What is the best way to request reduction of payment to IRS?

[Zee]

You didn't provide how much IRS debt your client has. But, if it's unlikely they IRS will ever recover the entire amount, you might consider an Offer in Compromise. But, It isn't quick or easy.

[JohnH]

I'd say what does he have to lose by trying?

[Corduroy Frog]

Slim and None

The extreme difficult situation in which your client finds himself did obviously not exist the year he owed taxes and didn't pay them. If they had, he would not have owed this kind of tax liability.

If you want to lock in gear with IRS thinking, they will not open this door to reconsider the plight of someone who could have filed in a productive year, and chose not to. They are focusing their collections on a 2004 tax year, not 2008.

It sounds like your client is an honorable man, and does not deserve the heavy hand of government on top of other problems which have seemingly "ganged up" on him. But I believe the IRS will take the position as described above.

If anyone has any remedies which are workable, I hope they will post.

[JAinNC]

Client age 64 single (old friend - no charge client) in Alabama has been making payment of 125.00 per month to IRS since 2005 for 2004 tax year.

He recieves disability social security (since 2004) approx 1500 per month and less than 2000 per YEAR in other retirement. He has no assets except an old car. He is a severe diabetic with heart issues and pays the VA for his medical supplies and RX and takes 12+ medications. I have asked him to gather his utility bills, medical expenses, and other expenses. He drives about 20 miles a day to go to the senior citizen center in his town because they have a reduced cost nutrition program for lunch.

Back in 2005 when he did not pay his notice of tax assessment, IRS took 1/2 of his disability for 1 month and got his attention. He called them and says IRS told him if he did not pay at least 250 per month they would take 1/3 of his disability/SS. He finally got it down to 125. per month and has paid on time every month since then.

With the cost of gas, living, food, RX increasing he can't afford a new tire for his car.
Not that the reason matters, but an ex wife took him for everything he had.
He now uses the library computer because he can't affford the cost of internet or land line phone.

When I get facts together, I want to request lower payment or uncollectable status.

What do you think the chances are?

Thanks,
JA in NC