Due to several months of unprofitable operations, this business accumulated $500,000 of unpaid payroll taxes owed to the IR. This resulted in a tax lien filed against the company and it’s owners. We settled this entire debt for $22,000.
This company had been experiencing losses from reduced sales. These losses prompted their bank to increase the interest rate and reduced their line of credit availability. The company also had unpaid payroll tax problems and unsecured creditor pressures.