Recent Legal Cases

2017 Offers in Compromise

  • Saved taxpayers $9.135 million in total taxes through offer in compromise programs, with clients paying on average 10 cents on the Dollar. The gross figure is another new record for the firm.

Penalty Abatement

  • Our client, a retired doctor, failed to file tax returns for many years due to suffering from dementia. Our client’s son contacted us to help. We were able to prepare all the past due tax returns for our client and requested the irs abate the late-filing penalties due to “reasonable cause” for not filing on time. As a result, our client received a full abatement of penalties and a refund of $17,965.

November 2017

  • Client came to us after IRS criminal investigation division (cid) contacted him and had opened up an inquiry into his last 6 years’ tax returns. We represented the client before IRS cid. And while not necessarily a common result, IRS cid agreed to end the criminal investigation without recommendation for prosecution.

October 2017

  • Client retained us after an irs audit concluded. The audit resulted in a proposed assessment of $86,679 in tax and $17,335 in penalty. We filed a tax court petition and represented clients throughout the tax court process. Ultimately we reached a tax court settlement that resulted in a tax assessment of only $2,769 and no penalty – a savings and reduction of over $101,000.

June 2017

  • Innocent Spouse Relief granted through Tax Court – Client filed return jointly but after husband passed away. Unknown to Client, her husband had received taxable funds from his pension. The IRS wanted to assess additional taxes against our Client for monies her deceased husband received. Through the Tax Court process the IRS granted full innocent spouse relief.
  • Tax Court Settlement – Client retained our firm after the IRS had issued its final audit report. The audit report assessed additional taxes of $70,736. In addition, the IRS assessed a Fraud Penalty of $53,052 – without interest a total of $123,788. We represented the taxpayer in appeal and in Tax Court and reached a settlement with the IRS which eliminated the fraud penalty in full and reduced the taxes due. The total tax and penalty owing as a result of the settlement is now only $29,853.

January 2017

  • Taxpayer invested $225,000 of her self-directed ira into a business that defrauded her. IRS originally assessed additional amount due of $118,831 in tax and penalty. We successfully argued to the irs that the investment was a theft loss, reducing the additional tax assessment to $26,444, saving the taxpayer over $87,000.

March 2016

  • The Franchise Tax Board audited our clients and claimed the Schedule C Self-Employment was a “hobby” and thus the losses claimed on the original returns were not allowable. The FTB sought over $748,000 in additional taxes.Our firm appealed the auditor’s findings and ultimately settled with the FTB, agreeing to pay a little over $97,000 to resolve all tax issues. As a result, our clients saved over $650,000 through the appeals process.

August 2015

January 2015

  • Our client had previously filed bankruptcy through another bankruptcy law firm. The purpose of the bankruptcy was to discharge over $350,000 in taxes. However, after the bankruptcy was completed the IRS continued to collect the taxes. Our firm successfully brought a complaint against the IRS inside the bankruptcy court and the court ruled that the taxes were dischargeable.

2014

  • In 2014 we saved our client’s over $11 million through our Offer in Compromise representation before the IRS, California Franchise Tax Board, and California Employment Development Department. In forgiveness of $11.098 million in taxes, penalties and interest our clients paid a total of only $817,497. This means our clients, on average, paid just 7.3 cents on the dollar.As an example, if a client owed $50,000 to the IRS, the average paid would have been only $3,650 to settle the balance in full.These figures are based strictly upon offers accepted. Not every offer submitted was accepted and the results of these offers is by no means a guarantee or promise of what, if anything, would be accepted for other cases.

November 2014

  • Our client was the CEO of a multi-million dollar company in the mid-2000’s that ultimately failed. The California Board of Equalization (“BOE”) sought to assess a Responsible Person Trust Fund Recovery Penalty against our client individually of over $5 million based upon an audit the BOE conducted of the business.We appealed the proposed assessment immediately and represented the client throughout the appeals process. Based upon our representation, Tax Counsel for the BOE determined that no assessment should be made against our client. This saved our client over $5 million in taxes, penalty and interest.

May 2014

  • Our clients, small business convenience store owners with 2 locations, initially handled an IRS audit on their own. The IRS’ final audit report reflected a total balance due of $129,822. Since the taxpayers did not agree with the IRS’ audit findings, they hired our firm to represent them in US Tax Court. Our representation resulted in a stipulated decision, without the need for trial, in which the IRS agreed to reduce the assessment from $129,822 to only $10,765 — a savings of over 90% from the final audit report.Successfully brought a complaint against the IRS within the US bankruptcy court in which the IRS agreed to discharge over $900,000 in taxes from tax year 1996. Our client initially filed bankruptcy on his own but after the bankruptcy concluded the IRS continued to seek to collect over $900,000 from our client. We argued that since our client reached a stipulated US Tax Court decision for tax year 1996, it qualified as a tax return-equivalent document and was therefore dischargeable in bankruptcy. The IRS ultimately agreed with our position. As a result the $900,000 liability for 1996 has been eliminated and the IRS is now prohibited from collecting.

