What is a Partial Pay Installment Agreement (PPIA)?
Dealing with major tax debt with the IRS can seem daunting, especially if you owe thousands of dollars to the federal agency. But fortunately, the IRS does offer some solutions to ease the burden. One of those options is a PPIA – a Partial Pay Installment Agreement.
All About Partial Pay Installment Agreements
A Partial Pay Installment Agreement allows taxpayers to settle their tax debt through manageable monthly payments. Instead of ultimately paying the full amount, the IRS accepts a portion of the debt as part of these arrangements.
“An installment agreement that will not full [sic] pay the entire balance before the CSED is called a Partial Payment Installment Agreement (PPIA),” the agency notes on its website.
“If you propose a payment amount that will not full pay [sic] by the CSED, you will be required to complete a financial statement and provide supporting financial information for a PPIA.”
The CSED is the Collection Statute Expiration Date. Basically, if you can’t pay the balance in the remaining time the IRS has given for you to pay it and for the agency to collect it, you can make an agreement to pay in installments until the debt is paid off or the collection statute expires.
How to Get a PPIA
The IRS will only agree to an installment agreement if you already filed all your tax returns, so if you haven’t done that yet, that’s the first step toward applying for and hopefully receiving a PPIA.
According to the IRS, “You will be required to complete a financial statement and provide supporting financial information for a PPIA.” A Notice of Federal Tax Lien determination is also required.
You can apply by mail using IRS Form 9465 and note that you want to be considered for a PPIA. Or, you could potentially apply by phone as well.
However, before doing any of that, we strongly suggest you work with tax attorneys like the ones at Dayes Law Firm to determine the best course of action when dealing with your tax debt. There are different forms of tax relief available, and a PPIA may not actually be the best option for you.
Call Dayes Law Firm
The team of tax professionals at Dayes Law Firm is top-notch and knows how to deal with more complicated tax resolution and compliance matters. They can walk you through what your personal best options may be when it comes to tax relief after reviewing your unique circumstances with you.
Dates Law Firm provides free tax relief consultations to individuals and businesses nationwide, and we’d be more than happy to assist you. We can discuss Partial Pay Installment Agreements with you, alongside any number of other types of payment plans the IRS offers.
Call 866-875-1005 to contact a member of our experienced team for tax relief assistance today!
