What is the name of your state (only U.S. law)? New Mexico
I've been negotiating an installment agreement with the IRS since last November. Today, I received their decision and it wasn't good for me. I owe $72,000 in back taxes and they want a monthly installment of $1,163 for 60 months. There figures are based on my gross income, which is about $3,400 a month (I work for state government in New Mexico) and not net. But the bottom line is, I only clear about $2,500. After all the basic expenses, I calculated that I would be left with about $300 a month if I entered their installment agreement. Now this doesn't include food, gas, emergency money, etc. The problem, as I see it, is how they base their resolution, which is on the gross salary. But after insurances, taxes, retirement, I only clear $2,400. What can I do in this situation? Am I allowed to negotiate beyond 60 months? What other options are there. Thanks in advance for any help.
I've been negotiating an installment agreement with the IRS since last November. Today, I received their decision and it wasn't good for me. I owe $72,000 in back taxes and they want a monthly installment of $1,163 for 60 months. There figures are based on my gross income, which is about $3,400 a month (I work for state government in New Mexico) and not net. But the bottom line is, I only clear about $2,500. After all the basic expenses, I calculated that I would be left with about $300 a month if I entered their installment agreement. Now this doesn't include food, gas, emergency money, etc. The problem, as I see it, is how they base their resolution, which is on the gross salary. But after insurances, taxes, retirement, I only clear $2,400. What can I do in this situation? Am I allowed to negotiate beyond 60 months? What other options are there. Thanks in advance for any help.