January 2014

  • We successfully reached an $88,000 lawsuit settlement with Chase Bank for wrongful foreclosure on our clients’ home. The initial lawsuit was filed as part of our clients’ Chapter 13 bankruptcy case.Equally important, the Bankruptcy Judge overruled the bankruptcy trustee’s objection and ruled in our favor that the settlement funds were exempt from the bankruptcy estate and our clients’ creditors. The judge agreed with our argument that the full $88,000 was exempt from the bankruptcy estate based upon the “loss of future income exemption” per California Code of Civil Procedure Section 703.140(b)(11)(E).

2013 Year-End Offer in Compromise Program Results Summary

  • In 2013 we successfully eliminated over $6.1 million in tax debt for our clients through Offer in Compromise settlement negotiations with the Internal Revenue Service, Franchise Tax Board, Employment Development Department, and State Board of Equalization.On average, our clients who had offers accepted paid just 11% of their total tax liability. For example, if a client owed $50,000 and had an offer accepted they only paid on average $5,500 to settle. We have added the individual offers accepted to our “Tax Settlements” section on this website.The millions of dollars saved in taxes through our Offer in Compromise negotiation is in addition to the millions of dollars we saved for our clients in 2013 through our audit representation, court litigation, tax refund claims, audit reconsideration, and bankruptcy.

September 2013

  • Successfully reached settlement with IRS Audit Appeals to allow for late-election to group rental properties. The settlement allowed our Clients to claim their rental property losses as a non-passive activity, thereby allowing the losses to offset their ordinary wage income, saving the clients over $100,000 in proposed tax assessments.

August 2013

  • Successfully reversed an IRS Trust Fund Recovery Penalty assessment against the former President of a Bay Area construction company. The IRS had administratively assessed the Trust Fund Recovery Penalty against our client for payroll taxes owed by his former corporation and of which he was a 1/3 owner. We did not agree with the IRS’ assessment and filed a Claim for Refund with the United States District Court, Northern California. A month before trial the IRS agreed to reverse in full the Trust Fund assessment against our client and refund to him monies seized.

July 2013

  • Our firm successfully argued for innocent spouse relief on behalf of our client, saving her principal residence from IRS seizure and saving over $190,000 in personal income tax. The IRS sued our client in the United States District Court, Northern California in an effort to seize her principal residence to pay off a tax liability incurred jointly with an ex-spouse. The IRS then refused to consider an administrative claim of innocent spouse relief. However, after our firm made several legal maneuvers a judge ultimately agreed with our position that the IRS was required to either consider the innocent spouse relief claim or it would be considered denied with appeal rights. Upon taking the case to Tax Court, the IRS granted our request for innocent spouse relief in full.

June 2013

  • We successfully argued in bankruptcy court that the Internal Revenue Service (“IRS”) violated the bankruptcy code’s automatic stay provision by continuing to levy the taxpayer’s bank account despite the bankruptcy filing. The bankruptcy judge’s finding allows our firm to file an administrative claim against the IRS and seek damages for this violation against our client.

April 2013

  • Before the United States Tax Court, successfully represented taxpayers against the Internal RevenueService. The judge agreed that our clients were not responsible for the 20% accuracy-related penalty the IRSwished to assess for tax years 2007 and 2008. The judge also agreed with our position that our clients wereentitled to deduct additional unreimbursed employee expenses and medical expenses.

February 2013

  • Successfully argued before the United States Bankruptcy Court of Northern California (Oakland Division) that a creditor’s delay in filing a Motion to Determine Dischargeability barred creditor from ever raising claim.
  • Obtained an IRS Letter Ruling, LTR 200851043, which granted the taxpayer a waiver on the 60-day rollover requirement for a distribution from an IRA, thereby saving the taxpayer the taxes and penalties that resulted from the withdrawal.

January 2013

  • Successfully argued before the United States Bankruptcy Court of Northern California (Oakland Division) that a tax return filed even after the IRS has prepared a Substitute for Return and IRS assessment qualifies as an original return and is therefore eligible for discharge, saving the taxpayer over $200,000 of federal tax debt.

September 2012

  • Successfully reached a settlement of $80,000 against the IRS in the United States District Court of Northern California based upon a wrongful levy claim. Settlement was reached despite the fact that the IRS argued the statute of limitations to claim such a refund had expired prior to taxpayer hiring our firm. In this same case we provided the successful legal argument that the IRS violated its assessment procedures, leading to a jury invalidating over $1,000,000 in Trust Fund Recovery Penalty assessments.

Legal Disclaimer

The results of the legal cases above are representative of the work the Firm has performed over several years based upon the specific facts of each case. Results will vary based upon different facts. Depending upon the facts and circumstances of your case, results may and almost certainly will vary as every case is unique. This advertisement is not meant as a guarantee or prediction. The Law Offices of Robert L. Goldstein are not responsible for any damages that may arise from the misuse of information stated on this website. Thank you.