IRS Intent to Levy

What is the name of your state? California and Idaho

The IRS has issued me a Notice of Intent to Levy on 1998 unpaid taxes during time I lived in California in the amount of $58,138, of which $25,975 is accrued interest and penalties.

In 1999, I filed for an Offer in Compromise through an attorney (former). During that process my (former) attorney continued the OIC hearing without our knowledge and subsequently did not show for the reset hearing date (which we were unaware of). As a result, the case was dropped by the hearing officer when my attorney did not show. A Notice of Intent to Levy was eventually issued, as I re-grouped to explore options. The IRS has set a deadline of November 15 for me to submit payment or it says a levy will issue.

Based on my experience with my former attorney, I have not hired another. After reviewing IRS rules, regulations and guidelines, it does not appear that an OIC will resolve my tax problem due to my income level and level of obligations. As a result, I am considering filing a Request for Penalty Abatement, including a request to make installment payment arrangements on the remaining balance and interest, if approved. I understand the IRS does not waive interest, but is lenient about accrued penalties -- upon a showing of good cause. I believe I have such: I was fired from a very specialized job in 1998 (only 58 such positions statewide in California). Due to my specialized field of work, it took me 7 months to place another job in my field. I now live in Idaho, where there are only 7 such positons. My question is this: Is a Request for Penalty Abatement a reasonable approach to resolving my Federal tax problem? My research indicates such a request can be done in letter form. I find no applicable tax form.

Any thoughts would be appreciated.

Many thanks,
BackNine29
Boise, Idaho

[abezon]

If the IRS does not abate the penalties, you might consider a Chapter 13 bankruptcy debt restructuring. You pay all debts in 5 years or less. The advantage of ch. 13 is that the BK trustee decides how much interest/penalties the IRS gets and the IRS has to say "thank you, your honor." Whether you'd qualify depends on your income & other debts.