Self-Employed Contractor Owes the IRS $38,000; Finds Tax Resolution in 6 Months

How to navigate the complexities of self-employment tax

Updated in April 2023

Tax Relief via Partial Pay Installment Agreement


If you don’t qualify for Currently Not Collectible Status and aren’t able to pay your tax debt in full, you may be able to set up a Partial Payment Installment Agreement with the IRS. With this type of installment agreement, you’ll be allowed to make smaller monthly payments based on your financial situation. This is the solution we used to help an independent contractor resolve $38,000 in tax debt.


Meet Dave, a single father in Wayne County, MI. After 4 years of unfiled tax returns and 2 years of outstanding balances, Dave owed a total of $38,000 to the IRS.


As a self-employed electrician making $3,800 per month in net income, Dave qualified for a Partial Pay Installment Agreement. We were able to help Dave set up a monthly direct debit payment of $150 from his bank account so she could start paying off his balance. Over time, this hardship-based solution will save Dave thousands in IRS tax debt.


This resolution took 6 months to complete from start-to-finish. Because Dave was self-employed, filing his tax returns required more time to gather extra information.

Account Diagnosis

Program Evaluation

Submission & Monitoring

See if you qualify for Partial Pay Installment Agreement