Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I had owed the IRS $236,543 in October 2011 for income taxes

from 2004 - 2009....
I had owed the IRS $236,543 in October 2011 for income taxes from 2004 - 2009. I entered into an installment plan in October 2011 for $658 per month. I have made these payments for the past 2 years. I am being forced to retire due to health problems, as I am now 67 years old. I will be living on $1184 in social security benefits and about $20,000 in savings. I will not be able to continue to pay $658 a month. What are my options.
XXXXX XXXXX
Show More
Show Less
Ask Your Own Tax Question
Answered in 6 minutes by:
11/11/2013
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,878
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Lane :

Hi Gary,

Lane :

You essentially have two options: (1) Negotiating a new or existing installment agreement or (2) an offer in compromise

Lane :

To ask for a change in amount, you need a Form 433-D. You can get this and download it from IRS website here : http://www.irs.gov/pub/irs-pdf/f433d.pdf
On the 1st page, there is a "Date of increase or decrease" statement, so there is way to decrease your payments

Lane :

That was option (1) ... Option (2) is an offer incompromise. Here'w what IRS says on that:


Offer in Compromise


An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:



  • child">Ability to pay;

  • Income;

  • Expenses; and

  • Asset equity.



Lane :

They actually have an offer in Compromise pre-qualifier on their site here: Offer in Compromise Pre-Qualifier

Customer:

They are showing a balance of $40,000 for 2007 & 2009. Paid off 2008, and showing no balance for 2004 - 2006. Do you think they will settle this in an offer in Compromise.

Lane :

Given your change in circumstances, they might. You CERTAINLY have a good chance of lowering the amount of payment based on BOTH the good record and change in icome

Customer:

Thanks

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,878
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now

Thank you Gary.

Good luck.

Be proactive and you'll be fine here.

Lane
Ask Your Own Tax Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,878
12,878 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

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

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.WMatteson, 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.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, 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.

OrvilleHesperia, 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!!!!

AlexLos 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.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
This is a question on a UK resident's personal income tax on
This is a question on a UK resident's personal income tax on lump withdrawals of funds in a Canadian RRSP using an example with funds expressed in $CAN. Value of lump sum payment from the RRSP is $100… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Are you familiar with income tax laws on business and
Are you familiar with income tax laws on business and personal returns? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I NEED A COPY OF MY 2016 FILED INCOME TAX. DESK TOP
I NEED A COPY OF MY 2016 FILED INCOME TAX JA: What kind of computer do you have? Customer: DESK TOP JA: Have you installed any updates recently? Customer: NO JA: Anything else you want the Computer Ex… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
If I purchase a business asset with a 5 years installment.
Hi,If I purchase a business asset with a 5 years installment. The asset is an office furniture. Can I can section 179 even if I am going to pay off the furniture in 5 years? Please note that I am on t… read more
Amanda Russell
Amanda Russell
Accounting Tax & Profit Strategist
Master\u0027s Degree
9 satisfied customers
Is real estate income taxed only in the state they are
Hi. Is real estate income taxed only in the state they are generated in? For example, if someone owned investment real estate in Texas that has a 0% state income tax and lives in Pennsylvania, would t… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I have a question regarding the ordinary income tax. If the
Hello, I have a question regarding the ordinary income tax. If the ordinary income tax due is negative does that apply anywhere? This pertains to the sale of an S corp .business. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I have a installment agreement to pay FICA taxes that I
I have a installment agreement to pay FICA taxes that I could not pay in past years from employee with holdings. Can I deduct the tax portion paid on the installment agreement, since it wasn't deducte… read more
abci168
abci168
Principal
27 satisfied customers
Income Tax question: When the AGI is very and none of the
Income Tax question: When the AGI is very and none of the donations are deductible, and standard deduction is taken. Will the donation for that year carry forward even though standard deduction is tak… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
Is everyone who works expected to pay income tax, If a
If a person cannot supply information to say he can provide for his wife & child what is he refusing to tell the powers that be … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,878 satisfied customers
I have an IRS tax lien and making installment payments. I am
I have an IRS tax lien and making installment payments. I am likely to win a lawsuit within the next year. Can IRS attach my settlement? … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,878 satisfied customers
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2 FROM HER EMPLOYER WITH A TYPO IN THE SOCIAL SECURITY NUMBER. TO DATE THE EMPLOYER HAS NOT PROVIDED A "CORRECTED" FORM W-2. IS THERE AN IRS "… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,230 satisfied customers
Tax question: I have an installment agreement with the IRS
Tax question: I have an installment agreement with the IRS for past tax years (2014-15) and have been paying $500 a month on about $27,000, For this past tax year (2016) I paid my tax bill in full wit… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I would like the forms for estimated income taxes. I would
I would like the forms for estimated income taxes. I would like to talk to someone in that department. I would like a phone number.… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I have an installment agreement question, I owe less than
I owe less than 1000 from previous years taxes federal..now we owe more for this year...I can pay off the old one first..but can I still do an installment agreement without a filed tax lien on the new one..and if so what are the dollar values..10k or 25k balances owed? … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,878 satisfied customers
If I have an installment agreement can IRS take money from
if I have an installment agreement can IRS take money from my account? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I did an Installment agreement with IRS for tax year 2015;
I did an Installment agreement with IRS for tax year 2015; this tax year (2016) I own taxes again but cannot afford to pay; Can I add this new debt (2015) to the old one (2014) if yes how is the proce… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I have an installment agreement with the IRS ( My CPA lied
I have an installment agreement with the IRS ( My CPA lied to me about the agreement, then IRS placed lien on my home) I am behind in mortgage payments , dont have money to pay THIS Years taxes- can I… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
I have a installment agreement with the IRS. I have made my
I have a installment agreement with the IRS. I have made my payments on time but I did not receive my monthly agreement bill this month. I paid it anyway but was just wondering why I didn't receive a … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x