Case Studies

Partial Pay IRS Installment Agreement Will Pay Off Couple’s Tax Debt at 14 Cents on the Dollar


Tucson tax attorney, Sheldon Lazarow, represented a Tucson, Arizona couple before the IRS Appeals Division for a past due income tax debt of $88,000 plus accruing interst. The IRS was ready to levy money from the couple's sole- proprietorship business and their various bank accounts.

Attorney Lazarow stopped the IRS levies and presented the couple's case to an IRS Appeals Officer. After lengthy negotiations, Mr. Lazarow was able to get the IRS to agree to a partial pay installment agreement for $200 per month for a period of 5 years (60 months). If the couple pays their monthly payment for the 5 year period they will have paid a total of $12,000 to settle a debt that will be in excess of the original $88,000 because of daily accruing interest added by the IRS. This amounts to paying off the original tax debt at less than 14 cents on the dollar.

The tax debt relief remedy in this case, a partial pay installment agreement, turned out to be a cheaper remedy than an Offer in Compromise for these taxpayers. The reason for this is that the Offer in Compromise remedy takes into account the couple's asset equity when the partial pay installment agreement does not. If they wanted an Offer in Compromise, the amount they would have had to pay would have been much more.

This case is a reminder that all remedies must be thorougly examined in each case to determine which one would be better for the taxpayer involved.

To discuss the possible remedies for your tax problem, contact the Lazarow Law Firm, P.L.C. at 1-520-623-5856 or through their website at