How does the IRS Partial Payment Installment Agreement (PPIA) work?
A Partial Payment Installment Agreement (PPIA) refers to a type of payment plan with the IRS in which you can pay off part of the taxes you owe via monthly payments until your tax liability has expired. With a PPIA, you can pay off your tax balance for less than what you owe and avoid making a large lump sum payment.

A PPIA can also prevent further collection action from the IRS, such as seizures or levies.

Here’s a secret the IRS doesn’t want you to know.
The IRS only has a certain amount of time to collect on your tax balance after you file your tax return. Once the deadline expires, your tax balance is forgiven. Much like an Offer in Compromise (OIC), a PPIA has the potential for large tax savings. The monthly payment you pay will be determined by the amount you owe the IRS and the amount of disposable income you make every month.

How does a PPIA compare to an IRS Installment Agreement?
A standard Installment Agreement involves making minimum monthly payments that allow you to pay off your tax bill within six years. For example, if you owe $18,000, the IRS will expect a monthly payment of at least $250. However, in some cases, the IRS will allow more or less time for paying off a standard Installment Agreement.

If you cannot afford to make the payment of a standard Installment Agreement, you may be eligible to make smaller payments with a PPIA. With smaller payments, it will take more time to pay off your total tax liability. As a result, your tax bill may not be paid off in full before it expires. This means a PPIA allows you to take smaller, affordable payments, and permits part of your tax liability to expire without being paid off.

Continuing with the above example, if you owe $18,000 and cannot afford a monthly payment of $250, the IRS may accept a payment arrangement of $100. During the six years that follow, you'll pay $100 each month for a total of $7200. Your remaining tax bill will expire, and you won't owe the IRS anything else. At this point you are released from being in debt to the IRS.

A PPIA sounds too good to be true!
PPIAs do happen, but they are hard to get. The IRS wants the money they believe you owe them, plus all the accumulated penalties and interest that they determine. They will use wage garnishment. Asset seizure. Asset liens. Take money from your banking and investment accounts. If you have accounts receivable, the IRS will call your clients and have that money diverted to themselves.

But, since you can’t squeeze blood out of a turnip, they will eventually settle for what they can get. Getting what they can is why the PPIA plan exists.

Winning the PPIA option is knowing how to package one and how to negotiate for it. Taxpayers who try to go in alone have a 99.9% failure rate in trying to secure a PPIA. We have a 98% win rate because we know how to present the reasons you should qualify and how to negotiate a PPIA.

A PPIA is a very appealing tax resolution to taxpayers, as you can save thousands of dollars. At TaxProblem Solver, we will communicate and negotiate with the IRS for you and get a PPIA that you can afford.

And we will get things worked out with the IRS and get them off your back once and for all! You can rest assured, we will solve all of this for you.