Addressing your tax debt is a big step. It’s an overwhelming process, but you’ve made a good-faith effort to set up a payment plan with the IRS. Despite these efforts, you’ve received a notice from the IRS rejecting your proposed monthly payment amount. You may be feeling discouraged and unclear about your next steps. If you’ve received such notice, Highland Tax Group can explain your options and help get your payment plan back on track.
Why Was My Monthly Payment Amount Rejected?
The IRS may have rejected your monthly payment for several reasons. You may recall that when you requested a tax debt repayment plan with the IRS, you submitted a Collection Information Statement. You likely did this by filing either Form 433-A or Form 433-F, depending on the amount you owe and the complexity of your financial situation.
These forms help the IRS calculate what it believes you can realistically pay after considering your allowable living expenses. Your monthly proposed amount may be rejected if it differs from the IRS’s calculation. Sometimes, the number varies because you haven’t adjusted expenses to match IRS standards.
Other reasons your monthly payment amount may have been rejected include:
- Providing false or misleading financial information
- Previously defaulting on IRS payment plans
- Having outstanding unfiled tax returns
- Assets could be used to pay down the debt
- The request has missing or incomplete information
Can I Appeal the IRS’s Decision?
It’s not uncommon for a taxpayer and the IRS to disagree on a monthly payment amount. It can feel like IRS calculations don’t take your real-life financial situation into account. Fortunately, you can appeal the decision and negotiate a payment plan.
You must appeal the IRS decision within 30 days; your rejection notice will outline the specific deadlines you need to be aware of. To appeal, you will need to submit an appeal request form, Form 9423. You may also need to provide additional financial documentation or make changes to the previously submitted forms, as mentioned above.
Highland Tax Group Can Help When Your Monthly Payment Amount is Rejected
At Highland Tax Group, our qualified tax professionals will explain why your proposal was rejected and provide guidance on how to approach an appeal. Appealing and negotiating with the IRS is no easy feat, but we will work to secure a realistic payment plan that aligns with your financial situation and meets IRS requirements.