I have a client who presented me with a completed 433-D. His debt, according to the client from conversations with the IRS field office and collections is $30,897.86. The combined debt, includes interest and penalties assessed and all tax returns are filed. The tax periods are 2005, 2014, 2015, and 2016.
The IRS explained to my client that they can pay $450 per month beginning 1/10/2018 and then on 1/10/2019, the payment has to be $2,050. I imagine CSED is playing a role in the discussion.
He has about $7,000 in savings that is part emergency fund and part downpayment for a house. However, both of these payments do create financial hardship for the taxpayer. In fact, based on income, the payment beginning on 1/10/2019 is not even remotely possible.
I’ve received survey data through Canopy and between his self-employment income and W-2 wages, it’s just not enough to pay and I’m concerned about a CNC status because of liens or other pitfalls such as increase income and just going back to the beginning.
I’d like to try to determine if Fresh Start is an option or an 84-month installment agreement. Also, if he made a down payment of $2,000 to $3,000, would that make it a different story?