Partial Pay Installment Agreement

Tax Resolution Services in San Jose, CA

Usually when an installment agreement is made, the IRS seeks a monthly payment plan that will allow the taxpayer to pay the full amount owed within a specific range of time but before the statute of limitations which is 10 years from the date the return was filed or the assessment was closed. However, if the taxpayer’s ability to pay is not within the payment amount that would pay off the tax liability, a partial pay installment agreement is set up regardless of what the IRS wants. The partial pay installment agreement is a good indicator that the Taxpayer may qualify for the Offer in Compromise.