductions that are properly substantiated, and in any disallowed items being minimized through correct classification or negotiation. The desired resolution is to reduce any proposed additional tax, interest, and penalties to the extent supported by documentation, or to obtain an acceptable settlement or adjustment. Proper documentation and representation should also reduce the risk of further enforcement action and provide a compliant framework for future filings.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Determine Collection Statute for Old IRS Balance (Frank E.)
Retired electrician Frank E. wants to determine whether a very old IRS balance is approaching its collection expiration date, which matters for planning and protecting his assets.
Background
Frank E. is 71 and a retired electrician living in Rockwall, TX. He has a very old IRS balance and is unsure how close it is to the IRS collection expiration date. He is seeking clarity about the timeline so he can decide next steps.
Our Approach
The immediate need is to obtain the IRS account and tax transcripts to identify the original assessment dates and any events that toll or extend the collection period. Allen Lenth, EA-MBA at Executive Tax Solution can help request and review transcripts, calculate the Collection Statute Expiration Date (CSED), and identify potential tolling events such as agreements, filings, or other actions recorded on the account. From there, Executive Tax Solution can advise on documentation to preserve and on options to pursue depending on whether the CSED is near or has passed.
Outcome
The objective is to establish the exact CSED for the balance and determine whether the liability remains collectible. Successful handling should produce documented evidence of assessment and tolling history, a clear determination of collectibility, and a recommended course of action — whether that is retaining proof of expiration, negotiating resolution if still collectible, or other protective steps for Frank E.'s finances.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=DxwC0olH97Q&list=PLVhzklnDWv7f4GNK0X-mJdjDMYJZoAUaG
Investment income mismatch (Kimberly S.)
IRS matching records show investment income missing from her return, a discrepancy that requires prompt reconciliation to address the IRS inquiry.
Background
Kimberly S. is 41 and works as a corporate attorney in Allen, TX. IRS matching records indicate investment income reported to the IRS does not appear on her filed return. This mismatch is the tax issue to be resolved.
Our Approach
The next steps are to gather her investment statements and any IRS notices, reconcile the amounts reported to the IRS with her return, and determine whether an amended return or formal response is required. Allen Lenth, EA-MBA at Executive Tax Solution should coordinate document collection, prepare calculations, and communicate with the IRS as the client's authorized representative to ensure accuracy and timely action.
Outcome
Successful handling should reconcile the IRS records with Kimberly's tax return, correct any underreporting through amendment if necessary, and resolve the IRS inquiry with minimal penalties and interest. The objective is a verified, documented resolution that prevents further escalation and preserves the client's professional standing.
🚨 Facing a serious IRS problem? Get IRS Notice Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Unexpected Severance Tax Liability (Steven W.)
A large severance package created an unexpected tax liability for a manufacturing executive, and prompt action is needed to manage payment and collection risk.
Background
Steven Wallace is 55 and works as a manufacturing executive in St. Paul, TX. He received a large severance package that created an unexpected tax liability. The liability arose from tax owed on the severance and requires assessment of current tax status and payment options.
Our Approach
The immediate needs are to review severance documentation and payroll withholding, calculate the precise tax, penalty, and interest exposure, and confirm how the severance was reported on returns. Allen Lenth, EA-MBA at Executive Tax Solution should be engaged to communicate with the IRS, explore installment agreements or other relief options, and update withholding or estimated tax planning to prevent recurrence. Timely documentation and professional representation will reduce the risk of liens or enforced collection.
Outcome
The goal is to establish an affordable path to satisfy the severance-related tax liability while minimizing penalties and collection risk, such as negotiating an installment agreement or other appropriate relief. Successful handling should also correct reporting or withholding going forward so future tax obligations are managed and unexpected tax shocks are avoided.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Contract Medical Income — $22,000 Balance (Rachel F.)
Rachel F., a 34-year-old nurse practitioner in Lucas, TX, has a $22,000 tax balance from contract medical income she cannot immediately pay, and prompt action matters to avoid escalating penalties and enforced collection.
Background
Rachel Foster is 34 and works as a nurse practitioner in Lucas, Texas. She generated contract medical income that resulted in a $22,000 federal tax balance. She cannot immediately pay the full balance. The unpaid liability creates exposure to ongoing interest, penalties, and potential IRS collection activity.
Our Approach
The next steps are to verify the tax liability and documentation for the contract income, then evaluate payment options with the IRS based on current income and cash flow. Allen Lenth, EA‑MBA at Executive Tax Solution should coordinate collecting return copies and notices, determine eligibility for an installment agreement or other relief, and prepare the necessary IRS requests. Communication with the IRS to stop or postpone enforcement while a plan is arranged is also needed to reduce immediate risk.
Outcome
Successful handling should establish a manageable pathway to resolve the $22,000 balance — typically by obtaining an affordable installment agreement or other appropriate IRS resolution — while minimizing penalties, interest growth, and the risk of levies or liens. The objective is predictable monthly payments that fit Rachel's budget and clear steps to fully resolve the liability over time.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Federal Tax Lien Blocking Financing (Miguel H.)
A federal tax lien is preventing Miguel H., a 47-year-old concrete contractor in Lavon, TX, from obtaining business financing; resolving the lien is necessary to restore access to capital.
Background
Miguel H. is a 47-year-old concrete contractor in Lavon, TX. A federal tax lien is interfering with his ability to obtain business financing.
Our Approach
The lien must be verified and addressed by obtaining IRS account transcripts and confirming lien details, then pursuing the appropriate remedy—options include lien withdrawal or subordination, discharge after payment, installment agreements, or an Offer in Compromise if eligibility exists. Allen Lenth, EA-MBA at Executive Tax Solution can analyze Miguel's IRS records, communicate with the IRS, prepare required documentation, and negotiate the lien remedy while coordinating with lenders. Coordinated action with both the IRS and potential lenders is needed so the lien no longer blocks financing decisions.
Outcome
The resolution objective is to secure an IRS remedy (withdrawal, subordination, discharge, or an enforceable payment arrangement) that removes the lien as an obstacle to business financing. Successful handling should enable lenders to reassess risk and allow Miguel to obtain the capital his concrete contracting business needs, while establishing a sustainable plan to prevent future collection escalation.
🚨 Facing a serious IRS problem? See Offer in Compromise Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=1-b29M-v61Q&list=PLVhzklnDWv7fjcevnzxf1apXt-28UUCoK
1099-C Cancellation Income Dispute (Patricia C.)
Received a 1099-C after a credit-card settlement and disputes how much cancellation-of-debt income is taxable; resolving this correctly matters to avoid overpaying tax or triggering IRS adjustments.
Background
Patricia C. is 64 and works as a bookkeeper in Richardson, TX. She received a 1099-C following a credit-card settlement. She disputes the taxable amount reported on that form and needs clarity on what portion, if any, is excluded from income. No other facts about amounts or years were provided.
