IRS Collections

The IRS collections division has verbally denied my request to appeal a decision of theirs that establishes an installment agreement at double the amount of my earlier agreement that I requested reconsideration. They will not provide me written notice.

Their reason for denial was that I defaulted on two previous installment agreements. The defaults were the result information I followed that was provided by IRS agents. The IRS direction and information is documented in my records. The IRS provided bum information, which I followed. They say my only option is an Offer in Compromise, but I doubt I will qualify due to my monthly income.

The IRS says I must pay an amount double of my earlier installment agreement and if not, they will levy on my paycheck.

The IRS action is punitive and capricious and they are killing me.

How can I pursue a reconsideration of their arbitrary installment agreement amount when they deny me the opportunity to appeal their decision that doubles the agreement amount?



Many thanks,
Backnine29

Try contacting the taxpayer's advocate and see if there is anything that they can do to help you.

IRS Collection

Thanks. I've been working with the Taxpayer Advocate for more than a month. Not too successful working with the Collections Division.

Collections

You can file Form 9423 to request appeal's consideration of your installment agreement request. You may want to consider professional assistance.

IRS Collection

Thanks, I'll look into it. I don't think the collections department is denying my existing installment agreement. Rather, they are saying that I have the ability to pay double what I currently pay under it. THAT decision is what I want to appeal. Not sure yet if From 9423 applies to this situation. CAn't find anything yet that does.

backnine29 said:

Thanks, I'll look into it. I don't think the collections department is denying my existing installment agreement. Rather, they are saying that I have the ability to pay double what I currently pay under it. THAT decision is what I want to appeal. Not sure yet if From 9423 applies to this situation. CAn't find anything yet that does.

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How much do you owe in total? What is your annual income? How much is the IRS saying that you have to pay monthly?

Owe approximately $56,000, which about one half of that total is penalties and interest. Annual income is $104,000. Current installment agreement is for $1250/month; IRS now wants $2372/month or will levy. With the $2372 payment, after paying monthly bills, I would be left with $15.00. Also considering penalty abatement. Then suicide.

Thanks.

backnine29 said:

Thanks, I'll look into it. I don't think the collections department is denying my existing installment agreement. Rather, they are saying that I have the ability to pay double what I currently pay under it. THAT decision is what I want to appeal. Not sure yet if From 9423 applies to this situation. CAn't find anything yet that does.

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If they are denying your offer to pay $1,250 a month, they are denying your existing installmnt agreement. You could hire someone to help for less than half of what the IRS is asking per month over and above your current agreement. But since you think you have it under control....

backnine29 said:

Owe approximately $56,000, which about one half of that total is penalties and interest. Annual income is $104,000. Current installment agreement is for $1250/month; IRS now wants $2372/month or will levy. With the $2372 payment, after paying monthly bills, I would be left with $15.00. Also considering penalty abatement. Then suicide.

Thanks.

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They are asking for over 27% of your monthly income. That is definitely way high. It seems to me that you have three choices. You either seriously downsize until the debt is paid off, or you take out a longer term loan somewhere else to pay off the IRS, or you hire a professional to assist you.

I think that the IRS feels that you have the ability/credit to come up with the cash and is trying to pressure you into doing so.

Yes and that's 52% of my take-home pay per month. The 10-year collection period on the bulk of amount due runs in early October 2009. So I understand why the IRS wants as much as possible - so they can avoid writing off the uncollected balance.

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backnine29 said:

Yes and that's 52% of my take-home pay per month. The 10-year collection period on the bulk of amount due runs in early October 2009. So I understand why the IRS wants as much as possible - so they can avoid writing off the uncollected balance.

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Your only other option would be to agree to extend the statute of limitations and see if that would get them to ease up on you.

However, if I were in your shoes, I would take out a long term loan from somewhere and get it paid off.

IRS Collection

Thanks. Collections Unit not in the negotiating mode. And don't have the means to acquire a loan.

backnine29 said:

Thanks. Collections Unit not in the negotiating mode. And don't have the means to acquire a loan.

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Then your only real choices are to either downsize or hire yourself a tax attorney.