Tax problems feel personal, but you’re not alone
If you’re facing a massive tax bill or threats from the IRS, you’re not alone. Thousands of people each year find themselves buried in back taxes, unsure where to turn, and terrified of what comes next. Whether it’s wage garnishments, bank levies, or simply the fear of losing everything, the stress can feel overwhelming.
At Wiggam Law, we’ve seen it all and helped clients through it. Some owed hundreds of thousands of dollars. The IRS hit others with penalties for mistakes they didn’t even make. In every case, we applied a strategy tailored to that client’s unique situation to minimize their debt and protect what matters most.
In this post, you’ll read how we helped one client escape over $144,000 in IRS and Georgia tax debt after a messy divorce, and how another avoided a wrongful $684,000 assessment caused by identity theft. If you’re feeling hopeless, these stories will show you that real solutions are possible.
$144K IRS & State Tax Debt Resolved After Marital Fallout
Our client came to us distressed, facing more than $279,000 in combined tax liabilities to the IRS and the State of Georgia. The cause? Her former spouse used the money they set aside for taxes without her consent, leaving her solely responsible for the entire debt after the marriage ended. With collections looming and penalties growing, she was out of time and options.
IRS Strategy: We first evaluated the statute of limitations on collections to tackle the IRS portion of the debt (roughly $195,000). By identifying balances near the 10-year Collection Statute Expiration Date (CSED), we allowed over $84,000 in IRS liability to age out. For the remaining balance, we secured an affordable installment agreement to keep the client in compliance while protecting her assets.
State Strategy: She owed an additional $84,000 to the Georgia Department of Revenue. We submitted a carefully prepared Offer in Compromise, presenting a clear case for financial hardship and lack of collectability. After thorough negotiations, the state accepted the offer for just $24,000, saving her $60,000 on that portion alone.
Resolution Timeline: Over several months, we executed this multi-step resolution plan, easing her burden piece by piece.
Final Outcome: We eliminated more than $144,000 in tax debt for our client. She walked away from six figures of stress and into financial peace.
$684K IRS Collection Action Avoided After 1099-K Identity Error
Not every tax case involves years of filings and settlements. Sometimes, the IRS simply gets it wrong, which was precisely what happened here.
The Situation: Our client received a CP2000 notice claiming he owed nearly $685,000 in back taxes for the 2021 tax year. The cause? An incorrect 1099-K filed by a former employer reporting over $1.4 million in merchant sales tied to a bank account he didn’t control. The income was real, but it didn’t belong to him. To make matters worse, a nefarious actor stole and used his identity to open the account, further complicating the issue. Our client, an independent contractor, tried resolving the issue directly with the business tied to the account, but couldn’t get a corrected 1099.
Client Challenge: Panicked by the size of the proposed liability and out of options, he turned to us for help after his attempts to resolve the issue directly went nowhere.
Our Strategy: We responded to the CP2000 notice with a detailed explanation of our client’s situation, supporting documentation, and a formal identity theft affidavit. We clearly laid out how the erroneous 1099-K stemmed from an account he neither owned nor operated.
IRS Response: The IRS ultimately agreed with our analysis and dropped the proposed assessment entirely.
Final Result: Over $684,000 in tax liability erased with no collections pursued.
Takeaway: Tax resolution isn’t one-size-fits-all
These results aren’t the outcome of guesswork. They reflect smart strategy and years of tax law experience applied to the facts of each case. One client needed a multi-pronged approach that spanned both federal and state liabilities. Another simply needed someone to untangle a paperwork disaster and clear their name.
Tax problems are rarely just about numbers. They’re about context, timing, and applying the right tool to the right situation. That might mean:
- Using the IRS’s own timelines (like CSEDs) to your advantage
- Negotiating an Offer in Compromise for financial hardship
- Correcting misfiled documentation
- Filing identity theft affidavits when needed
- Creating affordable payment plans that prevent aggressive collection actions
The difference isn’t just legal knowledge. It’s strategy, timing, and knowing how to work with the IRS to get real results.
Want Results Like These? Let’s Talk
Even if things feel out of control right now, you still have options. These outcomes aren’t rare. They’re the result of knowing how to navigate the system and putting the right professionals in your corner. Whether you’ve been hit with a massive IRS notice, buried in penalties, or just don’t know where to begin, we’re here to help you take the first step.
We’ve helped hundreds of clients save thousands of dollars. Let’s find out what we can do for you.
