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

[JAinNC]

Good advice

Thanks Travis and all --- much appreciated.

[travis bickle]

there is another route

that may be possible in this particular situation.

have your client/friend complete the POA for you and have them download and fill out IRS Form 911 (yes, 9-1-1).

This form is used to get the office of the IRS Ombudsman involved "when the wolves are howling at the door".

Your client can list all the "numeric" data required on Form 433F, but can put it in "plain English" to explain the depth of trouble he is currently facing.

If you submit this form, I would also add a statement stating that Form 433F has already been filed on this issue.

PS -- looks like they changed the name of the office from "Taxpayer Ombudsman" to "Taxpayer Advocate Service" in this latest revision.

[taxea]

best way to request reduction

My response referred to requesting a reduction in the I/A amount...not setting up an I/A. That apparently has already been done.
taxea

[ED SMITH]

...this process takes time .....
Call the number on his latest letter and explain what you are in the process of doing. They will make a note on his account. taxea

In most cases this is not true. I have gotten I/A's within a half hour over the phone, sometimes two on the same call and I do this several times a week. The same applies to CNC's, except they can take up to 5 days to review.

What is the point of wasting a phone call if he is comlying with the current payment arrangement. This could be the only sticking point in a CNC. Why was he able to make consistent $125 payments? The answer - could be - his cost of medication went up.

[taxea]

Request reduction of payment to IRS

My experience is you can fill out a financial budget of expenses and income. The IRS has strict rules on what can be included in expenses. Include it with your request to lower his installment payments.
Once the IRS has reviewed the financial information they will tell he what they believe he can afford. This would mean he would have to cut all unnecessities from his expenses.If he is unable to pay anything by their standards they will put him on "unable to pay" status but interest will continue to accrue.
this process takes time and he will have to continue to make the installment payments while it is in progress.
Call the number on his latest letter and explain what you are in the process of doing. They will make a note on his account. taxea

[Corduroy Frog]

Just my take

I couldn't disagree more with Corduroy Frog's post.

I am fast losing credibility on the board. But I am responding based on my experience with Form 433, some 3 of them in last few years. Admittedly a couple of them were borderline, but the position taken by IRS was consistent with what I have related. Even though the form appeared to be quantitative as to what could be settled upon.

For my North Carolina neighbor, I am nonetheless quite delighted that many others have had good experience in securing relief - including some with IRS experience. Ed Smith laid out a very good road map, especially if your client can supply documentation.

Ed, I'm currently out of a job and was planning on applying for one of those "pennies on the dollar" firms, like Roni Deutsch or J K Harris, and listing YOU as a job reference. Guess I can forget about that...right?

[Zee]

The only problem is most of those ads are lies.

It doesn't matter if they're exaggerations, or not. His pride needs to be set aside.

[joanmcq]

Show him some of the ads from Offer in Compromise companies touting their success. It may change his mind if he compares himself to others.

The only problem is most of those ads are lies.

[myerstaxes]

I Agree

go for currently not collectible...I did many in the early years of my IRS career...He sounds like a good candidate for it...

[JAinNC]

Did that

That is why I am now going to get a POA and his info.
Pride is powerful.

[Zee]

He would go without his insulin before he would not pay what IRS required.

JA in NC

Show him some of the ads from Offer in Compromise companies touting their success. It may change his mind if he compares himself to others.

[JAinNC]

Thanks

Dave,
I hope so.

[JAinNC]

Thanks Guys

I do not have the amount owed - He will locate the last yearly statement.
It seems I will not be able to avoid completing the 433F. That was my 1st thought but I hoped I might get by without that. Guess not.

He would go without his insulin before he would not pay what IRS required. This is a real hardship case. I wish I could have gotten to this 2004 MFJ return before the 3 year times was up to amend or question the 2004 1040.


Ed, thank you so much for all the advise and help.
Thanks John, I agree. We NC people have to look after our Alabama clients.

Thanks,
JA in NC

[DaveO]

I agree with ED

I can't see why the payment couldn't be reduced or even have him moved to currently not collectible status.

[ED SMITH]

I couldn't disagree more with Corduroy Frog's post. The fact that he has limited income, is disabled and is 64 make his chances excellent for a CNC.

First, get a POA from him and don't let him talk to the IRS. They should only be talking to his representative - you.

Next, download form 433F and help him fill it out. Also check the Irs collection standards. You will see that a single person is allowed $507 in food, clothing, etc. Use the full amounts for Section G, Part 1.

Since he doesn't work. the gas- car insurance might not be allowed, but he may not need it because his food -clothing allowance may be greater than what he actually spends.

Rent and utilities shouldn't be a problem.

Only $54 is allowed for prescription drugs, so this and his medical expenses will have to be substantiated. (part 4). Also any thing ins Part 5. if after subtracting his expenses from his income he has anything left over, that would be the basis of n Installment Agreement.

You will also need three months of bank statements which should also show his SS deposits as proof of income.

Then call ACS 1-800-829-7650. You can give them all the data over the phone and may not have to fax them anything. Then it goes to a supervisor for review and if you don't hear back in 5 days you know that the CNC is approved. I would check back about 2 weeks just to be sure. You can call PPL for this.