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According to TurboTax I do not qualify for a new payment plan. I currently pay $200. per mo with a bal of 12,500. and now owe another 13,275.
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I'm not certain what Turbotax is referring to, I can say with the higher liability the IRS or Franchise Tax Board is likely to want more money to satisfy the debt within the Statute of Limitations. In order to maintain your $200 per month payment on the higher liability, you will likely need to submit a Financial Statement and supporting documents to show that you do not have the ability to pay more.
As an example, if you owe $26,275 to the IRS, then they will want the entire amount within 72 months. That works out to $365 per month. If you can't pay that amount per month, then you will need to prove it. Let me know if you have any other questions.
Best regards,
Adam Brewer, Esq.
AB Tax Law APC
1-888-351-3707
Answered on Apr 08th, 2014 at 10:33 PM