I can’t afford an IRS payment plan. What should I do?
I always have clients come to me and tell me “I have an IRS payment plan and I can’t afford to pay it. Can you help me?” Of course I can! It doesn’t matter if the payment plan was just set up or has been set up for years. It is actually fairly simple to reduce the payment plan. It is simple because you have the law on your side in reducing an IRS payment plan.
The law says that the IRS has to allow you enough money per month to pay for your monthly necessary expenses. For instance, if your monthly expenses total $3,500 a month and your income totals $3,700 a month, the most the IRS can take is $200 per month. If your income is only $3,550, then your payment plan should be $50 a month. If your income is $3,000 a month then you shouldn’t have to pay anything per month.
If you fall under the above scenario contact the IRS and get your payment plan reduced. If the current Revenue Officer won’t agree with you speak to their manager. There are some cases that a few more tools will have to be taken out of the toolbox to accomplish the reduction but in most cases these tools should be adequate.