At Carlsen Partners, we specialize in uncovering critical financial details that can make a profound difference in your tax outcomes. One of our most notable tax resolution cases involved a client facing a $380,000 federal income tax bill. By identifying an overlooked business debt and properly reporting it, we were able to eliminate the entire liability—and secure a refund.

Our client had personally loaned a large sum of money to their corporation in an effort to keep the business afloat. Unfortunately, the corporation was unable to repay the loan and eventually filed for bankruptcy.

When the client filed their tax return, this unpaid loan was not reported as a bad debt. As a result, the IRS assessed a significant tax liability, believing the client had no qualifying losses to offset income.

Our tax professionals conducted a full review of the client’s financial history and discovered that the unrecovered corporate loan qualified as a nonbusiness bad debt—a crucial deduction that had been missed.

We:

• Verified the bona fide nature of the loan
  
  
• Documented the corporation’s bankruptcy and insolvency
  
  
• Demonstrated the client’s reasonable expectation of repayment
  
  
• Amended the client’s tax returns to reflect the short-term capital loss
  
  

✅ $380,000 in federal income tax was completely resolved

✅ Client received a refund from the IRS

✅ No further tax liability or penalties

By properly classifying the unpaid corporate loan as a nonbusiness bad debt deduction, we reversed the entire tax burden and achieved a successful outcome for our client.

If you’re facing significant tax debt, your case may not be as final as it seems. Hidden opportunities—like bad debt deductions, carryforward losses, or misclassified income—could substantially reduce your tax bill.

Our team can help you:

• Evaluate your financial and tax situation
  
  
• Identify overlooked deductions or losses
  
  
• Prepare amended returns
  
  
• Negotiate with the IRS for resolution
  
  

Let our team uncover the full picture.

Schedule a Free Consultation today.

CARLSEN PARTNERS

Tax Resolution | Tax Strategy | IRS Representation