What a difference an agent makes

[Lydia Leftcoast]

As a self-employed person for the past 14 years, I have more occasions to contact the IRS than the typical wage earner does, and today was one of those days.

Instead of having our income tax and FICA payments deducted from our paychecks, we self-employed people pay quarterly estimated tax that is supposed to include both. This is supposed to add up to our income tax obligation.

It doesn't always work the way it's supposed to, however, especially when a given year has been really profitable or really unprofitable. One pays too little estimated tax or doesn't have the cash on hand to pay it when it's due. In such cases, one files a return anyway and waits for a stern letter from the IRS.

If you can't pay on the designated date, you work out an installment plan with an IRS agent. I have had to do this four times. This year, my income was noticeably lower than the previous year, so I knew that once more, I'd have to go in and face an IRS agent, make a partial payment, and hammer out a new installment plan.

The last time, I got Agent Meanie, who made me feel as if I was some sort of lowdown, stupid, cheating deadbeat and (gleefully, it seemed to me) imposed a rather heavy monthly payment, which I was still working under when I went in today. The session with Agent Meanie a couple of years ago took about half an hour, complete with sermons about financial responsibility, during which he acted as if I was some disgusting piece of dishonest slime.

Today, I got a pleasant, grandmotherly woman, who just nodded when I explained my situation ("Bad year, huh?") I was sitting there, half expecting to have my monthly payment upped again, when she said, "How much can you pay today? I'll just roll the rest into your existing repayment contract." It was over in five minutes. "That's it?" I said, hardly daring to believe that it was true.

"Oh yes," she said. "If you're not actively avoiding payment, you're in compliance. Have a nice day."

Thank you! I think I will!