The situation
Renee, a public school teacher in Georgia, owed about $28,000 after a year of side income went untaxed. The IRS proposed an installment agreement of $1,150 a month — more than her household could possibly absorb. She was about to agree to terms that would have left her short on essentials.
What we did
- We documented her income and allowable living expenses under IRS national and local standards.
- We demonstrated that the IRS’s opening number left her unable to meet basic costs.
- We negotiated a installment agreement based on her actual ability to pay, not the IRS’s first demand.
- We set the plan up as direct debit, which also positioned her for a future tax lien withdrawal.
The outcome
The agreed payment came down from $1,150 to $290 a month — sustainable for her budget — and active collection stopped. Renee now has a predictable payment she can live with while the balance steadily comes down.
The first number is rarely the final number
The IRS often opens with a higher monthly payment than you need to accept. Documented allowable expenses can justify a much lower, sustainable payment.
Get a payment plan that fits your real budget.
Get a no-obligation review of your tax situation and a clear plan for resolving it.
Start Your Free ConsultationFrequently Asked Questions
About these stories
Illustrative client scenarios based on common case types. Individual results vary. These scenarios are composites drawn from common case types we handle at US Certified Tax Services; they are not specific named clients and are provided for illustration only. Outcomes depend on your individual facts and IRS determinations. For a review of your situation, request a free consultation.