Misclassified as 1099, Saved About $27,500 With a $50/Month PPIA

Individual Taxpayer Partial-pay installment (PPIA) Individuals Alicia G, KS

Alicia’s employer paid her as a 1099 contractor when she was actually an employee — and never told her taxes weren’t coming out of her paycheck. A $50/month partial-pay installment plan will save her about $27,500 of a $33,456.49 liability.

$27,500 With a $50/Month PPIA

01 The problem

This wasn’t a mistake Alicia made. Her employer classified her as a 1099 contractor instead of an employee and never disclosed that taxes weren’t being withheld from her pay. By the time the misclassification came to light, the liability had climbed to $33,456.49.

02 The resolution

We negotiated a Partial-Pay Installment Agreement at just $50 per month. The savings here come from two things working together: the low monthly payment itself, and the collection statute of limitations running in the background, as time passes, the untouched portion of the balance ages off.

03 The result

Roughly $27,500 of her original balance will never have to be paid.

Disclaimer: Prior case results do not guarantee or predict a similar outcome in any future tax matter. Every taxpayer’s financial condition, income, allowable expenses, and IRS qualification criteria vary based on statutory requirements and individual case merits. Case documentation on file with Tax Law Advocates.

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