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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3004
Experience:  IRS licensed Enrolled Agent and tax instructor
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I have an existing payment plan with IRS taxes. My income

Customer Question

I have an existing payment plan with IRS for back taxes. My income has taken a huge hit and i need to ask for a settlement or reduction in payments. Can't reach irs via phone due to high call volume. Best form to fill out?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi My name is ***** ***** I will be happy to help you.

Once an installment agreement is in place, you have to keep up with the payments or call IRS immediately to discuss your options. Unfortunately there's no time for filing/mailing letters or forms and there are no forms to fill out and mail since processing time can take up to 8 - 10 weeks. You will have to talk to an agent. And you definitely don't want to miss the payment or your agreement will be canceled.

https://www.irs.gov/uac/What-if-I-can't-pay-my-installment-agreement%3F

The best time is usually early in the morning between 7a and 8.30am, Tuesdays and Fridays tend to be very busy, Mondays mornings before 9am are very good. Waiting time could be between 15 - 30 minutes on average, but it could be up an hour.

Sorry, I wish I could give you a better news.

Customer: replied 1 year ago.
Why not offer in compromise?
Expert:  emc011075 replied 1 year ago.

Yes, you can do offer in compromise but it takes 6 - 9 month to process it. In meantime if you cannot make the payments you have to notify IRS as soon as possible. You only have 2-3 weeks maybe before your next payment is due.

Expert:  emc011075 replied 1 year ago.

If you miss the payment IRS will cancel your installment agreement and if your offer in compromise is not already under review at that time, IRS will restart the collection process, which could be placing lien on your property, garnishing your wages or funds in your bank(s)...

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.