How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask jgordosea Your Own Question

jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3011
Experience:  I've prepared all types of taxes since 1987.
3653323
Type Your Tax Question Here...
jgordosea is online now
A new question is answered every 9 seconds

getting interest and penalties decreased or waived

Resolved Question:

I have a 50,000 tax bill with the IRS (corporate). I can afford 400 per month for 10 years to repay it; however, If interest and penalties continue it will never be repaid. I have no assets. Just went through chapter 7 and house went deed in lue.
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.

Is that tax debt owned by you or by the corporation? What type of corporation do you have?

How old the tax debt? When it was assessed?

Customer: replied 6 years ago.
Reply to LEV's Post: I have an S-corp. I am the president and my wife is the vp. The corporation does not show any profit for the past few years. When we filed for chapter 7 it included an SBA loan, who sold the equipment to repay the balance on the loan.

the tax debt runs from 09/2004 to 03/31/2007.

my wife has her own business, which is ran as a sole proprietor and just opened last year. She does not show any profit as well at this time. We would like to minimize her exposure since we need her income to help with our monthly personal bills.
Expert:  Lev replied 6 years ago.
Did you file bankruptcy for S-corporation?
Expert:  jgordosea replied 6 years ago.

Greetings,

Whether or not the $416 that the IRS says is the minimum payment it will accept is enough to fully pay the debt (plus the interest and penalty) does not stop you from paying that amount, which you say that you can do.

The IRS can accept an installment agreement that will not fully pay all the interest and penalty before the time that is allowed for collection runs out. This is referred to as a Partial Payment Installment Agreement (PPIA).

See Legislation Allows Partial Payment Option at irs.gov for more information, including:

Taxpayers who request a PPIA must provide complete and accurate financial information that will be reviewed and verified. Taxpayers will also be required to address equity in assets that can be utilized to reduce or fully pay the amount of the outstanding liability.

In addition, taxpayers granted PPIAs will be subject to a subsequent financial review every two years. As a result of this review, the amount of the installment payments could increase or the agreement could be terminated, if the taxpayer's financial condition improves.

The PPIA payment option will provide an appropriate payment option for many taxpayers. Those who qualify for the PPIA option will be strongly encouraged to make their payments via the direct debit option.

So, you can accept paying the $416 now; but will have to supply financial information in the future and the minimum amount may change based on your situation at that time.

Interest can not be waived unless the IRS has made some error in figuring the interest. Penalty can sometimes be waived; but is usually based on reasonable cause as to why the tax was not paid when due. (Not having the money to pay the IRS; but paying other bills is not reasonable cause.) Whether a request for waiver of penalty is still available depends on the history of your case. It is worth your time and effort to sit down and discuss your specific case with a tax practitioner experienced in penalty abatement (such as an Enrolled Agent ) to explore if a request still can be submitted (or if it is worthwhile to try to get appeals reconsideration in your case). Many tax professionals will disucss your situation to see if you are a potential client at little or no cost to you.

I hope this helps you to understand that a Partial Payment Installment Agreement is available.

Best wishes.

Customer: replied 6 years ago.
Reply to LEV's Post: no. i did file chapter 7 personally.
Customer: replied 6 years ago.
Reply to John Gordos EA's Post: is the enrolled agent the irs agent or a special tax professional?
Expert:  jgordosea replied 6 years ago.

Hello again,

See NAEA : What is an Enrolled Agent? : An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.

See also Find an Enrolled Agent to find a representative, if you choose. Or, ask around for a referral.

I hope this helps.

jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3011
Experience: I've prepared all types of taxes since 1987.
jgordosea and 3 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.