Our Approach
The next steps are to collect the 1099-C, the settlement agreement, account history, and any documentation supporting insolvency or other exclusions. Allen Lenth, EA-MBA at Executive Tax Solution should review those records, calculate the correct cancellation-of-debt (COD) income, and determine whether Form 982 or amended returns are appropriate. If exclusions apply (for example insolvency), the team will quantify excluded amounts and prepare the necessary filings or IRS responses. Clear documentation and timely filing are essential to substantiate Patricia's position and limit exposure.
Outcome
A successful handling will establish the correct taxable COD income, apply any allowable exclusions, and produce the forms or amended returns needed to correct reporting. The objective is to minimize Patricia's tax liability consistent with the tax code, provide documentation to support the position in case of IRS inquiry, and reduce the risk of penalties or further collection action.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
IRS Proposed Additional Crypto Tax (Ethan R.)
The IRS has proposed additional tax relating to hundreds of cryptocurrency transactions, and prompt, accurate response is needed to protect Ethan's correct tax liability and avoid escalation.
Background
Ethan Rodriguez is a 26-year-old cybersecurity analyst living in Plano, TX. The IRS has proposed additional tax based on hundreds of his cryptocurrency transactions. The volume and complexity of those transactions create a need to reconcile reported information with Ethan's records. No representation outcome is provided in the brief.
Our Approach
The case needs a detailed reconciliation of Ethan's crypto transaction history, cost basis records, and any exchange or wallet exports to identify reporting errors or omissions. Allen Lenth, EA-MBA at Executive Tax Solution should review the ledger, match IRS adjustments to source data, and prepare a formal response or amended filings if warranted. Communication with the IRS should document the analysis and request correction of mistaken adjustments or propose reasonable resolutions. Throughout, the goal is to preserve documentation and position Ethan to contest incorrect adjustments while minimizing penalties and interest.
Outcome
Successful handling should clarify Ethan's true tax liability for the disputed crypto activity, correct any IRS miscalculations, and minimize additional tax, penalties, and interest where supportable. If a balance remains, the resolution should include options for manageable payment or negotiated terms to prevent enforcement action. The objective is an accurate, documented settlement that protects Ethan's financial position and future compliance.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Missed Required Minimum Distribution (Geraldine W.)
Geraldine W., a 77-year-old retired teacher from Parker, TX, failed to take a required minimum distribution and needs corrective action to address the resulting tax issue.
Background
Geraldine W. is 77 and a retired teacher living in Parker, TX. She failed to take a required minimum distribution from her retirement account. That missed distribution has created a tax issue she needs help correcting. She is seeking professional assistance to resolve the situation.
Our Approach
Allen Lenth, EA-MBA at Executive Tax Solution should review Geraldine's retirement account statements and any applicable plan rules to determine the missed distribution amount and available corrective options. Next steps include coordinating with the account custodian to document options for completing or reconstructing the distribution and preparing any necessary tax filings or correspondence with the IRS. The process will also assess whether reasonable-cause relief or other administrative remedies are appropriate to limit penalties. Clear communication with Geraldine about timing, documentation needed, and potential tax implications is essential.
Outcome
Successful handling should produce a documented path to correct the missed distribution, appropriate adjustments to tax filings if needed, and mitigation of penalties where relief is justified. The goal is to restore compliance for Geraldine's retirement accounts, clarify any tax obligations arising from the missed RMD, and establish steps to prevent recurrence.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Tax Balance After Six-Figure Commission (Ashley T.)
Ashley T., a 30-year-old Realtor from Rowlett, has a $28,000 tax balance stemming from her first six-figure commission year, and addressing it is necessary to resolve her tax issue.
Background
Ashley Turner is 30 and works as a Realtor in Rowlett, TX. Her first six-figure commission year produced a tax balance of $28,000. This balance reflects the tax consequence of that higher-earning year. No other facts about payments, filings, or IRS actions are provided in the brief.
Our Approach
A tax resolution review should confirm how the six-figure commission was reported, verify any estimated tax or withholding shortfalls, and calculate the current balance including penalties and interest. Allen Lenth, EA-MBA at Executive Tax Solution, would evaluate available IRS options such as installment agreements or other resolution programs, determine eligibility, and prepare the necessary documentation to present those options to the IRS. The process includes negotiating terms and setting up a sustainable plan that fits Ashley's cash flow as a Realtor. Communication with the IRS and careful record review are required to move from assessment to resolution.
Outcome
The objective is to achieve a practical resolution for the $28,000 balance: this may include establishing an affordable payment arrangement or another appropriate IRS resolution, confirming accurate tax reporting for the commission year, and positioning Ashley to manage future tax obligations. Successful handling should leave Ashley with a clear plan to address the balance while minimizing long-term disruption to her business and finances. The outcome should be documented terms the client can follow and monitor.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Incorrect employer stock cost basis (Raymond C.)
Employer-reported stock transactions for Raymond C. were reported without the correct cost basis, and prompt correction matters to prevent overstated taxable gain, penalties, and additional interest.
Background
Raymond C. is a 58-year-old semiconductor engineer living in Garland, TX. Employer stock transactions on his tax reporting were recorded without the correct cost basis. This discrepancy creates uncertainty in his taxable gain calculation. Accurate basis information is required to determine his true tax liability.
Our Approach
Gather and reconcile all documentation related to the employer stock transactions, verify reported basis with the employer and broker, and determine whether amended returns or corrections to reporting are required. Allen Lenth, EA-MBA at Executive Tax Solution can coordinate the documentation review, prepare any necessary amended filings, and communicate with reporting parties and the IRS as appropriate. Timely, accurate corrections reduce the risk of IRS adjustments and limit potential penalties and interest.
Outcome
Successful handling should establish the correct cost basis for the employer stock transactions, update any affected tax returns or IRS reporting, and minimize any additional tax, penalties, and interest. The objective is an accurate tax liability and clean reporting going forward, with documentation in place to support the adjusted basis if the IRS reviews the transactions.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=EVd2SS2eeUQ&list=PLVhzklnDWv7fz6RwEd1iTUTwkJhHcx5Tr
Incorrect employer stock cost basis (Raymond C.)
Employer stock transactions were reported without the correct cost basis, creating a risk of incorrect capital gain reporting and potential IRS adjustment—prompt correction matters to ensure accurate tax liability.
Background
Raymond C. is 58 and works as a semiconductor engineer in Garland, TX. His employer stock transactions were reported without the correct cost basis. This reporting discrepancy affects how gains or losses will be calculated on his tax returns.
Our Approach
Allen Lenth, EA-MBA at Executive Tax Solution should review the brokerage 1099-Bs and the employer equity documentation to reconstruct the true cost basis for each transaction. That work typically includes reconciling employer grant/vesting statements with brokerage reports, preparing corrected Form 8949 entries and Schedule D calculations, and, if returns were already filed, preparing amended returns (Form 1040-X) or requesting corrected 1099-B adjustments from the broker. Executive Tax Solution would also correspond with the brokerage or the IRS as needed to document and support the basis adjustments so Raymond's taxable gain/loss is reported correctly.
