<prompt> Human: UPDATED at bottom 812018Hi,Wife and I had just over 50k for 3 years worth of federal tax debt and 50k plus of other debt.Sold our house 4 months ago and paid off everything except IRS. Paid up on estimated for 2018 for Q1 and Q2. Have about 15k in the bank.IRS reps told me I could make one payment to get the sum under 50k. It was around a 600 payment. In doing so I could get an installment agreement over 6 years, WITHOUT subjecting to a financial status review or some such thing where they review incomeexpenses, etc, and a cost of 699mo. Submitted the form in June stating monthly payment of 700 to begin in July. Just got a letter yesterday stating our plan was denied. No reason stated, as is the IRS way. IRS LTR 484C.We had built a budget that would scrape by including this 700 payment.My 1st action point is to call the IRS today after work and see if they can tell me anything useful. And try to speak to a superior if that cannot. I followed the steps as they told me to take care of this debt and they shut me down. It is frustrating to say the least, and wife is panicking.Looking got advice on similar experiences, or from people who work with these situations as tax professionals.I dont believe my wife and I would qualify for a settlement. Take home is average 4400mo. If they garnish we will likely not be able to pay our bills. If they levy, we lose our nest egg and still owe 35k.Edit: Duration of payment plan, from 5 years to 6. Added IRS LTR number 484CUPDATE 812018: Call to IRS seemed fruitful. Rep said that when I made my initial payment I did exactly as I was told by the first rep. I logged online, made a payment, and selected my oldest due tax year 2015 to have it apply there. Rep proceeded to tell me what actually needed to be done was apply it to 2015s penalty for not having health insurance. She said this isnt your fault, yadda yadda, you did as instructed, I will change howwhere your payment was applied, re-fax the 433-D to my fax number vs the general fax number for her department and I will re-enter it and get it set up. There should be no issues this time. Youll receive the paperwork in a few weeksI will update again when I learn the outcome, successful or not.I will also take the time contact a few other professionals to see if its worthwhile to try and alleviate any of the amount owed.Assistant: Probably a naive question Im more of a rpovertyfinance person at this moment but... how does this happen? How can I have this not happen to me?Human: If youre ever self employed for any amount of time, save 30 of your profit for taxes. Put it away. Separate account, separate bank if you have to. Be disciplined. All. The. Time. And ALWAYS, ALWAYS, jump a sinking ship. Hanging on is what hurt us more than anything.  <response>: I was in this exact situation 2 years ago. Held on way too long. Things at home werent good. Took my eye off the prize and held on way too long. Probably even a couple months too long will drowned you.Ended up walking away from the business owing about 9k personal tax. 15k payroll source deductions and 10k to my supplier. Ive since double down and paid all this off and am in a much better spot but it hurt me bad for a while.It took me a year to pay the income tax and the supplier while i put off the payroll source deductions. Last december I got a call from the CRA Canada revenue agency saying I owed 15k in payroll source deductions. I had forgottenthought they may let me off the hook and didnt know the exact number i said ok. How long do i have? He said you have 6 months. 2500 a month or you will have legal action. I had 3k in my bank account so i had enough for the first payment and then i had to work my ass off. Thankfully im out of that situation as i paid it all off at the start of last month. I still have a bit of cc debt but i feel so thankful to be out of under that burden. 