IRS Debt Resolution
Record of Effort

Monthly expenses are approximately $6,000–$7,000, a portion of which relates to an active private business currently in a pre-revenue / revenue-gap phase. Sufficient funds are being generated to cover basic living and business operating expenses, but not materially beyond that.

The taxpayer has been liquidating business assets to cover personal draws during this period. There is no consistent income stream sufficient to sustain the current installment agreement amount of $3,000/month. This is not a refusal to pay — it is a documented inability to pay at the established rate without causing financial hardship.

The established payment plan of $3,000/month was set prior to full documentation of the current financial position and is being renegotiated with Tax Rise to reflect actual ability to pay.

The IRS evaluates ability to pay using a Collection Financial Statement. The following must be documented and submitted to Tax Rise for inclusion in the renegotiation:

① Monthly income — average of last 3 months
② Monthly expenses — line by line, including business operating costs
③ Asset inventory — vehicles, equipment, accounts, with estimated equity in each
④ Narrative of income inconsistency — explain the business revenue gap and asset liquidation

A CP504 is a notice of intent — not a seizure order. The IRS follows a defined process: assessment → billing → Final Notice (Letter 1058 / LT11) → 30-day window → levy action. An active payment plan and engaged representation significantly reduces the risk of levy action proceeding.

The critical protective factor is remaining in active, documented communication with the IRS through representation. Silence is the primary trigger for escalation. This record demonstrates the opposite of silence.

Tax Rise has been directed to: (1) pursue CNC status immediately as a protective measure, (2) renegotiate the installment agreement to reflect actual financial capacity, and (3) formally evaluate whether an Offer in Compromise is appropriate given the financial profile. If Tax Rise is not actively pursuing these strategies, escalation within the firm or engagement of alternative representation will be considered.

The following is a complete itemized record of monthly financial obligations as of April 2026. This record supports the taxpayer's claim of financial hardship and inability to sustain the current IRS installment agreement of $3,000/month. Items marked ⚡ Credit Impact directly affect credit standing and are prioritized accordingly.

The following subscriptions were proactively cancelled as part of expense reduction: Ring (cancelled 4/2), LinkedIn (cancelled 4/2), Audible (cancelled 4/2), People Looker (cancelled 4/6), ERASE.com (paid off), Robinhood Investments (paused 3/14). This demonstrates active effort to reduce monthly outgo.

Beginning Balance: -$553.96  |  Ending Balance: -$639.15
Total Deposits: $15,092.00  |  Total Withdrawals: $14,812.19  |  Fees: $365.00

This account operated in a negative balance for a significant portion of the period, resulting in 10 overdraft fees at $34 each ($340 total) plus a $25 monthly service fee. This is direct evidence of financial hardship and cash flow strain — relevant documentation for the 433-A and hardship argument.

Three separate non-recurring financial obligations came due simultaneously in a 48-hour window, resulting in approximately $3,000 in unplanned cash outflows from the taxpayer's personal account:

1. Storage Fees — $700 (April 9)
Past-due storage unit fees paid to bring accounts current. Business and personal property storage required while in transition.

2. DMV Fine — ~$1,100 (April 10)
Fine assessed for failure to surrender a company truck license plate after canceling vehicle insurance. Statutory requirement not known to the taxpayer — fine accrued over time due to administrative oversight, not willful non-compliance. Non-recurring, involuntary expense.

3. Chase Bank Charge-Off Settlement — $1,200 (April 10)
Chase Bank closed the Ground Force Humanitarian Aid (GFHA) business checking account due to a charge-off with an outstanding balance of approximately $3,500. Chase negotiated a settlement of $1,200 paid by the April 10th deadline. Paid from personal funds on behalf of the nonprofit. Account is now fully resolved. This is a business debt satisfied personally — further evidence of the taxpayer carrying organizational obligations out-of-pocket while income is inconsistent.

IRS Relevance: These three events represent ~$3,000 in involuntary, non-recurring cash outflows in a single 48-hour window — on top of regular monthly obligations of ~$6,000–7,000. This further demonstrates the taxpayer's inability to sustain a $3,000/month IRS installment payment and strongly supports the hardship argument for CNC status, PPIA renegotiation, or an Offer in Compromise.

These events should be documented in the 433-A narrative as contributing factors to financial hardship during Q1–Q2 2026.

The following were identified on the March statement and should be reviewed for cancellation or necessity: Kasidie Ent ($149.95), Vocalfy ($28.99), Splice.com ($21.79), Breeze App ($29.99), Business Insider ($12.95), Tinder ($44.19). Several of these were already triggering overdraft fees — meaning Rob was paying $34 overdraft fee on top of the subscription cost.

The IRS uses Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals) to evaluate ability to pay. The following is a pre-organized summary structured to match what Tax Rise will need to complete and submit this form. Bring this to your next Tax Rise meeting.

① Last 3 months bank statements (all accounts)
② Last 3 months proof of income / revenue records
③ Documentation of asset sales (trailer sale, any other liquidations)
④ Monthly expense receipts / statements matching the figures above
⑤ Business financials showing pre-revenue / gap status
⑥ Credit card statements showing current balances
⑦ Any prior IRS correspondence (all CP notices, letters)