Outcome
The objective is to have accurate cost basis reported so capital gains or losses are calculated correctly, reducing the risk of IRS notices, preventing overpayment or underpayment of tax, and ensuring Raymond's tax records reflect the correct tax liability. Successful handling should produce corrected return entries or amended filings and documentation that supports the adjusted basis for future compliance.
🚨 Facing a serious IRS problem? Get IRS Notice Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Employer Stock Basis Reporting Error (Raymond C.)
Employer stock transactions were reported with incorrect cost basis, creating potential capital gains misreporting that should be corrected to avoid overpayment, penalties, or IRS inquiries.
Background
Raymond C. is a 58-year-old semiconductor engineer from Garland, TX. Employer stock transactions on his tax documents were reported without the correct cost basis. The incorrect reporting affects how capital gains or losses are calculated on the return. No IRS outcome or remediation is provided in the brief.
Our Approach
The immediate need is to assemble all broker statements, equity compensation plan records, Form 1099-Bs and any employer grant/exercise documentation to establish the correct cost basis and holding periods. Allen Lenth, EA-MBA with Executive Tax Solution should review those records, prepare corrected reporting (Form 8949 and Schedule D or amended returns if required), and reconcile the corrected basis with IRS transcripts to prevent future notices. If adjustments generate additional tax, interest, or penalties, Executive Tax Solution can evaluate mitigation options and communicate with the IRS on Raymond's behalf.
Outcome
A successful resolution will establish and document the correct cost basis and holding periods, update the tax reporting so capital gains/losses are accurate, and minimize any additional tax, penalties, and interest. The objective is to have properly supported filings or amendments and to resolve any IRS discrepancies or notices arising from the original incorrect reporting.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Installment Agreement Needed — $34,000 Balance (Heather C.)
A 45-year-old physical therapist in Wylie, TX needs an IRS installment agreement after a private therapy practice generated a $34,000 tax balance; timely action matters to establish an affordable payment plan and reduce collection risk.
Background
Heather C., age 45, is a physical therapist operating a private therapy practice in Wylie, Texas. Her practice generated an outstanding IRS balance of $34,000. She requires an installment agreement to address the liability while preserving practice cash flow and day-to-day operations.
Our Approach
First, gather the IRS notices and verify the exact balance, penalties, and interest owed, and compile current business and personal financials to determine an affordable monthly payment. Allen Lenth, EA-MBA at Executive Tax Solution should prepare and submit the required installment agreement application and documentation, and communicate with the IRS on Heather's behalf. If necessary, evaluate alternative collection options and verify eligibility criteria so the proposed plan is realistic for the practice's cash flow.
Outcome
A successful resolution would secure an IRS-approved installment agreement with monthly payments Heather can sustain, documented terms that limit immediate collection actions, and a payment schedule aligned with her practice cash flow. The objective is to resolve the outstanding $34,000 liability over a manageable term while minimizing further penalties and preserving the ability to operate the therapy practice.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Unfiled Returns & Significant 1099 Income (Samuel O.)
Four years of unfiled tax returns combined with significant 1099 income require prompt filing and assessment to determine tax liability and avoid escalating penalties and collection action.
Background
Samuel Ortiz is a 38-year-old plumber in Murphy, TX who has four years of unfiled federal tax returns. His income includes substantial 1099-reported amounts, which can create self-employment tax and estimated tax obligations. The unfiled years mean the IRS has no current assessment of his true tax liability for those periods.
Our Approach
Executive Tax Solution, with Allen Lenth, EA-MBA involved as appropriate, should gather all income records (1099s, bank statements, and any expense documentation), prepare and file the four missing returns, and accurately calculate self-employment and estimated tax obligations. The engagement should also assess eligibility for penalty relief, determine current balances including penalties and interest, and evaluate collection options such as installment agreements or other relief to manage cash flow and reduce collection risk.
Outcome
The objective is to have all four returns properly filed and liabilities accurately quantified, to minimize penalties where allowed, and to establish an affordable payment plan or other collection relief if tax is owed. Proper handling should reduce the risk of liens, levies, or other enforcement while restoring compliance and giving Samuel a sustainable path forward.
🚨 Facing a serious IRS problem? Get Unfiled Return Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
IRS Applied Current Refund to Older Debt (Angela W.)
The IRS applied Angela's current tax refund to an older tax debt she believes was already paid, and prompt action is needed to recover the offset and correct her account.
Background
Angela W. is 51 and works as a medical practice administrator in Sachse, TX. The IRS applied her current tax refund to an older tax debt. Angela believes that the older debt was previously paid and seeks correction of the IRS account and recovery of the applied refund.
Our Approach
Executive Tax Solution, led by Allen Lenth, EA-MBA, needs to obtain Angela's IRS account transcripts and gather her payment documentation (bank records, cancelled checks, or payment confirmations) to identify why the refund was offset. Those records should be submitted to the IRS with a formal request for reallocation or refund, and Allen Lenth can communicate with the IRS on her behalf to pursue reconsideration or administrative appeal if required. The team should also document communications and monitor the account to prevent further erroneous collection activity while the issue is reviewed.
Outcome
The objective is for the IRS to verify Angela's payment history, correct any erroneous application of her current refund, and return funds if appropriate. Successful handling should also establish an accurate account balance, provide a clear explanation of any remaining liability, and shield her from additional collection action while the matter is resolved.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
1099-K Gross Sales Discrepancy (Tyler A.)
A 22-year-old online reseller in Farmersville received a 1099‑K reporting $63,000 of gross sales while his actual profit was only a fraction, and resolving this discrepancy matters because it can produce an inflated tax assessment.
Background
Tyler Adams is 22 and operates as an online reseller in Farmersville, TX. A 1099‑K reports $63,000 of gross sales. His actual profit was only a fraction of that reported amount.
Our Approach
The immediate need is to gather marketplace transaction reports, bank statements, invoices for inventory and supplies, records of returns/refunds and platform fees to reconcile the 1099‑K to true gross receipts and cost of goods sold. Allen Lenth, EA‑MBA at Executive Tax Solution can review those records, prepare the correct Schedule C (or amended return if necessary), and assemble a factual reconciliation to present to the IRS or to support an accurate original filing. If an IRS notice or assessment follows, Executive Tax Solution can advise on responding and, if required, pursue appropriate collection options while substantiating legitimate deductions.
Outcome
The objective is to ensure filed taxable income reflects net profit rather than the unadjusted 1099‑K amount by substantiating expenses and cost of goods sold, thereby minimizing any incorrect tax liability. Successful handling should produce documented reconciliation to support the return or IRS response and, if a balance remains, create a sustainable path for resolution (payment plan or other collection options). Overall success aligns reported tax with economic reality and reduces exposure to unnecessary penalties or interest.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
CP2000: Proposed tax from securities of deceased spouse (Deborah M.)
Deborah M., a 63-year-old widow in Princeton, TX, received a CP2000 notice proposing tax related to securities that belonged to her deceased husband — prompt, documented response is needed to prevent an incorrect assessment or collection action.
Background
Deborah M., age 63 and a widow living in Princeton, TX, received a CP2000 notice from the IRS. The notice proposes additional tax tied to securities that belonged to her deceased husband. The brief facts identify the source of the discrepancy as those securities and Deborah as the surviving spouse who received the notice.
