Case 1: Partial Payment Installment Agreement Example

Partial Payment Installment Agreement Example

SITUATION:

A woman called us because she owed the IRS due to not having had her federal taxes deducted from her paycheck for a couple of years. As a result, her wages were garnished. She tried to work something out on her own with the IRS. She agreed to a payment plan but was unable to continue with the payments as they were too high.

She informed the CuraDebt Tax Account Executive that the total amount owed to the IRS was $15,000.

INVESTIGATION PHASE:

After the client engaged the services, a power of attorney was completed to give our tax professional rights to work on her behalf. Our tax professional made contact with the IRS representative to discuss the account and request an immediate stay of enforcement. Master tax files were pulled as well as tax transcripts. The client’s financials were gathered and organized into the proper forms. Bank statements, letters, correspondence, and other information were reviewed and analyzed. The tax professional discovered that the total balance that was outstanding was $19,072.42 instead of the $15,000 that the client initially thought that she owed. No tax returns were missing.

The tax professional reviewed the client’s financial position, transcripts, history, her unique situation, and recommended that the best possible option, based on the client’s financial situation would be a Partial Payment Installment Agreement of $100.00/month with the IR. this amount would have to be paid until the statute of limitation expired. The $100.00 was much less than what the client was originally paying them.

RESOLUTION PHASE:

During the collection hold period the client decided to proceed with the Resolution Phase of the program. The tax professional contacted the IRS to set up the Partial Payment Installment Agreement.
Partial Payment Installment Agreement was set in place with the IRS as follows:

Total amount owed: $19,072.42
Resolution Set up: Partial Payment Installment Agreement
Monthly Payment: $100.00 (Until expiration of tax debts due to statute of limitations)
Phases worked: Investigation and Resolution

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DISCLAIMER:

This example is an actual example of a client who enrolled in the tax program. Every case is unique and this is not an extension that you will receive the same resolution as they will. Your situation is unique, as are all tax cases. The team has extensive experience, has former IRS employees, special officers, enrolled agents, tax attorney, and CPA’s. Our tax team will work diligently with a flat fee to solve the tax issue you have for the best possible resolution for you. That means doing all possible to ensure you pay the lowest amount of taxes legally required based on your situation, allowable deductions, finances, and other factors.