Ok­la­homa City man set­tles $2 mil­lion IRS debt for $50 with the help of Travis W. Watkins Tax Res­o­lu­tion & Ac­count­ing Firm

The Oklahoman (Sunday) - - METRO | STATE - BY ED­DIE ROACH BrandIn­sight Con­trib­u­tor

We re­cently in­ter­viewed Ok­la­homa City tax at­tor­ney Travis Watkins, of Travis W. Watkins Tax Res­o­lu­tion & Ac­count­ing Firm, about a huge vic­tory for an Ok­la­homa City man in tax trou­ble us­ing the IRS’ Of­fer in Com­pro­mise pro­gram.

Q: How does some­one run up $2 mil­lion in back taxes with the In­ter­nal Rev­enue Ser­vice any­way?

Watkins: This Ok­la­homa City tax­payer had filed some (but not all) his re­turns, but failed to re­port gam­bling in­come. He was self­em­ployed, and buried his head in the sand some­what. A very ag­gres­sive IRS rev­enue of­fi­cer showed up at his house and in­formed him (to his sur­prise) that he owed the IRS over $2 mil­lion. He was es­pe­cially fear­ful, as English was his sec­ond lan­guage.

Q: So, he must have had some HUGE gam­bling win­nings, right?

Watkins: Ac­tu­ally, no. That’s the sur­pris­ing thing. He lost it ALL at the casi­nos.

Q: Wait, if he lost it all, how did he have such a huge tax bill?

Watkins: The IRS will look at W-2G forms that all casi­nos file on tax­pay­ers for gam­bling win­nings above $600. If you fail to file a re­turn, or they au­dit you and you can’t prove losses up to that amount, they take the un-re­duced win­nings as tax­able in­come and stick you with a tax bill. That’s what hap­pened here. He lost ev­ery­thing, got no credit for his losses, and got a mas­sive tax bill he could never pay.

Q: How did you per­suade the IRS to ac­cept $50 for this tax bill?

Watkins: Some­times, an Ok­la­homa City tax lawyer can chal­lenge the big bill by fil­ing an orig­i­nal re­turn or show­ing the ac­tual losses up to the amount of win­nings in an au­dit. In this case, how­ever, the tax­payer had so lit­tle be­cause of his gam­bling is­sues, Travis W. Watkins Tax Res­o­lu­tion & Ac­count­ing Firm was able to show the IRS that he couldn’t ever pay this mas­sive tax or any­thing like it — us­ing the IRS’ Of­fer in Com­pro­mise Pro­gram — and the IRS ac­cepted $50 in full and fi­nal set­tle­ment of the en­tire tax debt. Un­der­stand­ably, he was in­cred­i­bly re­lieved, and grate­ful to have one of the IRS’ most ag­gres­sive rev­enue of­fi­cers off his back.

Q: Any ad­vice for Ok­la­homa City gam­blers in re­gard to IRS taxes?

Watkins: You re­ally need an Ok­la­homa City tax at­tor­ney when you owe mas­sive amounts and you have ag­gres­sive col­lec­tions on you. First and fore­most, though, I would say that if you gam­ble rou­tinely, you need an Ok­la­homa City tax res­o­lu­tion firm like Travis W. Watkins Tax Res­o­lu­tion & Ac­count­ing Firm to as­sist you with proof of your losses each year when you go to file your taxes. An ounce of pre­ven­tion is worth a pound of cure, they say.

Travis Watkins is an Ok­la­homa City At­tor­ney who lim­its his prac­tice to help­ing tax­pay­ers end IRS prob­lems. Watkins has earned the des­ig­na­tion Cer­ti­fied Tax Res­o­lu­tion Spe­cial­ist from the Amer­i­can So­ci­ety of Tax Prob­lem Solvers, a na­tional not-for-profit or­ga­ni­za­tion ded­i­cated to help­ing tax­pay­ers solve IRS prob­lems. As a spe­cial of­fer to read­ers, you can get a free copy of Watkins’ book, “The Ul­ti­mate Sur­vival Guide to IRS Prob­lems” by call­ing toll free 800721-7054 and leav­ing a mes­sage any­time. Watkins can also be reached im­me­di­ately at 405-400-8170.

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