An Entrepreneur’s Freedom To Live His Life

Is there a better endorsement for a Tax Resolution Expert than the following testimonial from a grateful client? When I heard this description in person and I witnessed the emotion so clearly expressed, I knew without question that Peter Stephan was the real deal:

“Peter Stephan and the Tax Resolution Institute achieved more for less in a shorter period of time than I thought possible. Peter was always reachable and responsive while never being condescending, judgmental or aloof. When everyone else who promised to help me failed to come through, Peter gave me the freedom to live my life without the weight of an albatross over my back.”

This is a direct quotation from an interview with Dennis Kane (not his real name — we respect the privacy of our clients), a prototypical example of an American entrepreneur in the best sense of the word. Well, in the best sense of the word in terms of entrepreneurial enterprises, but not the best sense when it comes to paying his taxes. Being ex-army and a serial entrepreneur, Dennis is a no-nonsense straight shooter with a passion for the American dream and sports. In his mid-seventies, Dennis was born in an immigrant family, and he worked his way up the ladder of success from the bottom rung.

After over twenty years in the army, Dennis made his first fortune trading currencies, specializing in rare gold coins on the international market. When the market went south, Dennis shifted his focus to the heavy-duty import/export business. Although consistently profitable, Dennis had bigger dreams. When a cutting edge opportunity presented itself to sell radio frequencies, Dennis jumped on the entrepreneurial bandwagon without a second thought.

Buying Radio Frequency (RF) Licenses for California from the FCC, Dennis would resell them at auction to radio stations that needed the bandwidth. A Radio Frequency (RF) License is the purchased right to transmit RF waves over a given BTA for typically periods of 10 years. The government (FCC) provides licenses to ensure maximum competition in a free market and spectral efficiency, which is another way of stating efficient use of the RF spectrum. Since the big players were worried that the FCC would run out of bandwidth to sell, they paid a fortune for the RF Licenses, and Dennis hit the jackpot.

Naturally, what Dennis should have done next is pay his income taxes on his profits, giving the IRS and the California Franchise Tax Board their due. Instead, Dennis spent the money on his family and more investments. In addition, he bought an expensive mansion and paid in cash, rather than taking out a mortgage. Believing he could fly under the radar by spending the money he made as opposed to reporting it and paying his taxes, Dennis set himself up for a downfall that almost destroyed his financial future.

By the time Dennis came to see Peter Stephan at the Tax Resolution Institute, he already was in terrible shape. Once they learned he had paid for the mansion in cash, the IRS seized his home and went after the rest of his assets. Dennis owed over 4 million dollars in income taxes to the IRS and over 1 million dollars in state taxes to the California Franchise Tax Board. In other words, when Dennis first met Peter Stephan, he literally was caught between a rock and a hard place.

When asked to explain how such an extreme tax crisis happened to him, Dennis claimed he was a victim of his own stupidity and ignorance. Like the straight talker that he is, Dennis placed the blame squarely on his own shoulders. Before seeing Peter Stephan, however, he had tried to obtain help from other businessmen, accountants, lawyers and so-called friends. At first, they all claimed to have the answer because they wanted Dennis to write them a big check. With a sigh, Dennis shook his head and grumbled, “None of those folks ever came through for me. They promised everything and did absolutely nothing. As you can guess, I was pretty suspicious when I came to see Peter.”

In contrast to the previous bevy of charlatans and con men, Peter Stephan found a way to provide unbelievable tax relief for Dennis Kane. Yes, unbelievable is a big word, but you will agree that it is the right word after you read about the incredible tax resolution skills that Peter Stephan applied to this challenging tax crisis. Since years had passed since the original taxes were due, Peter realized that the collection statute on Dennis’s tax bill was about to expire. As a result, the IRS was being incredibly aggressive with their collection techniques. Putting together a well-designed Offer in Compromise, Peter actually was able to settle the IRS tax bill of over 4 million dollars for a $5,000 dollar one-time payment. Beyond belief, but absolutely true!

Since the state collection statute is eligible for renewal by the Franchise Tax Board, Peter Stephan knew that California would be tougher than the IRS when it came to settling the tax bill. Putting together a masterful Offer in Compromise for the prickly state Revenue Officers, Peter Stephan was able to settle the FTB tax bill of over 1 million dollars for a $15,000 dollar one-time payment. As you can see, “unbelievable” is a perfectly appropriate description of this incredible tax resolution case. When he first came to see Peter Stephan, Dennis Kane owed over 5 million dollars combined to the IRS and the California Franchise Tax Board, and his home already had been seized. The IRS was getting ready to seize the rest of his assets and garnish any future wages. After Peter Stephan worked his tax resolution magic (okay, not magic, but true experience and learned expertise), Dennis Kane paid a total of $20,000 and walked away with his financial freedom and his future intact.

As Dennis carefully explained, he could not discharge the taxes through a bankruptcy and continue with his entrepreneurial career. If he had gone bankrupt, Dennis Kane’s future as a businessman would have been bankrupt as well. After all, nobody is going to do a multi-million dollar business with somebody with a bankruptcy on his record. At the end of 2009, Dennis Kane closed a deal on a major international infrastructure venture that will earn him millions of dollars and provide a multitude of jobs. In fact, the deal is so significant; the country involved cannot even be mentioned because it would threaten his privacy.

As Dennis Kane expressed, “Peter Stephan achieved more for less in a shorter period of time than I thought possible.” For a tough straight-shooting ex-army guy, Dennis becomes a bit emotional when he discusses what Peter Stephan and the Tax Resolution Institute accomplished for him. A proud man, he is not shy when expressing his gratitude for and satisfaction with the Tax Resolution Institute. Dennis Kane understands that without the help and the expertise of Peter Stephan, his future would have remained frozen in place. If you feel overwhelmed by your tax burden and need a shot at a second chance, please contact us today.