Partial Payment Installment Agreement Serving The Chicagoland Area & Nationwide

A partial payment installment agreement is when a taxpayer enters into installment agreement with the IRS and makes payments on a monthly basis. However, the amount paid to the IRS will not be enough to pay the outstanding liability in full. Depending on the taxpayer’s ability to pay, the monthly installment agreement payments can be “token” payments as low as $25.00 or $50.00 per month. We refer to a partial payment installment agreement as a “Backwards Offer” because the taxpayer may pay less to the IRS than what he owes, just like an Offer in Compromise. Under a partial payment installment agreement, the IRS may revisit your ability to make larger monthly payments to the IRS, typically after two years. It is also possible that the IRS will allow you to remain on a partial payment installment agreement until the collection statute of limitation expires. If the collection statute of limitation expires before the IRS can collect the full liability, the IRS is no longer legally able to collect the remaining liability from you.