Cases & Deals

Cross-office team assists veteran in navigating IRS audit and negotiating payment plan

Clients PW

Jim Wang, a tax associate in Jones Day’s Washington D.C. office, volunteered under the supervision of Pittsburgh associate Jeff DeVore and Jones Day Pittsburgh’s Veterans Clinic to assist a veteran on audit who owed over $20,000 in back taxes for the 2005-2011 tax years, and who had also failed to pay his taxes under similar circumstances in the 1990s. Before the IRS would entertain a payment plan proposal, Jim assisted the veteran in filing all of his outstanding tax returns. Jim then negotiated with the IRS and eventually agreed to a monthly payment of $25. After agreeing to the plan, Jim continued to negotiate to abate the interest and penalties that had accrued, and were continuing to accrue, on the veteran’s tax liability. Because the veteran had previously failed to pay his taxes, he was deemed to be ineligible for the "reasonable cause" abatement that is typically within the IRS's discretion. However, Jim determined that the veteran is still eligible for a one-time abatement instituted pursuant to the IRS's administrative authority in 2001. Finally, Jim aided the veteran in understanding the mechanics of the federal lien that had been placed on his assets, including the potential to discharge the lien with respect to specific assets. Ross Poulsen, also a tax associate in the Washington D.C. office, assisted Jim throughout his negotiations with the IRS.

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