Case 6: Partial Payment Installment Agreement of $39,024

Tax Debt of $39,024 reduced to $3,633 with an Installment Agreement

SITUATION:

An individual reached out to us with a tax debt of $32,000.00. She had filed jointly with her ex-husband who did not want to be responsible for any part of his the debt. The IRS has been taking her tax refunds since 2008 and the debt amount was not decreasing.

INVESTIGATION PHASE:

Our tax team reached out to the IRS to begin the investigation and to find out the current balance of her tax debt. The enrolled agent discovered that the tax years from 2005 thru 2007 were the cause of this debt. In addition to this, the client was now required to file tax years 2011, 2016 and 2017. All of these factors caused the debt to increase and turned out to be a lot higher. When the investigation was completed the balance owed to the IRS was $39,024.88 which included penalties and interest. Her account had recently been assigned to an IRS Revenue Officer. This means that time is of essence as the IRS becomes more aggressive with the collection. The Revenue Officer had already issued a notice to levy against the client’s wages. For the next step, our team quickly identified what was needed to become tax compliant.

COMPLIANCE PHASE:

Our tax team immediately started to work on the preparation of her tax returns for the years 2011, 2016 and 2017. Our enrolled agent carefully planned each tax return and maximized all the allowed deductions for her. Once these were filed and posted, our tax team quickly reviewed the case again to find a resolution for the tax debt of $39,024.88.

RESOLUTION PHASE:

Our tax team proposed an Installment Agreement which is a monthly payment plan designed for the client’s ability to pay. The Installment Agreement that the IRS suggested was for a monthly payment of $407.00 for 72 months. This monthly payment was a bit high for the client but our tax team had an action plan. We had our client accept these terms. This would show client’s interest in paying the debt but most importantly it would prevent a levy against client’s wages. After a couple of payments we requested to update the terms for the Installment Agreement. During this process our tax team was able to eliminate the debt from tax years 2005 thru 2007. Our tax team was also able to separate her ex-husband’s portion of the debt. After these updates were made the tax debt was drastically reduced by over $35,000 dollars. The new tax debt amount was reduced to $3,633.74. In addition, her monthly payment was adjusted and also lowered. She will now make monthly payments of only $151 per month on the reduced amount.

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

Total amount owed: $39,024.88
Settled amount: $3,633.74
Resolutions: Installment Agreement
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.