1. Call the IRS (the number is included on your denial letter).
2. Provide information on why your installment agreement should be accepted.
3. In case they still reject you, ask for a Revenue Officer or Manager. Do not hesitate to continue the process. There’s always a hope another person will approve your agreement.
4. Explain your Collections Manager the case and current situation.
5. Fill out Form 9423 – Collection Appeals Request, in case you received the original rejection in writing.
6. A written letter is attached to Form 9423. This way you can better explain your situation.
7. A final decision will be sent to you soon. Remember this decision requires both parties involved.

Do not hesitate to hire a tax professional in case of serious doubts, worries and uncertainty. You will get an opportunity of asking specific questions and evaluating your time to succeed in the agreement process.

File an appeal for an installment agreement termination or rejection. Do not give up in the process of installment agreement approval, as you really need it. Use the above mentioned information to file an appeal.

The IRS May Negotiate With You For A Smaller Amount Than You Owe

If you receive notices of past due taxes from the IRS, TRY TO DEAL WITH THEM AS SOON AS POSSIBLE.

You should always be aware of your debt. This way you have an opportunity of making your case.

You can use a lot of methods to deal with your debt with the IRS. One of them is called an “Offer in Compromise”. Using it, you can prove the IRS you have serious financial troubles, and the IRS can offer to settle your debt for a lesser amount.

Be sure to provide full disclosure of all you assets, income and expenses and do not hide real information.

Use your right to qualify for an Offer in Compromise, in case they determine you are unable to pay the whole sum of the tax debt or are not liable for some or all of the tax liability.

Be sure you are current on all your Income Tax Filings, if you own a business with employees, their tax deposits must be current. Your estimated tax payments must be up to date for the current year, complete IRS Form 656-A, the Offer in Compromise and an accurate collection information statement (your assets, income and expenses), IRS Form 433 A and/or B.

The IRS will determine a new amount of your tax liability and the way to pay it.

Your life will become better, when you pay the IRS.

The package also includes A worksheet and relevant information and instructions. Individual or self-employed taxpayers are obliged to present a collection information statement in form 433-A.

Be sure to prepare a written narrative, concerning your state of affairs and family financial troubles caused by paying the tax in full. Include relevant public policies or equity considerations. Attach an income certification in form 656. Collect all the necessary financial documents and attach them to your application. Check the signature and date. An application fee of $150 is paid in the form of a check or money order. Some taxpayers are eligible for exemption of application fee.

Check Offer in compromise application carefully before you submit it, as any errors lead to delays and rejection. Find a lawyer to assist you in the procedure. You can also use special software. Fill in form 2848, sign it and send to a lawyer since a power of attorney is essential to represent the client before the IRS.

You can find offer in compromise form online, get it from a local IRS office or even order over the phone. Fill in the application and mail it to the concerned office. Residents of the western states should forward their application to Memphis and eastern states to Holtsville, NY.