Partial Pay Installment Agreement
- IRS Financial Review
- Prevents Collection Actions
- Ongoing Compliance
- Interest & Penalties Continue
- Periodic IRS Review
Reduce Your IRS Debt with a Partial Payment Plan. Get Expert Help Today!
Partial Payment Installment Agreement
A flexible tax debt solution
A Partial Payment Installment Agreement can be an attractive alternative to an Offer in Compromise. Navigating a PPIA application can be complex, and professional guidance is needed for the best possible outcome.
- Basic Definition
A Partial Pay Installment Agreement is an arrangement you can make with the IRS if you owe taxes but cannot pay them in full. Under a PPIA, you agree to make regular payments toward your tax debt, but these payments will not cover the total amount owed when the collection statute expires. After the statute expires, you need not make any more payments.
- Key Features of PPIA
Lower Payments: The monthly payment amount is based on what you can reasonably afford after accounting for essential living expenses, not the total amount owed. Assessment of Financial Situation: The IRS will review your income, expenses, and asset equity to determine your ability to pay.
- Tax Debt Exceeds Repayment Capacity
This agreement is beneficial if your tax debt is so substantial that you cannot realistically pay it off in full.
- Flexibility
If the garnishment is causing significant financial hardship, you can apply for a temporary suspension. The IRS may release the garnishment if they agree it’s preventing you from meeting basic, reasonable living expenses.
- Benefits of PPIA
Avoiding Collection Actions: Entering into a PPIA can prevent or stop aggressive IRS collection actions, such as levies or garnishments.
- Compliance Requirement
To qualify and maintain a PPIA, you must stay compliant with all filing and payment requirements moving forward.
Key Considerations Before Applying for a Partial Payment Plan
Interest and Penalties
Interest and late-payment penalties continue to accrue onthe unpaid balance.
Review of Financial Situation
The IRS may review your financial situation every two years, which could lead to an adjustment in your payment amount.
Limited Time Frame
The agreement lasts until the collection statute expires, generally ten years from the Process of Applying for PPIA Application: You apply for a PPIA using IRS Form 433-F (Collection Information Statement).
Proposal of Payment Amount
You propose a monthly payment based on your financial situation.
IRS Evaluation
Interest and late-payment penalties continue to accrue onthe unpaid balance.
Documentation
Providing accurate and comprehensive financial information to the IRS is crucial.
Future Tax Compliance
Stay current on all future tax obligations; failing to do socan lead to the cancellation of the agreement.
Conclusion
A Partial Pay Installment Agreement offers manageable payments for tax debt while preventing IRS collection actions. I’m here to guide you through the process.
Schedule a Consultation
Reduce Your IRS Debt with a Partial Payment Plan – Get Expert Help Today!
Call Me for a Complimentary Evaluation of Your Tax Situation