Our Approach
The next steps are to gather and organize documentary evidence (death certificate, brokerage statements, account ownership records, Form 1099s, and any estate or probate paperwork) to show who was responsible for the reported income. Allen Lenth, EA-MBA at Executive Tax Solution should review the CP2000, prepare a written, documented response to the IRS, and, if necessary, communicate with the payer or brokerage to obtain corrected information. The response must clearly establish whether the income belongs to the deceased, the estate, or Deborah, and request appropriate correction or reallocation to avoid an improper assessment. If additional filings or amended returns are required, Allen Lenth can advise and prepare them to align reporting with the supporting records.
Outcome
Successful handling should result in the IRS correcting or rescinding the CP2000 if the proposed income is incorrectly attributed to Deborah, or accurately reallocating the income to the proper taxpayer (the deceased or the estate) if documentation supports that. The objective is to eliminate any erroneous tax liability or collection exposure for Deborah, ensure the tax account reflects the correct taxpayer and reporting, and prevent future notices on the same issue by obtaining corrected information from brokers or the IRS.
🚨 Facing a serious IRS problem? Get IRS Notice Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=gSOMg45nNMk&list=PLVhzklnDWv7ci3mFdpkgs_WxdUuTnNB1y
Self-Employment Tax Confusion (Kevin W.)
Received three 1099-NECs as an independent contractor and did not understand self-employment tax; timely action matters to determine correct tax liability and avoid penalties.
Background
Kevin W. is a 29-year-old welder from Josephine, TX who was treated as an independent contractor. He received three 1099-NECs and did not understand self-employment tax. He needs clarity on how those forms affect his tax filing and obligations as a self-employed worker.
Our Approach
Collect all three 1099-NECs and documentation of related business expenses, then calculate net self-employment income and self-employment tax liability to determine what must be reported on Schedule C and Schedule SE. Allen Lenth, EA-MBA at Executive Tax Solution should review the records, advise on allowable deductions, and recommend whether estimated tax payments or an IRS payment arrangement are needed. The focus is accurate reporting and minimizing penalties by addressing any underpayment promptly.
Outcome
Successful handling should produce an accurate calculation of taxable self-employment income and the associated self-employment tax, clear filing guidance (original or amended returns if required), and a practical plan for paying any tax due or setting up estimated payments. It should also provide steps to reduce future surprise liabilities through proper withholding or quarterly estimates and document any reasonable-cause arguments if penalties are at issue.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Payroll Tax Deposit Delinquency (Maria)
Maria, a 40-year-old daycare owner in Nevada, TX, fell behind on federal payroll tax deposits during a cash-flow shortage, and prompt action matters to limit penalties, interest, and enforcement risk.
Background
Maria is a 40-year-old daycare owner in Nevada, TX. During a period of cash-flow shortage she fell behind on required federal payroll tax deposits. The delinquency affects the business's federal payroll obligations and creates exposure to IRS collection activity. No other case outcomes or amounts were provided in the brief.
Our Approach
The immediate needs are to assess the deposit history, quantify outstanding federal payroll tax liabilities, and establish a plan to bring deposits current while restoring timely payroll tax compliance. Executive Tax Solution, and specifically Allen Lenth, EA-MBA, would work with Maria to compile payroll records, confirm deposit schedules, and contact the IRS to negotiate appropriate collection options such as an installment agreement or other relief that preserves business operations. Concurrently, steps should be taken to implement reliable deposit procedures (EFTPS or documented remittance process) to prevent recurrence. Clear communication with the IRS and accurate documentation will be essential to reduce enforcement risk and stabilize the daycare's finances.
Outcome
A successful resolution should establish an actionable pathway to bring federal payroll tax deposits current, minimize accruing penalties and interest where possible, and secure an IRS-approved collection arrangement that fits the daycare's cash flow. The plan should restore ongoing payroll tax compliance, reduce the risk of levies or liens, and enable Maria to focus on operating her business without recurring payroll tax interruptions.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Owes $86,000 after profitable commissions (Jonathan P.)
Jonathan P., a 48‑year‑old commercial realtor in Fairview, TX, owes $86,000 in federal taxes after two exceptionally profitable commission years and needs prompt tax resolution to restore cash flow and avoid IRS collection actions.
Background
Jonathan P. is 48 and works as a commercial realtor in Fairview, TX. After two exceptionally profitable commission years he now has an $86,000 federal tax liability. The liability stems from those high commission years and represents a material burden on his business and personal finances. He needs a plan to address the balance while preserving operating capital.
Our Approach
The next steps are to gather the applicable tax returns, commission records, and estimated tax payment history to verify the $86,000 liability and compute current balance including penalties and interest. Allen Lenth, EA‑MBA at Executive Tax Solution should evaluate Jonathan's cash flow and assets to determine eligibility for an installment agreement, potential penalty abatement, or other collection alternatives such as an Offer in Compromise if qualifying criteria are met. Representation by Executive Tax Solution can include negotiating a manageable payment plan with the IRS, stopping collection escalations while documentation is assembled, and implementing tax planning to prevent reoccurrence.
Outcome
A successful handling should produce a sustainable resolution that stops immediate collection pressure, provides an affordable payment arrangement or other appropriate compromise based on ability to pay, and minimizes additional penalties and interest where possible. It should also restore predictable cash flow for Jonathan's real estate practice and establish steps for estimated tax compliance going forward. The objective is a clear, documented agreement with the IRS that Jonathan can meet without jeopardizing his business operations.
🚨 Facing a serious IRS problem? See Offer in Compromise Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Qualified charitable distribution incorrectly taxed (Sharon K.)
A qualified charitable distribution (QCD) from her IRA was incorrectly shown as fully taxable; correcting the reporting matters to reflect the distribution's proper tax treatment.
Background
Sharon K. is 72 and a retired pharmacist living in McKinney, TX. A qualified charitable distribution from her IRA was incorrectly reported as fully taxable on her tax records. The misreporting affects the tax treatment recorded for that IRA distribution. Sharon seeks clarification and correction of the error.
Our Approach
Confirm the IRA custodian's reporting and obtain any documentation showing the distribution was a QCD (including charitable acknowledgement). If the custodian issued an incorrect Form 1099-R, request a corrected 1099-R and then prepare an amended return to reflect the non-taxable treatment. Allen Lenth, EA-MBA at Executive Tax Solution should review the records, coordinate corrections with the custodian, and file the appropriate amendment and supporting documentation with the IRS to clear the misreporting.
Outcome
Successful handling should document the distribution as a qualified charitable distribution, secure corrected reporting from the IRA custodian if needed, and amend Sharon's return so the distribution is not treated as fully taxable. This should align Sharon's tax records with the charitable distribution rules and reduce the risk of future notices or incorrect assessments related to that IRA distribution.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Unreported side catering income (Anthony G.)
Side catering income received through payment apps was not reported on Schedule C, creating a risk of underreported self-employment income and potential tax, penalties, and interest if not corrected.
