From $70,000 IRS Debt to a Structured Payment Plan
The Problem
A client came to us owing approximately $70,000 to the IRS across multiple tax years.
levy action
strategy in place
(ACS)
Process (CDP) hearing
The situation was fragmented and at risk of escalating.
The Challenges
- Significant IRS balance due with ongoing penalties and interest
- Taxpayer unable to full-pay the liability immediately
- Need to restore compliance and evaluate resolution eligibility
- Financial limitations requiring a realistic and sustainable payment structure
- Concern regarding ongoing IRS collection activity and long-term financial stability
The Strategy
Rather than allowing the case to remain in Appeals and delay the process,
we focused on establishing a structured and controlled resolution.
01
Evaluating whether remaining in the CDP process would provide any meaningful advantage
02
Determining that continued delay would extend the IRS collection timeline without improving the outcome
03
Repositioning the case to bring all tax years under a coordinated resolution
04
Advising the client to make voluntary payments to demonstrate good faith and strengthen their position
The Outcome
The IRS approved a non-streamlined installment agreement of approximately:
$970 per month
- The client moved from uncertainty to a structured and predictable resolution
- Further enforcement action was avoided, provided compliance is maintained
- The case was stabilized across all relevant tax years
- The client now has a clear and manageable path forward
Preventing escalation
Creating structure
Managing the situation effectively
Key Takeaway
The IRS will collect what is owed.
The key is structuring how that happens.
With the right approach, even a significant tax liability can be turned into a manageable and controlled situation.
If you are dealing with IRS collections, liens, or payment issues, it is important to address the situation with a clear strategy.
Schedule a consultation to discuss your situation and next steps.
Wayne A. Scully, CPA • CIA • CTR
Former NYS Comptroller Auditor
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