Advice for best course of action: IRS CSED, Payment Plan Without 433?

You don't mention how much you owe and that makes a big difference. If it is under $25,000 and you can pay about 2% of it every month, IRS would let you have an installment agreement without much fuss if the statute of limitations was not so close (unless you have misread it because the statute of limitations for collection is 10 years from the date of the first bill.)

If you were a normal compulsive gambler then you lost all your gains. You can still file an amended return and claim the losses as itemized deductions provided they are more than the standard deduction. This would make much of the assessment go away and maybe what you have paid will be enough to cover what's left.

.

Further, if your income is not enough to cover "basic living expenses" as defined using IRS allowable expense standards, your account can be classified currently not collectible and the levy on your Social Security income would be released. Statistically hardship exists in about 90% of the cases where IRS levies on Social Security. You just have to get on the phone and talk to them.

The IRS makes no guarantees on when a refund will be paid. If your tax return has been selected for review, they have essentially unlimited amount of time to proceed with the review, however if they have not requested additional information from you within 6 weeks of flagging your return for review then their internal policy requires that they release your return back to the processing queue for payment of any refund due to you. This process is largely automatic. The IRS has 45 days form the filing deadline or 60 days from the date that the return is filed, whichever is later, to send you your refund. If they miss that date, they will pay you interest on the amount due you at the same rate that they charge interest on late payments. That rate is currently 6% but can change quarterly. You cannot sue the IRS in the traditional sense. You can file in Tax Court if you have an issue of law to raise in the amount or method used to assess any tax that the IRS claims that you owe. The Tax Court generally does not consider claims for late payment, since the IRS already is committed to pay interest on late payments. You cannot sue ANY agency of the Federal government until you have followed the procedures of the Federal Tort Claims Act. Your ONLY claim here would be the unpaid interest on the amount that the IRS owes, but since they will pay that interest when they resolve your case if it's paid outside of the timeframes mentioned earlier, you have no claim under the FTCA. The issue on the actual tax due is not covered under the FTCA; it is solely an issue for the Tax Court as your first level of judicial review.

collection statute expiration date (CSED)

And you are also messing around and NOT getting your problem taken care of CORRECTLY as you should have been doing since the beginning for this purpose and time in your life.

And YA is NOT the place that will be able to do this for you because this is your own problem that only you can take care of CORRECTLY at this time in your life so start dealing with the IRS NOW ASAP for this purpose and time in your life.

Taxpayer Advocate Service

http://www.irs.gov/advocate/

Hope that you find the above enclosed information useful. 07/21/2012

completing the 433 A is not the form to apply for installment agreement

it is a statement of your income and your living obligations

since you have been paying on the old debts it would appear that IRS has found they can get the money out of you and very likely submitting the 433 A in hopes of becoming 'uncollectible' are probably slim and slimmer