Anyone owe IRS more than $25,000?

[SleepWellNow]

Has anyone set up an installment repayment plan with the IRS for over $25,000?

We have been paying $400/month on $19,000 in back taxes through an IRS installment plan. After our BK discharge, we lost 2 rental properties and now owe approximately $25,000 more in Capital Gains for 2010. We set up our current installment plan by phone with no issues. I've understand setting up a plan when you owe more than $25,000 is much more involved. I'm a bit nervous about this. I'm afraid the IRS is going to take what little assets we salvaged through our Chapter 7 BK and demand a high monthly payment based on Federal expense guidelines allowances (which are very low). Any information will be appreciated.

[IamOld]

Has anyone set up an installment repayment plan with the IRS for over $25,000?

We have been paying $400/month on $19,000 in back taxes through an IRS installment plan. After our BK discharge, we lost 2 rental properties and now owe approximately $25,000 more in Capital Gains for 2010. We set up our current installment plan by phone with no issues. I've understand setting up a plan when you owe more than $25,000 is much more involved. I'm a bit nervous about this. I'm afraid the IRS is going to take what little assets we salvaged through our Chapter 7 BK and demand a high monthly payment based on Federal expense guidelines allowances (which are very low). Any information will be appreciated.

SLEEPWELLNOW, maybe I was lucky - but - I owed about $30K last year on top of already paying $8K on for two separate plan years. Why did I owe so much? 401k withdrwalas to pay credit cards...idiot I am.

At any rate, I spoke to a VERY nice person at the regular IRS # 800-829-1040, and she said for me to ask to be connected to the non-streamline section - wow-a LONG conversation - about two to three hours...there is a form you can fill out (forget what the number is but they'll tell you) where they do a sort of "ch 13" like calculation of disposable income.

BUT - somehow during that conversation the IRS person saw that I never missed a payment etc., and ultimately she said that almost 800 would pay it off in 5 years...(I know I know) she also said that I might want to file the form to get that payment reduced. BUT after the two hours on the phone, she put me on the plan for the almost $800/month. So I think it can be done...you can also take your hat in your hand and go to the IRS local office in person...I think they'd prefer the money per month...bottom line, I think it can be done.

[SleepWellNow]

Thank you IamOld for your response. That is encouraging. Did you wait unitl you received a bill from the IRS after you filed your taxes? Did they file a tax lien against you while on the plan?

We are dealing with a lot of uncertainty right now. As I said, we lost 2 rental homes last year (foreclosure and short sale) and we are currently in a short sale for our last rental and our principal residence. We should be moving (downsizing) to our last rental in a few months after escrow closes on our home. Because of that, our expenses are going to be changing. We also work on commission so our income varies. Some months we don't get paid so coming up with our disposible monthly income may be challenging. I think I'll try calling first and, if if that doesn't work, we'll go in person "hat in hand". I don't think it can be any worse than going in front of the Trustee at the 341. Hahaha!

[IamOld]

Thank you IamOld for your response. That is encouraging. Did you wait unitl you received a bill from the IRS after you filed your taxes? Did they file a tax lien against you while on the plan?

We are dealing with a lot of uncertainty right now. As I said, we lost 2 rental homes last year (foreclosure and short sale) and we are currently in a short sale for our last rental and our principal residence. We should be moving (downsizing) to our last rental in a few months after escrow closes on our home. Because of that, our expenses are going to be changing. We also work on commission so our income varies. Some months we don't get paid so coming up with our disposible monthly income may be challenging. I think I'll try calling first and, if if that doesn't work, we'll go in person "hat in hand". I don't think it can be any worse than going in front of the Trustee at the 341. Hahaha!

Thanks so much...YES I waited for the bill, and no they didn't file tax lean - as long as you keep paying...since your case seems more complex, maybe you want to do this in person??? Of course sometimes I guess it also depends on who you get on the other side...

[disconapper]

WOW, just seeing this thread in the Forum
I owe about 23K to the IRS and 4K to the state...

