What Is the IRS Partial Payment Installment Agreement?
What would you get if you combined the Offer in Compromise with the IRS monthly Installment Agreement? You would get the Partial Payment Installment Agreement.The PPIA is a payment plan with the IRS that allows the taxpayer to make a monthly payment that will NOT fully pay the tax debt. Here’s an example.
Of course, there are some stipulations to the PPIA.
Benefits of the PPIA
The positives of the Partial Payment Installment Agreement are obvious. The biggest benefit is the potential to pay the IRS less than the total amount owed. This is what everyone wants, right?
Peace of mind is an often-overlooked benefit to securing an Installment Agreement with the IRS to pay back taxes. The PPIA provides the securityof a formal Agreement with the IRS. You know that the IRS will not –
Your Agreement with the IRS provides this protection for as long as you maintain it.
Stipulations of the PPIA
The Partial Payment Installment Agreement does have a couple of components that you need to be aware of before you ask the IRS for it. I don’t consider them negatives, just components of a helpful program.
Overall, the Partial Payment Installment Agreement is a great solution to your back-tax liability with the IRS. Not everyone qualifies for it, but it is attainable. We’ve helped a lot of people all over the country set them up.
Here’s a quick tip – if you can prove to the IRS that you do not have the ability to pay at least $25/month, you may qualify for Currently Not Collectible status, another great solution to your back-tax liability with the IRS.