One technique that we consider for clients that may only qualify for a monthly payment plan agreement is to enter into a Partial Payment Plan (still a monthly payment plan) which will stop enforcement actions but the amount paid during IRS’ time-limited collection life will be “less” than the total tax liability. Normally, the IRS will require a payment plan that settles the total tax debt and all penalties and interest within the IRS’ collection period to collect on the tax debt. However, a Partial Payment Plan is another tool our professionals at Tax Law Center consider to best lower tax debt paid thereby showing you why we truly are America’s Premier Tax Relief Firm. A Partial Payment Plan is similar to a settlement in that a taxpayer demonstrates that they can only pay a portion of the tax debt through payments and will make those payments until either until IRS re-reviews case and it shows taxpayer can afford to increase to pay more or pay taxes off or until the IRS time to collect falls off, whichever is earlier. If a bankruptcy or offer in compromise are not viable options and taxpayer can’t pay tax debt in full right now, a Partial Payment Plan is great to consider.
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