Partial Payment Installment Plan

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Another common payment plan the IRS offers is called the Partial Payment Installment Agreement, PPIA for short. If a taxpayer cannot full pay the tax debt they owe to the IRS within the date of the Collection Statue Expiration Date or CSED, a partial payment plan could be an option.

Getting approved for these types of payment plans can be a bit tricky. You will be required to fill out a 433 A or B collection financial statement.

If you do have any equity in such assets like real estate, savings and or retirement funds. Be prepared for the IRS to ask you to liquidate these assets first before approving you for the any kind of a payment plan. Why is this? The goal of the service (IRS) is to have taxpayers full pay their tax liability as soon as possible. If some of your assets could pay down some or most of your tax debt, this is an option they may ask of you. However, complete utilization of equity is not always required as a condition of a PPIA approval.

If you have been garnished multiple times on a continuous basis you should ask about the partial payment plan option. Continuous wage levies or CWL should not be used in lieu of consideration of other payment plan options. Give us a call / text to go over in more detail how these specific payment plans work. Tip: You will need to know what your CSED dates are. 904-274-9503 (call/text) my office.

If full payment cannot be achieved by the Collection Statute Expiration Date (CSED), and taxpayers have some ability to pay, the Service (IRS) can enter into Partial Payment Installment Agreements (PPIAs). The American Jobs Creation Act of 2004 amended IRC § 6159 to provide this authority.

Source IRS.gov