Case 5: Partial Payment Installment Agreement Example

Partial Payment Installment Agreement Example

SITUATION:

A woman who called us, unfortunately, had her own business which failed. To keep her business afloat, she used the funds that were supposed to have been paid over for payroll taxes to fund her business operations. As a result, she was personally assessed with a Trust Fund Recovery Penalty. She was of the opinion that she was on a payment plan and had been sending monthly payments to the IRS. In reality, the IRS was receiving the payments and had proceeded to garnish her payments, as she was not in an official agreement with them.

The total amount of tax debt which was being collected on was $522,377.91.

INVESTIGATION PHASE:

A power of attorney was completed and our tax professional made contact with 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 pertinent information were reviewed and analyzed.

The tax professional reviewed client’s financial situation, transcripts, history, her unique situation. Based on the information, it was recommended that the best possible option, based on the client’s financial situation, would be a Partial Payment Installment Agreement of $300.00/month with the IRS. This would be paid until the statute of limitations had expired.

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, and the acceptance letter from the IRS was received.

Partial Payment Installment Agreement was set in place with the IRS as follows:

Total amount owed: $522,377.91
Resolution: Partial Payment Installment Agreement
Monthly Payment: $300.00
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.