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If you work full time as a W-2 employee and file your taxes by April 15 every year as you’re supposed to, you probably never expect any trouble from the IRS.
You pay your tax bill on time. Or maybe you even get a refund. Statistics say nearly 70 % of Americans did in 2019.
Just like Guy McKeehan.
Guy had always gotten a modest tax refund. As a single male, he declared 0 dependents on his W-4 so the IRS would take out the maximum withholding taxes. “When my friends asked why I don’t declare ‘1’ to take home more of my paycheck, I told them I didn’t want to owe at the end of the year,” he says.
Guy filed his taxes on time. He paid into his 401K for retirement and worked hard during the night shift at a mozzarella factory in Roswell, New Mexico, often working 12-hour shifts and not arriving home until 6 in the morning.
In short, Guy is a hard-working, responsible, compassionate man.
And that compassion and sense of responsibility, along with a string of bad luck, is exactly what got him into trouble a few years ago.
It started when he decided to cash out his 401K and profit-sharing to help his brother who was facing hard times in Arizona. In addition to loaning his brother the money, he prepared to uproot his life and move to Arizona to help his brother.
Borrowing against his 401K seemed like a more responsible choice than using credit cards to help out. One of the options when you borrow against from your 401K, is to pay the money back into your retirement account, with interest. You’re basically borrowing your own money.
But 401K loans have certain tax ramifications people may not know about…. And which Guy didn’t realize at the time.
Combined with tax law changes that year, it left Guy in a predicament he never expected.
But before he could even make it Arizona, everything changed for Guy—and not in the positive way he had expected. A drunk driver swerved into him at an intersection. As the airbags on Guy’s car inflated, a nearby police car came to the rescue quickly.
Fortunately, Guy escaped with only minor injuries, but his car wasn’t as lucky. It was totaled. And the vehicle that hit him was uninsured. After a few weeks without a car while insurance paperwork got processed, Guy used the insurance payout from his own policy’s uninsured motorist coverage to buy a used car.
The older car only lasted six months before the valves started sticking and the car was rendered undriveable.
Then Winter Storm Goliath devastated New Mexico. The deadliest storm of the year brought 80 mph winds and created hardship across the state.
It was as if things couldn’t get any worse. “It was just a bad string of events on my end that led to me falling deeper in a hole,” Guy said.
Shortly after the storm, Guy began to see the sun peeking through the cloudy skies of his own financial situation.
He connected with a car salesman who gave him an excellent deal on a new, reliable vehicle. “Nobody likes to have any kind of car payment, but at least I knew I could trust the car not to break down,” he says. “It was a necessity to get to work.”
And then Guy found out how much money he owed in taxes due to a filing error. He was in debt to the IRS for more than $8,597!
“I wasn’t making enough to pay that kind of money back right away,” he says. “After the car accident and the storm, I wasn’t even financially stable enough to set up a payment plan.”
Hoping to find better luck in Arizona, Guy finally left to join his brother, living with him to keep expenses down. Guy worked a series of jobs through a temporary staffing company, earning enough to start getting back on his feet.
“That’s when I received the first wage garnishment notice from the IRS.”
Guy spoke to his brother’s tax accountant, who recommended he call Stop IRS Debt immediately. It only took one phone call with the company’s tax experts to put Guy’s mind at ease.
Stop IRS Debt is one of the most trusted names in tax debt relief. The company has helped resolve over $1 billion in tax debt.
“They told me step by step what the process was, and what information I needed to provide to them,” Guy says. “They put my mind at ease.”
They told me step by step what the process was, and what information I needed to provide to them. They put my mind at ease.
Because Guy was not making enough money to cover his debt, Stop IRS Debt placed him in Currently Not Collectible (CNC) status with the IRS. The IRS had to halt collections, and stop sending any more tax lien, bank levy, and wage garnishment notices. This also allowed Guy to qualify for loans that he otherwise may have been denied.
Whenever Guy would receive a collection notice, he would reach out to Stop IRS Debt and they would reassure him that it was an automated system and the notices would stop soon. Before the year was over, they did.
Filing for CNC status is a complicated process, requiring expert help. The forms require showing all income and expenses in order to prove that paying off the tax debt will cause undue financial hardship. The tax experts at Stop IRS Debt filled out all the forms and did all the calculations for Guy. All he had to do was respond to their emails.
“Stop IRS Debt handled it all for me,” Guy says. “I was able to put my nose to the grindstone, put my head into work.”
Because Guy worked nights, Stop IRS Debt made it easy for him to keep track of his case by sending him email updates. When he found time to call them to check on the status of his case, they always provided up-to-date information and timelines.
By placing Guy in CNC status, Stop IRS Debt was able to resolve his $8,597 debt almost completely. By halting IRS collections and providing proof that Guy simply cannot pay his outstanding debt, Stop IRS Debt gave Guy a fresh financial start. Guy will end up paying pennies on the dollar compared to his original balance, and the money comes directly out of his Federal tax refund. He can even keep any tax refunds he may get back from the State.
Because of Stop IRS Debt, Guy regained confidence in his financial situation and no longer loses sleep about the IRS coming after his hard-earned wages or personal property.
“I would definitely recommend Stop IRS Debt to anyone else in the same predicament,” he says.
Stop IRS Debt is the #1 rated tax resolution company on Solvable for a reason – they know exactly what to do to make your IRS problems go away. With over 175 reviews on Solvable, we can confidently say that Stop IRS Debt will work tirelessly to find the best solution to your unique situation, whether that’s negotiating an offer-in-compromise on your behalf, or placing you in CNC status, like Guy.
Here at Solvable, we want to empower you to take action to solve your tax debt – just like Guy did. Take advantage of Stop IRS Debt’s free, no obligation consultation and embrace a fresh start for your financial future.