Background
Anthony G. is a 35-year-old restaurant chef in Dallas, TX. He received side catering income through payment apps that was never included on a Schedule C. The income streams were separate from his restaurant employment.
Our Approach
Gather and reconcile all payment app records and related expenses to quantify the unreported receipts, then prepare and file the appropriate Schedule C filings or amended returns for the affected years. Allen Lenth, EA-MBA at Executive Tax Solution should calculate self-employment tax, estimate penalties and interest, and determine whether to pursue penalty relief or an installment agreement. Clear documentation of income and allowable business expenses is needed to minimize tax exposure and support any positions taken with the IRS.
Outcome
Successful handling should result in accurate reporting of the catering income on Schedule C, an accurate calculation of tax and self-employment liabilities, and a practical collection solution if taxes are owed (for example, payment plan or negotiated terms). It should also reduce the risk of future enforcement by establishing proper reporting and recordkeeping practices for payment-app receipts.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Underreported Restricted Stock Income (Jennifer R.)
The IRS alleges Jennifer R., a 44-year-old Human Resources Director in Mesquite, TX, underreported income from restricted stock — prompt action matters to document correct income and address any proposed adjustments.
Background
The taxpayer is a 44-year-old Human Resources Director living in Mesquite, TX. The IRS alleges that restricted stock income was underreported. No additional facts about amounts, years, or prior filings were provided.
Our Approach
A documented review of the restricted stock grant, vesting schedule, employer reporting (W-2, 1099-B), and the taxpayer's returns is required to determine the correct tax treatment. Allen Lenth, EA-MBA at Executive Tax Solution should gather employer statements, brokerage records, and any plan documentation, then prepare a technical response or amended return as appropriate and communicate with the IRS to clarify the assessment. The goal of the engagement is to present the factual and tax basis for the reported income so the IRS can reconsider the allegation. Throughout, Executive Tax Solution will explain options and next steps to the client and, if needed, negotiate timing or resolution pathways with the IRS.
Outcome
Successful handling should establish the correct reported income for the restricted stock, correct any return discrepancies if necessary, and resolve the IRS allegation with the minimum additional tax, penalties, and interest consistent with the documentation. It should also leave the taxpayer with a clear record of the resolution and, if applicable, an amended return or formal IRS agreement documenting the final tax treatment.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=EVd2SS2eeUQ&list=PLVhzklnDWv7fz6RwEd1iTUTwkJhHcx5Tr
Defaulted IRS Installment Agreement (Walter T.)
Walter T., a 57-year-old truck owner-operator from Sunnyvale, TX, owes $59,000 and has defaulted on an IRS installment agreement, making prompt action necessary to avoid enforced collections.
Background
Walter T. is 57 and works as a truck owner-operator in Sunnyvale, TX. He currently owes $59,000 to the IRS and has defaulted on an existing installment agreement.
Our Approach
Immediate action should include contacting the IRS to understand the default status and potential enforcement actions, and compiling current income, expense, and business cash flow information to assess ability to pay. Allen Lenth, EA-MBA with Executive Tax Solution should evaluate options such as reinstating or renegotiating the installment agreement, requesting currently not collectible status, or preparing alternative proposals like an Offer in Compromise if eligibility exists. Proper documentation and timely communication with the IRS are required to prevent liens or levies and to negotiate terms that align with Walter's operating cash flow.
Outcome
A successful resolution should result in a sustainable plan to address the $59,000 liability—either through a reinstated or renegotiated installment agreement or an alternative collection resolution that matches Walter's ability to pay—while minimizing the risk of levies or liens and preserving his ability to operate as a truck owner-operator. The objective is to secure terms that provide predictable payments and protect business cash flow.
🚨 Facing a serious IRS problem? See Offer in Compromise Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Unfiled Business Tax Returns (Brittany L.)
Brittany L., a 27-year-old esthetician from Fate, TX, has not filed tax returns since opening her studio three years ago, creating potential tax liabilities and compliance risk that require prompt action.
Background
Brittany Lee is a 27-year-old esthetician who opened her own studio in Fate, TX three years ago. Since opening the studio she has not filed a tax return. The lack of filings may affect her tax liability, penalties, and eligibility for IRS collection resolution options. Addressing the missing returns is necessary to determine her true tax position.
Our Approach
The next steps are to gather three years of business income and expense records, prepare and file the missing returns, and calculate any tax, penalties, and interest owed. Allen Lenth, EA-MBA at Executive Tax Solution should review her records, ensure proper self-employment reporting, and evaluate appropriate payment or resolution options with the IRS. If liabilities exist, the plan should include exploring installment agreements or other IRS programs to manage payment and minimize enforcement risk. Timely, accurate filings will be prioritized to restore compliance and open the door to collection solutions.
Outcome
Successful handling should result in the missing returns being filed accurately, a clear calculation of taxes, penalties, and interest, and a feasible plan to address any balance due. The objective is to achieve compliance, limit further penalties or enforcement actions, and establish an affordable resolution path if payment is required. Restoring current filing status will also preserve Brittany's options with the IRS going forward.
🚨 Facing a serious IRS problem? Get Unfiled Return Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Pension Distribution IRS Notice (Dennis H.)
Received an IRS notice after taking a pension distribution to pay medical expenses; prompt action is needed to clarify tax treatment and prevent escalation.
Background
Dennis Harper is 66 and a retired police officer living in Heath, TX. He took a pension distribution to pay medical expenses and subsequently received an IRS notice related to that distribution. The notice concerns the reporting or tax treatment of the pension distribution and requires a response to establish the correct tax position.
Our Approach
Collect the IRS notice, the pension distribution statement (e.g., Form 1099-R), and documentation of the medical expenses used to justify the distribution. Allen Lenth, EA-MBA at Executive Tax Solution should review the documents to verify whether the distribution is taxable or qualifies for any exceptions, and determine if an amended return or a formal response to the IRS with substantiation is needed. If tax is owed, evaluate options such as payment plans or penalty abatement and prepare the necessary submissions to the IRS to address the notice.
Outcome
The objective is to establish the correct tax treatment of the pension distribution and resolve the IRS notice with appropriate documentation or filings. Successful handling should minimize any assessed penalties or interest when justified and, if tax liability remains, arrange a manageable resolution such as a payment plan or other relief. Ultimately the case should clear the notice and reduce the risk of further collection action.
🚨 Facing a serious IRS problem? See Penalty Abatement Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Duplicate 1099-K Reporting (Monica F.)
Multiple 1099-K forms caused business receipts to be reported twice for Monica, and correcting this matters to ensure accurate taxable income and avoid IRS notices or incorrect liability.
Background
Monica Flores is 31 and works as a wedding photographer in Rockwall, TX. She received multiple 1099-K forms that resulted in her business receipts being reported twice. The duplicate reporting creates a discrepancy between reported income on information returns and her business records.
