Sanjay was a seasoned hotelier with nearly three decades of experience in operating hotels in the United States with his family. Having worked his way up from a front desk clerk to General Manager and later owner-operator of small motels, Sanjay went on to own five hotels connected to the Hilton franchise.
Hotel
After a successful tenure, Sanjay was ready to sell his holdings to a more prominent player in the local market and return to India. But within 18 months of getting back to India, Sanjay received the startling news that he owed over $2.5M in taxes, fees, and late charges to the IRS from selling his hotels.
On seeing Sanjay struggle to tackle this tax problem he was referred to Weston Tax Associates by one of our current clients in the real estate space. As experts in tax relief solutions, we immediately understood that it was crucial that Sanjay got an effective representation before the IRS. After contacting the IRS and getting the appropriate paperwork in our hands, we immediately began putting together a plan to assist Sanjay in this matter.
With a collective experience of 250+ years, our qualified team has spent the better part of our lives crunching numbers and lending intelligent strategies to businesses and individuals. With prior experience in a similar case, one of our partners quickly arrived at the right strategy for this problem, which hinged on having the proper knowledge to ask the IRS the right questions while requesting the correct paperwork (using the corresponding forms and knowing their pain points) and where to find the specific solutions in the Tax Code.
The solution here was buried deep in the tax code which entailed eliminating a massive portion of the taxable gains when selling a specific type of property that qualifies for special tax treatments. The previous accountant had missed vital aspects of reporting this type of sale to the IRS.
The second aspect we challenged was the amount of time the IRS had spent on the case. Once we reviewed the requested case file, it was evident that the agent on the case could not have come to this conclusion in the timeframe listed in the case. Upon our challenge, the IRS appeals committee agreed with our stance and immediately dismissed all fees and late charges. In addition, on receiving our revised documentation regarding the sale of Sanjay’s hotels was also accepted as a special treatment sale, eliminating the entire $2.5M tax liability.
Although this was a drawn-out process that lasted over six months, Sanjay never had to return to the United States to appear for any meetings or depositions. Weston Tax Associates still represents Sanjay in all his current entrepreneurial endeavors and is one of our best ambassadors worldwide.
Fill out the form to download
Sign-up & we’ll let you know as soon as we have something to show off. (Don’t worry, we don’t spam).
© 2023 WESTON TAX ASSOCIATES | All Rights Reserved
