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About Dan Lively
Expertise
I can answer questions regarding personal, corporate, partnership, estate and gift taxes. These questions can relate to problems, compliance, or planning. I am well versed in IRS audit and collection procedures and can respond to questions you may have in this area as well.

Experience
I am an attorney in the state of CA that is certified as a tax specialist by the State Bar of California Board of Legal Specialization. I am also a Certified Public Accountant, and have an LL.M in Taxation. Further, I am an adjunct professor of taxation at Whittier College of Law.

Organizations
Orange County Bar Association American Bar Association Orange Coast Estate Planning Counsel American Association of Attorney/CPA's California Bar Association

Publications
Apartment Journal Taxing Advice California CPA Journal

Education/Credentials
LL.M (Taxation) - Chapman University College of Law JD (Law) - Western State University College of Law BS (Accounting) - California State University, Northridge

Awards and Honors
• American Jurisprudence Award – Federal Taxation • American Jurisprudence Award – Wills • American Jurisprudence Award – Estate Taxation • Cal Jur Award – Partnership Tax • Cal Jur Award – Corporate Tax • Cal Jur Award – Tax Procedure

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Tax Law (Questions About Taxes) - Tax Issue

Expert: Dan Lively - 11/1/2009

Question
Hi,

Thanks in advance for reading this; I will try and keep this as concise as possible.

I am a 34 year old male who currently owes the IRS $36k. I work in finance and due tot he recent collapse of the markets and associated business, I have been not be able to pay down the incremental amounts that I owe from each of the past 9 years.
Apparently, now that I am above owing $25K I cannot set up a payment plan. Therefore, I need to pay down $11K just to be able to get back on a payment plan.
I currently run a small consulting company that has generated maybe $25K in the past 12 months. I have NO OTHER source of income.

I have until the end of November to find that $11k and I am simply terrified since I know its not going to happen.

Do I have any options here??

I could potentially pay maybe $500/monthly payments for a year or so until my business comes back on line but they wont even entertain a payment plan.

I really never meant for this to happen but I did what I did to survive.

Any help and/or advice is greatly appreciated.

Best,

Avi

Answer
Avi,

Just because you owe over $25,000 does not mean that you cannot have a payment plan. Generally, the IRS wants to file a lien if you owe over $25,000. The Service will request that you complete a financial disclosure statement if you owe this size balance and cannot pay it within 30 days. You should call the IRS and ask to speak with the revenue officer assigned to your case. If one is not assigned (it is in automated collections), ask for one to be assigned. Then talk to the revenue officer and explain your situation, and that you would like to make payments. Generally, they will work with you. Don't wait, do this right away.

This response does not constitute legal, accounting or other professional advice. Only through a personal, confidential consultation with qualified legal counsel can anyone properly evaluate their own unique legal challenges and determine what, if any, appropriate legal strategies and tactics should be implemented to meet those challenges.

Circular 230 Disclaimer - Nothing in this response is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisers regarding the same.

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