Update on this: The taxpayer and spouse (no dependents) has income of $157,000. Rent their house. Own 2 cars, no other significant assets (according to brief conversation). Based on rough calculations, they may have an RCP as high as $5000/mo. (I do not know health insurance, life insurance or if they have other secured debt, but I think I have everything else). They are currently paying $3500/mo and, of course, they think that is alot. What to do in a situation like this? Any way to help this client other than teach them how to do a budget? If we present financials to IRS, I assume it is possible IRS will say, “ok, you have ability to pay $5000/mo”.
I guess the question becomes, what are the client’s goals? By increasing payment and coaching them/forcing them to cut expenses, they will obviously pay down debt faster. (perhaps I am answering my own question)
I don’t see any possibilities that do not include full pay.