What is a Partial Payment Installment Agreement?

What is a Partial Payment Installment Agreement?

A Partial Payment Installment Agreement is nothing more than a payment plan. If you fall behind on your taxes, one of the options for getting back into compliance with the IRS is to enter into one of these payment plans, allowing you to pay your debt in monthly installments rather than in a single lump sum.

The statute of limitations (SOL) prohibits the IRS (Internal Revenue Service) from attempting to collect on a given tax debt indefinitely, regardless of your ability to pay. Some taxpayers are unable to fully pay off their tax debt before the collections statute expires which is typically ten  years from the date of your tax assessment.

The Internal Revenue Service recognizes that some payment is better than no payment, so they encourage taxpayers to pay as much as they are able until the collection date has expired. The agreement that specifies the terms of this partial payment plan is called a Partial Payment Installment Agreement, or a PPIA or what can be simply thought of as a payment plan over time to the IRS.

If you have tax debt or questions about resolving your tax debt, call my office for a free case evaluation.  Being proactive about your tax debt and coming into compliance with the IRS is a lot better than running away or not doing anything about it.  It is scary and the IRS is a very formidable opponent, but they will work with you in most cases.  Submit your information on the right hand side of this page or shoot me an email at [email protected]  Thanks for dropping by.

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