$127,000 IRS Back-Tax Resolution for South Florida Contractor

The challenge

A 1099 contractor had six unfiled tax years, an active IRS wage levy on his single payer, and $127,000 in assessed liabilities. He was three weeks from losing the contract that fed his family.

Our approach

• Filed all six missing federal returns within 10 business days using reconstructed income records.
• Submitted Form 433-F with full financial disclosure and an economic hardship argument.
• Negotiated immediate release of the wage levy under IRC 6343(a)(1)(D).
• Recalculated the true liability after corrected returns — actual balance was $54,200, not $127,000.
• Secured a 72-month Streamlined Installment Agreement at a payment the client could sustain.

The outcome

Wage levy released in 9 business days. Assessed balance reduced by 57%. Client kept his contract, stayed current with quarterly estimates, and is now on track to pay off the IRS balance ahead of schedule.