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Partial Pay Installment Agreements

OVERVIEW: This program is for individuals that have very little disposable income and unable to pay the minimum payment amounts under the other IRS programs and/or unable to pay the total amount due in full. It is called a partial pay installment agreement because typically some of the tax will expire and be no longer collective while in this repayment program. While the account is in the payment plan, the IRS will generally not engage in collection activity (for example, they will not levy assets and income). However, the IRS will still charge interest and penalties to the account, and may keep refunds and apply them to the past due tax debt. To place the taxpayer in a partial pay installment agreement, the IRS will ask for financial information with supporting documentation. The taxpayer will have to show that after paying necessary living expenses like rent, utilities, car payment, health insurance, current taxes, etc. they only have a certain amount of disposable income to the pay the IRS, even though it will NOT full pay the tax. In addition, the IRS will only look at necessary expenses and will typically not count expenses that are substantially over the IRS Collection Financial Standards. These amounts can be found on the IRS website at Furthermore, the IRS will generally not allow voluntary unnecessary payments such as private school tuition or college tuition for adult children. Lastly, the IRS usually will not count payments for unsecured debts like credit cards, medical bills, and personal loans. However, there are some exceptions to these general rules, which is why it is very important to speak with a qualified and experienced tax attorney. 

Requirements: All returns must be filed and any required estimated tax payments made if applicable.

LIENS: Tax liens will be filed under this program.

PROS: Taxpayer will still owe the debt but will have a smaller monthly payment based on ability to pay, which could help taxpayer stay in good standing with the IRS while the statute is running. Partial Pay Installment Agreements are a great option for taxpayers that have very little disposable income, cannot afford a regular IRS installment agreement plan, and whose tax liability may be close to expiration. 

CONS: Tax liens will be filed. In addition, the IRS can ask for updated financials approximately every 2 years, which means the taxpayer will have to provide financial information every couple of years. If at a later date, the taxpayer is making substantially more money (approximately 25% more than they were making at the time they were placed into the partial pay agreement), the IRS could ask for the taxpayers to start making payments based on the taxpayer’s new ability to pay. Lastly, if the taxpayer’s financial condition changes and they are required to start making larger monthly payments, the amount of the debt may be larger due to the interest and penalties that accrued while the small payment plan was in place.

If you would like more information on Partial Pay Installment Agreements please contact us today at 404-551-5838 for a free one hour consultation with Alyssa Maloof Whatley, Atlanta Tax and Bankruptcy Lawyer. 

I run a CPA firm and Alyssa has helped my clients that have IRS issues. Her expertise ends up giving the clients more favorable tax liability positions than they had before. She is enjoyable to work with and communicates clearly and to the point. I have learned a lot from her due to her immense tax resolution knowledge.
Alyssa Whatley helped us with a major tax issue that seemed impossible and she seemed to do it with ease. She helped us through a very difficult and hard time. Alyssa's work ethics and performance set a very high standard that we value. She works with strong intention and honesty. She represented us so well and gave us honest answers. She was careful and this made us know that she is trustworthy. We knew that she really wanted to help us and that is her heart for why she does what she does. Alyssa has an endearing confidence that gave us assurance and a calm knowing that she is very knowledgable and good at what she does! Alyssa always responded promptly to us and kept us very informed. She is definitely at the top of her game in her field! Thankful to have had her representing us! Lindy
Alyssa immediately impressed me with her competence. That was most important to me. How well will my attorney do their job for me? Alyssa knocked it out of the park for me. Her understanding of our overly complex Tax laws never ceased to amaze me. Alyssa seemed to know every trick in the book to achieve the best results. Alyssa analyzed my state of affairs and delivered better results than I had hoped for. Before meeting Alyssa, I was wary about whether my attorney would have _my_ best interest at heart? I did not expect a cheerful attorney; What a difference a smile makes when you're going through troubled waters. Alyssa deserves my highest recommendation. I just wish I could express my appreciation better. Job well done, Alyssa! Thank you! Anonymous
I contacted Alyssa after I was wrongfully imprisoned due to a clerical error by Fulton Co. Alyssa listened with empathy to my entire story and took all of the correct steps in handling my case. Alyssa updated me frequently on my case so that I could rest assure it was in the right hands. Alyssa was able to get my case dropped and my money returned very quickly. Mrs. Whatley came highly recommended to me and I see why. Alyssa's professionalism, experience, compassion, and positive attitude was exactly what I needed during this time of uncertainty. Kaitlin
Mrs.Whatley handled a case for us with the IRS. We had tax liens after a Chapter 13 bankruptcy and she was able to have them removed promptly. She is extremely knowledgeable about tax law and I'd recommend her to anyone, including my own family and friends. Keith