Monthly Success Story : September 2025
Success Story: How E.N. Settled a $64,950 IRS Debt for Just $9,862
When E.N. first came to me, she was overwhelmed — not just by the $64,950 she owed the IRS for tax years 2019–2021, but by the personal chaos surrounding her life. She was in the middle of a greedy, contentious divorce, fighting to keep her home so she could continue operating her daycare business. Her husband had intentionally inflated the home’s value, attempting to force a sale or increase the equity she would have to “buy back” from him. Despite everything working against her, E.N. refused to give up — and neither did I.
Step 1: Correcting the Home Equity Manipulation
The IRS initially viewed her home as a major asset — largely because her ex-husband had inflated the value to $1,400,000, creating an artificial $400,000 equity that would have disqualified her from an OIC.
Using a fair, professionally supported appraisal, repair estimates, and an explanation showing the property does not produce usable income, I successfully negotiated for the IRS to disregard the home equity entirely.
Result: Home equity counted toward OIC = $0
This single correction transformed the entire case.
Step 2: Securing a New Vehicle Before OIC Valuation
Because the IRS allows taxpayers to include monthly expense for vehicle before the OIC asset calculation, I guided E.N. through purchasing a brand-new car — legally and strategically.
This reduced her available assets even further, increased expenses, and ensured she had reliable transportation for her daycare business.
Step 3: Correcting IRS Income Assumptions
The IRS had incorrectly attributed income to E.N. that she never actually received.
Challenged the IRS’s assumptions
Provided documentation
Corrected the monthly expense calculations
Conducted tax planning to reflect her true economic reality
Although her tax returns showed income in the past, I demonstrated — with evidence — that her actual, current, personal income was a loss.
Result: IRS was only allowed to use her bank account balance as the available asset. No income was counted at all.
Step 4: Negotiating the Offer
After several months of strategic communication and negotiation, the IRS agreed to settle her entire $64,950 debt for:
$9,862 total — just 15 cents on the dollar. And the payment terms?
5 equal monthly payments of $1,972.40
Final Outcome:
IRS Debt Before: $64,950
IRS Debt After: $9,862
Total Savings: $55,088
Percentage Saved: 85%
E.N. kept her home.
She kept her business.
She got a new vehicle.
And she walked away with a fresh start — emotionally, financially, and professionally.
Why This Matters
This case is a powerful example of what happens when:
The taxpayer is honest and cooperative
The representative understands IRS rules at a deep level
Strategy, timing, and documentation are executed flawlessly
Someone fights for the taxpayer when they can’t fight alone
E.N. didn’t just settle a tax debt — she reclaimed her stability, her business, and her future.