Our Approach
Allen Lenth, EA-MBA at Executive Tax Solution should reconcile the 1099-K totals with Monica's bookkeeping and payment records to identify which transactions were duplicated, then contact payment processors or payors to request corrected 1099-Ks if appropriate. If tax returns already reflect double-counted amounts, prepare amended returns and compile supporting documentation to explain the corrections. Executive Tax Solution should also prepare correspondence and reconciliation schedules to submit to the IRS or to use in responding to any notices.
Outcome
The objective is to have Monica's gross receipts accurately reflected so her tax filings match actual business income, to mitigate any additional tax, penalties, or notices stemming from duplicate reporting, and to obtain corrected documentation from payors to prevent recurrence. Successful handling should leave a clear audit trail and, where needed, amended returns or formal correspondence filed to substantiate the corrected amounts.
🚨 Facing a serious IRS problem? Get IRS Notice Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Stock sales and bonus tax liability (Joseph B.)
Stock sales and bonus compensation produced a large unexpected tax liability for Joseph B., an airline pilot, and prompt tax resolution is needed to limit penalties and collection risk.
Background
Joseph B. is 52 and works as an airline pilot in Allen, TX. Stock sales and bonus compensation resulted in a large unexpected tax liability. The liability was not anticipated based on prior withholding patterns. Timely assessment and response are required to address the balance due.
Our Approach
Work with Allen Lenth, EA-MBA at Executive Tax Solution to assemble documentation for the stock sales and bonus compensation (trade confirmations, brokerage statements, and W-2/bonus records) and accurately calculate taxable income, cost basis, and withholding shortfalls. Evaluate correction options such as amended returns if basis was reported incorrectly, and analyze IRS collection alternatives (installment agreement, temporary delay, or other relief) to match Joseph's cash flow. Prepare and submit required forms and negotiate payment terms or other solutions with the IRS as appropriate, while advising adjustments to withholding or estimated payments to prevent recurrence.
Outcome
The objective is to establish the correct tax liability, minimize penalties and interest where eligible, and secure a manageable resolution such as an installment agreement or other IRS-appropriate arrangement. Successful handling should protect Joseph's income and assets from enforced collection, restore compliant filing and payment status, and implement tax-planning steps to avoid a similar surprise in future years.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Unwithheld 1099 Relief Income (Amanda P.)
Relief work at multiple clinics produced substantial 1099 income with no withholding, creating an unpaid tax and self-employment exposure that requires prompt action to avoid penalties and collection risk.
Background
Amanda P. is a 36-year-old veterinarian from Lucas, TX who performed relief work at several clinics. That relief work generated substantial 1099 income with no withholding. There is no information provided about filings, payments, or prior IRS contact in the brief. The lack of withholding increases potential income and self-employment tax liability.
Our Approach
The next steps are to gather all 1099s and income records from the relief engagements, compute the total taxable and self-employment income, and determine any unpaid federal tax, estimated tax shortfall, and penalties. Allen Lenth, EA-MBA at Executive Tax Solution would typically review returns or prepare necessary filings or amended returns, calculate options (payment plan, installment agreement, or other relief where appropriate), and represent the taxpayer in communications with the IRS. Documentation of business expenses and records of estimated tax payments should be compiled to reduce net tax where supported. Prompt engagement is important to minimize penalties, interest, and collection exposure.
Outcome
A successful resolution should accurately report the relief income on the appropriate returns, establish the true tax and self-employment liability, and secure an affordable payment or other resolution path that addresses the balance while minimizing penalties and future collection actions. It should also put Amanda P. on a compliant path for current and future estimated tax obligations to avoid repeat underwithholding on 1099 income. Representation by Allen Lenth, EA-MBA at Executive Tax Solution aims to ensure proper documentation, timely filings, and professional negotiation with the IRS if needed.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
LT11 Final Notice of Intent to Levy (Carlos M.)
Carlos M., a 42-year-old roofing contractor in Lavon, TX, received an LT11 Final Notice of Intent to Levy after ignoring several collection notices, and immediate action matters to prevent enforced collection against income or business accounts.
Background
Carlos M. is a 42-year-old roofing contractor in Lavon, TX. He received an LT11 Final Notice of Intent to Levy. This LT11 followed a period in which he ignored several IRS collection notices. No other case outcomes or amounts are provided in the brief.
Our Approach
Immediate steps should include verifying the LT11 details, confirming outstanding balances and filing status, and contacting the IRS or a qualified representative to stop levy action where possible. Engage Executive Tax Solution and Allen Lenth, EA-MBA to review the notices, prepare required documentation, and explore appropriate collection alternatives such as a payment plan or a Collection Due Process request. Timely communication and documentation are critical to preserve appeal rights and to buy time for negotiating a resolution.
Outcome
The objective of successful handling is to halt levy enforcement actions, preserve business income and accounts, and secure a manageable collection solution (for example an installment agreement or approved appeal) that fits the client's circumstances. Effective representation should also protect the client's appeal rights and provide a clear plan to resolve the underlying tax liability without further disruption to roofing business operations.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/shorts/H8qJEeIR5dY
Insufficient Pension Withholding (Elaine S.)
Retired federal employee Elaine S. faces an unexpected $12,000 federal tax balance due to insufficient withholding from her pension, and prompt action matters to limit penalties, interest, and collection risk.
Background
Elaine S. is a 69-year-old retired federal employee living in Richardson, TX. Insufficient withholding from her federal pension resulted in an unexpected $12,000 federal tax balance. This balance creates potential for penalties and interest if not addressed. Elaine is seeking guidance on next steps to resolve the liability and prevent recurrence.
Our Approach
The immediate needs are to confirm the withholding shortfall, calculate any estimated underpayment penalties and interest exposure, and determine feasible options to resolve the $12,000 balance. That includes adjusting pension withholding going forward and evaluating payment alternatives such as an IRS installment agreement or timely estimated payments. Allen Lenth, EA-MBA at Executive Tax Solution should be referenced to prepare accurate projections, communicate with the IRS if needed, and set up the corrective withholding and payment plan that fit Elaine's cash flow.
Outcome
A successful resolution will fully address the $12,000 balance through an affordable payment arrangement or other appropriate IRS solution, stop further accrual of preventable penalties by correcting withholding, and establish a sustainable withholding or payment plan to avoid future surprises. The objective is to minimize total cost (penalties and interest) while preserving Elaine's financial stability in retirement.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
CP2000 for Cryptocurrency Sales (Trevor N.)
Trevor received a CP2000 because the IRS shows gross proceeds from cryptocurrency sales with no cost basis reported; timely action matters to document basis and correct any proposed tax adjustment.
Background
Trevor Nguyen is 24 and works as a software developer in Plano, TX. His cryptocurrency sales generated a CP2000 notice because the IRS received gross proceeds but no cost basis information. The notice reflects a mismatch between what the IRS has on file and the information needed to calculate taxable gain or loss. Trevor needs to address the notice to reconcile records.
Our Approach
The next steps are to gather complete transaction records from exchanges and wallets, establish cost basis for each disposition, and reconcile those records against the IRS-reported gross proceeds. Prepare the required documentation and either submit a timely CP2000 response or file an amended return showing corrected basis and gain/loss calculations. Allen Lenth, EA-MBA at Executive Tax Solution should review the calculations, assemble supporting evidence, and represent Trevor in communications with the IRS to ensure the taxpayer's position is clearly documented.