FORM911 is what I used, I was assigned an IRS Advocate from the local TaxPayer Advocates office. I also had to complete Form 433A, that's explanation of current expenses. Then my case worker figured out an appropriate re-payment. That was still in process when I decided to file Bankruptcy. So I guess the re-payment is now on hold, not sure, I probably should call her and find out what to do I think they will hold off till after discharge. I must say, that out of all the debt collectors the IRS has been the easiest to deal with. My Advocate has been super friendly. Taxes are a priority debt, and the IRS has huge rights when it comes to collections so maybe they know they are going to get their money one way or another and have decided that there is no need to be nasty. I haven't even begun to deal with the state yet, they are garnishing my wages, hopefully the bankruptcy will stop that and I will have a chance to work something out with them. Who knows...

[IamOld]

Hello again Disconapper...(yep still at work...)

I never thought about form 911 - I was just so happy to be able to work something out...well, my spouse's ch 13 - according to atty!! - will pay IRS at 100%, so in THEORY they should not come after me...cause we really cannot afford to pay Ch 13 PLUS existing IRS plan. I filed spouse separately for 2010 so Trustee/atty can have her 2010 tax return, which means I owe an unseemly 25K for 2010...oh well.

My turn with atty is ironically (i think I said that to you already) is ONE DAY after spouse's 341..we'll see what atty says about 2010 - BECAUSE if I file, I wonder if I can get payment plan for my 2010 tax OR will that make IRS object to plan confirmation of my spouse...BUT technically 2010 is MINE only but 2009 and before are joint...so spouse in Ch 13 is paying back IRS IN FULL - so I hope that's "ok" with them...(any wisdom would be greatly appreciated!!! :-)

At any rate, I have read that post petition debt can be included in a regular payment plan - like you said, they get their money anyway. AND this year, man, there is NO way, NONE that I can owe more than say a few hundred AT MOST.

So we'll see.

Let us go home disconapper!!! (my employer is closing early today!!!!!)

WOW, just seeing this thread in the Forum
I owe about 23K to the IRS and 4K to the state...

FORM911 is what I used, I was assigned an IRS Advocate from the local TaxPayer Advocates office. I also had to complete Form 433A, that's explanation of current expenses. Then my case worker figured out an appropriate re-payment. That was still in process when I decided to file Bankruptcy. So I guess the re-payment is now on hold, not sure, I probably should call her and find out what to do I think they will hold off till after discharge. I must say, that out of all the debt collectors the IRS has been the easiest to deal with. My Advocate has been super friendly. Taxes are a priority debt, and the IRS has huge rights when it comes to collections so maybe they know they are going to get their money one way or another and have decided that there is no need to be nasty. I haven't even begun to deal with the state yet, they are garnishing my wages, hopefully the bankruptcy will stop that and I will have a chance to work something out with them. Who knows...

[HHM]

The "form" referenced earlies is IRS Form 433-A Collection Information Statement. It is a financial disclosure.

Generally, the IRS is most aggressive and most harsh in collecting amounts between 25-80K. Under 25K and there are specific programs, over 25K, then you are in a new ball park. Over 100K and the IRS starting getting a little more lenient (ironically enough) because they realize they are not going to get all of it in most cases.

So, what happens will really come down to your numbers. It's not that they are hard to work with in that 25k+ range, its just that rules get more stringent on what is accepted and allowable as an expense.

[IamOld]

Well, thus far I've been a good customer :-)

I'm still scared about not making my April 2011 IRS payment, BUT atty said it's in the plan....

The "form" referenced earlies is IRS Form 433-A Collection Information Statement. It is a financial disclosure.

Generally, the IRS is most aggressive and most harsh in collecting amounts between 25-80K. Under 25K and there are specific programs, over 25K, then you are in a new ball park. Over 100K and the IRS starting getting a little more lenient (ironically enough) because they realize they are not going to get all of it in most cases.

So, what happens will really come down to your numbers. It's not that they are hard to work with in that 25k+ range, its just that rules get more stringent on what is accepted and allowable as an expense.