01 The problem
Gary’s debt built up after a large retirement-account withdrawal with insufficient tax withholding. By the time he came to Tax Law Advocates, he was already on a $100/month installment plan, still carrying the full $55,000 balance.
02 The resolution
Our attorneys evaluated every available path. Gary’s income was low, but he held assets, home equity and retirement funds, that other resolution options could have put at risk. To protect those assets, we structured a low-payment Partial-Pay Installment Agreement (PPIA) designed to run out the IRS collection statute of limitations, so the remaining balance falls off automatically.
03 The result
Of the $55,000 total liability, $51,000 will be eliminated once the collection statute expires, without Gary having to touch his home equity or retirement savings.