Case 4: Partial Payment Installment Agreement Example

Partial Payment Installment Agreement Example

SITUATION:

A man contacted us owing approximately $23,000 to the IRS because of insufficient withholdings on his 401k contributions. He was forced into early retirement, had nine different back surgeries and was finding it difficult to get a job. The tax year causing the issue was 2013.

INVESTIGATION PHASE:

A power of attorney was completed and our tax professional contacted the IRS 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. Our tax professional discovered that the total balance that was outstanding was $29,198.37, instead of the $23,000, which the client thought he had owed. There were no tax returns missing.

The tax professional reviewed the client’s financial situation, his transcripts, history and unique situation. Then he recommended that the best possible option, based on the client’s financial situation, would be a Partial Payment Installment Agreement of $200/month with the IRS. This amount would have to be paid until the statute of limitations expired on the tax debt.

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: $29,198.37
Resolution Set up: Partial Payment Installment Agreement
Monthly Payment: $200.00
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.