Outcome
Successful handling should produce a documented reconciliation of reported gross proceeds and established cost basis that addresses the CP2000 discrepancies. The objective is to have the IRS accept corrected basis and taxable amounts or otherwise adjust the proposed assessment to reflect actual gains or losses. Proper documentation and timely response should minimize unexpected tax assessments and reduce the risk of penalties or further collection activity.
🚨 Facing a serious IRS problem? Get IRS Notice Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Unreported basis on inherited stock (Cynthia A.)
Cynthia A., a 61-year-old school principal in Parker, TX, received an IRS notice after selling inherited stock without correctly reporting the cost basis, and timely response is needed to prevent incorrect tax, penalties, or collection action.
Background
Cynthia A. is 61 and works as a school principal in Parker, TX. She inherited stock and later sold those shares but did not report the correct basis on her tax filing. The IRS has issued a notice regarding the transaction. The notice centers on the reporting of basis for the inherited stock sale.
Our Approach
Collect all inheritance documents, estate records, and broker statements showing acquisition details and any basis adjustments, plus the Form 1099-B or other broker reporting the sale. Allen Lenth, EA‑MBA at Executive Tax Solution should review the documentation to reconstruct the correct basis, prepare any necessary amended returns or responses to the IRS notice, and document the calculation supporting a reduced gain or corrected filing. If assessments or penalties appear, the team will prepare a penalty abatement request or negotiate collection options as appropriate. Clear, documented basis evidence and a timely, formal response are required to dispute or correct the IRS position.
Outcome
A successful resolution should correct the reported basis so Cynthia's tax liability reflects the proper gain or loss from the inherited stock sale, minimize or remove penalties related to misreporting, and resolve the IRS notice without unexpected collection escalation. The objective is an accurate assessment, documented in amended returns or IRS correspondence, and a negotiated plan only if a remaining liability is confirmed.
🚨 Facing a serious IRS problem? See Penalty Abatement Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Unreported 1099 Income (Marcus R.)
A 33-year-old firefighter in Rowlett, TX failed to report 1099 income from a weekend lawn-care business; prompt corrective action matters to accurately fix returns, settle any additional tax, and avoid escalation with the IRS.
Background
Marcus R. is 33 and works as a firefighter in Rowlett, TX. He operated a weekend lawn-care business. That business produced 1099 income that he failed to report on his tax return.
Our Approach
The necessary steps are to identify which tax year(s) omitted the 1099 income, prepare amended returns or corrected filings, and calculate additional income tax plus self-employment tax and any associated penalties and interest. Allen Lenth, EA-MBA at Executive Tax Solution can prepare the amended filings, document the 1099 income, and evaluate payment or collection-avoidance options such as an installment agreement. If needed, Executive Tax Solution can communicate with the IRS on Marcus R.'s behalf to propose manageable payment arrangements and prevent enforcement actions.
Outcome
Successful handling should result in accurate amended return(s) that report the 1099 income, a clear calculation of tax owed including self-employment tax, and either payment in full or an approved payment arrangement that minimizes penalties and exposure to enforcement. The goal is to bring Marcus R. into compliance while preserving his financial stability and reducing the risk of future IRS collection activity.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Underpaid Estimated Taxes (Priya P.)
Priya P., a 39-year-old dentist in Garland, TX, owes $71,000 because quarterly estimated payments did not keep pace with practice income; prompt action matters to address the large tax liability.
Background
Priya P. is a 39-year-old dentist practicing in Garland, TX. Her quarterly estimated payments failed to keep pace with her practice income. As a result, she currently owes $71,000 to the IRS.
Our Approach
The next steps are to analyze recent tax returns and the history of estimated payments to verify the $71,000 balance and identify any filing or calculation issues. Allen Lenth, EA-MBA at Executive Tax Solution should evaluate available IRS payment options — including installment agreements — and compute a realistic repayment plan tied to practice cash flow. Documenting practice income, expenses, and monthly cash flow is necessary to support a payment proposal and to design an adjusted estimated-payment strategy to prevent recurrence.
Outcome
The objective is to confirm the correct tax balance and put an affordable IRS payment arrangement in place that aligns with the practice's cash flow. Successful handling should also establish an updated estimated-payment or withholding strategy to reduce the risk of future underpayments and to manage the outstanding $71,000 in a sustainable way.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
IRA rollover recharacterized as taxable distribution (Robert L.)
The IRS treated an IRA rollover as a taxable distribution, creating potential unexpected tax liability that should be corrected to protect retirement savings.
Background
Robert L. is a 74-year-old retired aerospace engineer living in Wylie, TX. He completed an IRA rollover that the IRS has classified as a taxable distribution. This classification, if not corrected, may result in additional tax, penalties, and interest tied to the rollover amount. The matter requires documentation review and possible interaction with the IRS to clarify the transaction.
Our Approach
Collect and organize all rollover documentation (trustee statements, transfer records, any Form 1099-R) and confirm whether the movement was a direct trustee-to-trustee rollover or a distribution-and-redeposit. Allen Lenth, EA-MBA at Executive Tax Solution should evaluate the evidence to determine if the rollover was properly nontaxable and prepare the appropriate IRS submissions, which may include requesting a corrected information return or filing an amended return. If necessary, Executive Tax Solution can formally communicate with the IRS to dispute the taxable treatment and seek abatement of related penalties and interest. Clear, timely documentation and representation are necessary to re-establish the rollover's correct tax treatment and limit financial exposure.
Outcome
The objective is to have the IRS recognize the transaction as a nontaxable rollover (if supported by the records), remove or reduce any associated tax, penalties, and interest, and correct information returns so Robert's tax record and retirement accounts reflect the proper treatment. Successful handling should restore the rollover status or otherwise minimize tax impact while preserving retirement assets and limiting ongoing collection risk.
🚨 Facing a serious IRS problem? Get IRS Resolution Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
CP2000 Notice — Omitted Contract Nursing Income (Danielle B.)
Danielle B., a 28-year-old registered nurse in Murphy, TX, received a CP2000 after income from occasional contract nursing shifts was omitted, and prompt action is needed to address the IRS proposed changes.
Background
Danielle B. is a 28-year-old registered nurse living in Murphy, TX. She did occasional contract nursing shifts and did not report some of that income. As a result, she received a CP2000 notice from the IRS proposing additional income. The notice identifies a mismatch between reported income and third-party information.
Our Approach
Gather all relevant records — 1099s, pay stubs, bank deposits, and any correspondence from staffing agencies — then compare them to the income amounts shown on the CP2000. Prepare a documented response to the CP2000 explaining omitted amounts or agreeing with the proposed adjustment; if the return needs correction, consider preparing an amended return. Work with Allen Lenth, EA-MBA at Executive Tax Solution to ensure the response is timely, accurate, and includes supporting documentation to minimize exposure. Timely submission and clear documentation are essential to prevent escalation and ensure the IRS has correct information.
