Partial Pay Installment Agreement Success

The client works as a self-employed general contractor. Work had gotten slow in the years leading up to the pandemic, and nearly stopped during the pandemic shut down. Due to the financial stranglehold this put him in, he fell behind on making his estimated tax payments, and incurred a sizable tax debt. He came to work with Dickmann Tax Group as he could no longer afford the aggressive, high dollar monthly payments the IRS demanded of him (nearly $700 a month).

Dickmann Tax Group immediately ceased the aggressive monthly payments and secured a hold of enforcement so there would be no bank levy or garnishments issued by the IRS. We then secured a statement of his financial condition to determine the best settlement option to suit his ability to pay the debt. We determined that he was unable to make payments, but in Good Faith offered an agreement of $50 a month, to which the IRS accepted. Under this agreement, the client will only pay a portion of his debt (roughly 10%) before the IRS can no longer legally collect the debt due to expiration of the collection statute.

Obviously all tax situations are different, however if you would like to learn more or schedule time to discuss your own tax issues, please click here and we would be happy to assist you.