Tax Defense Network understands many taxpayers who have tax debt seek to be granted a settlement when resolving their back taxes with the IRS. However, most are only aware of the highly exclusive IRS settlement plan, Offer in Compromise, and overlook the more flexible Partial Payment Installment Agreement plan.
“This IRS program is easier to qualify for than an Offer in Compromise, and it is often more budget friendly for many of our clients. OICs require payments upfront and their repayment term is a maximum of 24 months,” says Sarah Deierlein, Enrolled Agent at Tax Defense Network. “Many taxpayers do not realize that by paying minimized monthly payments, up to the point of the expiration of their Statute of Limitations, the total paid will be less than the original amount owed.”
With a partial payment plan, taxpayers pay only what their financial documents prove they are able to afford monthly. Under the agreement, taxpayers have reoccurring payments that continue until the collections statute ceases, which protects them from any IRS collection actions.
The IRS requires a taxpayer to disclose all financial records when applying for the program, including equity in assets, and their ability to receive lines of credit. Once a full review has been completed including a verification of income sources, and accounting for necessary expenses, the IRS will make a determination to approve a taxpayer in to the program and what the monthly payment will be.
“The IRS only grants approval for a Partial Payment Installment Agreement when a taxpayer is unable to pay their entire debt, but is able to pay something towards their liability. It is essential for a taxpayer to consult with a tax professional before seeking this agreement because once their financial documents are revealed to the IRS, they now have all the information they need to require a maximum monthly payment, force the sale of assets, or consolidation of expenses,” explains Sarah.
“At Tax Defense Network, it is our job to fight for as many expenses, and as low of a payment as possible to ensure that we are providing the best resolution for our client’s circumstances, and we would never apply for a program our client did not qualify for.”
Tax Defense Network is a national tax relief company with licensed tax professionals who have over 35 years of combined tax debt experience. Tax Defense Network has resolved over $120 million in client tax debts, including small-business and individual tax issues, while maintaining an A+ rating with the Better Business Bureau.