Hi,
Wife and I had just over $50k for 3 years worth of federal tax debt and $50k plus of other debt.
Sold our house 4 months ago and paid off everything except IRS. Paid up on estimated for 2018 for Q1 and Q2. Have about $15k in the bank.
IRS reps told me I could make one payment to get the sum under $50k. It was around a $600 payment. In doing so I could get an installment agreement over 6 years, WITHOUT subjecting to a financial status review or some such thing where they review income/expenses, etc, and a cost of $699/mo.
Submitted the form in June stating monthly payment of $700 to begin in July. Just got a letter yesterday stating our plan was denied. No reason stated, as is the IRS way. IRS LTR 484C.
We had built a budget that would scrape by including this $700 payment.
My 1st action point is to call the IRS today after work and see if they can tell me anything useful. And try to speak to a superior if that cannot. I followed the steps as they told me to take care of this debt and they shut me down. It is frustrating to say the least, and wife is panicking.
Looking got advice on similar experiences, or from people who work with these situations as tax professionals.
I don't believe my wife and I would qualify for a settlement. Take home is average $4400/mo. If they garnish we will likely not be able to pay our bills. If they levy, we lose our nest egg and still owe $35k.
Edit: Duration of payment plan, from 5 years to 6. Added IRS LTR number 484C
Submitted July 31, 2018 at 01:14PM by sir-jwack https://ift.tt/2LSl5wn
