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Is there any way to reduce IRS debt after an installment agreement is entered into and with liens filed?
Question : Is there any way to reduce IRS debt after an installment agreement is entered into and with liens filed?
I tried offer of compromise route and was turned down on a technical point; then filed with US Tax Ct.; had to withdraw case because IRS levied my wages on one year that was not in court filing; now in installment agreement, with nearly half my take home salary being taken monthly from my checking account. IRS says they cannot reduce penalty until taxes are paid, which makes no sense to me. I wish an open, honest answer, not someone selling ripoff IRS assistance. I came clean with IRS now they are driving me into poverty.
reduce my debt
Best answer:
Answer by Scarlett_156
You must find an attorney who specializes in tax debt. Shop around until you find one, and engage his or her services before it’s too late! Yes, you can do something but it’s nearly impossible to do it by yourself. The attorney will cost money but he SHOULD be able to help you if you take action soon enough.
Good luck!
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#2 written by ILoveKeyLimePie 1 year ago
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#3 written by David M 1 year ago
find out what the exact amount of tax is owed minus the penalties what there telling you is that all money paid right now is going to the taxes owed not the penalties once they are paid off you can renegotiate the penalty amount. sorry I cant help you any further. but I would also speak with a lawyer a free consult couldn’t hurt. Good Luck
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The short answer is yes, but based on the details of your question, you may not be able to do it yourself, and it sounds like you may really want to just renegotiate the installment agreement.
What I would recommed at this point is to engage a tax attorney. The way I would suggest looking for one is to ask people you personally know who their CPA or Enrolled Agent is. Get a list of good CPAs and EAs, then call their offices and ask for a referral to a tax attorney. You would then have a small list of skilled tax attorneys to interview before selecting one that can help you.
I am recommending a tax attorney because they receive specific training in court proceedure and appeals that CPAs usually have to collect over years of practice. Therefore, they may be able to provide greater options to you than most CPAs.
There are a lot of details in your question that you have glossed over, and will need the details for your interview. You tried an offer of compromise. You should be aware that an incomplete offer is the number one reason they are turned down. This actually frustrates the IRS as well, as they cannot approve any incomplete offers. I’m curious why you didn’t re-submit a corrected offer.
You filed a petition with the U.S. Tax Court. What was the nature of your argument? Did you also try administrative appeals? What penalties were applied, and do you have reasonable cause to ask for the penalties to be removed?