Outcome
The objective is to resolve the CP2000 by either reconciling the IRS proposed income to Danielle's records or correcting her return so the tax assessment accurately reflects her contract nursing income. Successful handling should produce a clear IRS response path, limit unnecessary penalties or interest where possible, and close the notice without further collection action. Documentation and a timely, professional response via Executive Tax Solution and Allen Lenth, EA-MBA should provide the best pathway to resolution.
🚨 Facing a serious IRS problem? Get IRS Notice Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=UryylZX7lxE&list=PLVhzklnDWv7eM_po5olweyCLIh8JMoH4w
Underpaid Estimated Taxes — $43,000 (Michael C.)
HVAC company owner owes $43,000 after several profitable years with insufficient estimated tax payments, and timely action matters to address the outstanding liability.
Background
Michael C. is a 46-year-old HVAC company owner in Sachse, TX. After several profitable years he did not make sufficient estimated tax payments and now owes $43,000. The balance reflects underpaid estimates tied to those profitable years.
Our Approach
First, verify the $43,000 balance and compile recent tax returns and payment records to identify the underpayment periods and any applicable penalties or interest. Allen Lenth, EA‑MBA at Executive Tax Solution should evaluate available IRS collection options and recommend the most appropriate path—such as an installment agreement or other collection alternatives—based on cash flow and business stability. Simultaneously establish a correct estimated tax payment schedule for future quarters so the liability does not recur.
Outcome
The objective is to create a practical plan to address the $43,000 liability that aligns with Michael C.'s business cash flow, bring the tax account to current compliance, and implement an estimated tax strategy to prevent future underpayments. Successful handling should leave the business with a manageable payment arrangement and ongoing tax payment discipline.
🚨 Facing a serious IRS problem? See IRS Payment Plan Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/watch?v=PMePuXmNR6s&list=PLVhzklnDWv7d2ITPUQaMIMpEr98xjjj_p
Bank Levy Released — But Over $50K Was Still Taken (Michael B.) 🏦
The IRS approved hardship status and released the levy, but more than $50,000 was still sent to the IRS after the release failed to reach the bank in time.
Background
Michael, a retired North Texas taxpayer living on fixed income, came to Executive Tax Solution after an IRS bank levy froze more than $50,000 in personal funds. The sudden loss of access to those funds created an immediate hardship and threatened his ability to cover ordinary living expenses.
Our Approach
Allen Lenth, EA-MBA stepped in under Power of Attorney, documented Michael’s financial hardship, and worked directly with IRS Collections. The IRS approved Currently Not Collectible status and authorized release of the levy on Form 668-D. Executive Tax Solution then worked to get the approved release completed before the levy proceeds were remitted.
Outcome
The IRS approved the release, but repeated transmission and processing problems prevented the release from being completed before the holding period expired. More than $50,000 was ultimately sent to the IRS despite the approved release. Executive Tax Solution preserved the record of the failed release and continued pursuing the remedies available to recover the levy proceeds and protect Michael from further collection.
🚨 Facing a serious IRS problem? Get Bank Levy Help or Book Your IRS Strategy Call.
Watch the related video: https://www.youtube.com/shorts/Mgg3hLAnfIg
IRS “Substitute for Return” Nightmare Reversed — 6 Years Fixed (Shirley G.) 🧾
IRS Case Study Shirley G.
Background
Shirley and her husband ran a small horse farm while she held a high-paying job at Compaq. When her husband’s
heart failed and she became his full-time caregiver, six years of tax returns went unfiled. The IRS stepped in
with Substitute for Return (SFR) assessments based only on her gross income, ignoring large farm losses and
crushing medical expenses. The result was an inflated bill of more than $185,000 and a federal tax lien recorded
in Collin County, Texas.
Our Approach
We began by stepping between Shirley and the IRS as Power of Attorney, stopping the constant notices and the
immediate threat of enforced collection. Then we reconstructed six years of financial records, prepared and filed
accurate returns to replace each SFR, and documented every legitimate deduction and loss. Once the real liability
was established, we negotiated a manageable Installment Agreement that fit her retirement-stage budget and
protected her remaining assets.
Outcome
By replacing the IRS’s automated SFR assessments with true returns, more than 60% of the supposed debt was
eliminated, and the balance was spread over an affordable payment plan instead of aggressive collection. The lien
was brought under control, enforced action was avoided, and Shirley was able to retire and focus on her family
without living in fear of the IRS. Executive Tax Solution now handles her ongoing filings and remains her first
call for any IRS concern.
🚨 Dealing with Substitute for Return (SFR) assessments like Shirley?
Get SFR Help Now or
Book Your IRS Strategy Call.
$125K IRS Lien Withdrawn — Credit Restored (Maria) 💳
Maria’s credit collapsed after a $125K IRS lien. Within 90 days, the lien was withdrawn and her refinance closed.
Background
Maria was blindsided when the IRS filed a lien for $125,000. Overnight, her credit collapsed and a refinance
she had been counting on was denied. She felt trapped, with no way to move forward financially.
Our Approach
We began by pulling her IRS transcripts, correcting errors in her filings, and negotiating a streamlined
agreement that positioned her for relief. Once the paperwork was in order, we filed for lien withdrawal.
Outcome
Within approximately ninety days, the IRS removed the lien. Maria’s credit rebounded by more than eighty points,
and she was finally able to close on her refinance. Her case demonstrates how fast, precise action can reverse
what feels like an impossible situation.
📞 Facing a lien like Maria?
Get Help Here or
Book Your IRS Conference.
$218K IRS Debt Reduced to $56K — Lien Avoided (Joe’s HVAC) 🛠️
Joe’s HVAC business owed $218K. After filings and an Offer in Compromise, debt reduced to $56K. No lien filed.
Background
Joe owned a small HVAC business that had fallen behind on filings for four years. A divorce had blocked access
to critical records, and the IRS balance ballooned to $218,000. The threat of a lien loomed over his business,
putting contracts and future growth at risk.
Our Approach
We stepped in by filing all outstanding returns, restructuring his business into an S-Corp to protect future
income, and preparing a detailed Offer in Compromise. After review, the IRS accepted the offer, reducing Joe’s
liability to $56,000.
Outcome
Joe paid the balance, closed the case, and most importantly, no lien was ever filed. His story shows how
restructuring and negotiation can protect a business from collapse while resolving massive IRS debt.
⚡ Don’t wait until the IRS threatens your business.
Stop IRS Escalation or
Schedule Your Appointment.
More Case Studies Coming Soon 📚
Every IRS problem has a story, and every resolution has a process. As we continue to help clients withdraw liens,
reduce debts, and stop levies, we will add more case studies here. Each will follow the same clear format —
Background, Our Approach, and Outcome — so you can see exactly how resolution works in practice. These stories
are not marketing fluff; they are proof that IRS problems can be solved.
🚀 Ready to take action?
Get Help Now or
Set Your Appointment.
Discover more from Sachse, Murphy, Wylie Executive Tax Solution (469) 262-6525 - Allen Lenth IRS Tax Consultant
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