I am a small business owner ( 8 employees ) and had fallen behind on 941 payroll tax deposits. I have worked with the IRS agent assigned to me but he has become, in my opinion, somewhat unreasonable in attempting to establish an installment agreement. Is there a risk of upsetting my current assigned agent by calling on the available IRS "taxpayer advocate" to come to a more acceptable agreement?
(by "IRS agent," I mean a "revenue agent." )
There would seem to be no disadvantage here in using the taxpayer advocate. However, you may be better served to retain a tax attorney to assist you. A paid advocate should give you more bang for the buck.
Hope this helps.
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I don't see any downside to contacting the taxpayer advocate's office for your area. The advocate for Indiana is located in Indianapolis.
There are some things to think about, though.
1) Was falling behind on 941 taxes a problem of cash flow, business systems, or an indication that you should close your business?
2) Are you taking appropriate care to see that you don't wind up being personally liable for these unpaid taxes?
3) Are you working with a tax attorney to get appropriate advice about these issues?
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. Do NOT rely on anything I have written here -- You should contact a lawyer in your area immediately after reading my posting. The following disclosure is required pursuant to IRS Circular 230: unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.
It is unlikely the tax payer advocate will be able to do anything to help in your situation. Have you talked to the revenue officer's manager. That may help.
You could really benefit from a tax attorney who handles IRS collections. Find a local attorney who can help you plan and negotiate with the IRS.