What is A Partial Pay Instalment Agreement:
A Partial Pay Instalment Agreement or PPIA is a type of payment plan with the Internal Revenue Service (IRS) that allows you to pay your tax debt in monthly instalments. This payment plan would apply until your debt is either paid off in full or until the tax liability expires, whichever comes first.
When Is A Partial Pay Instalment Agreement The Right Choice:
A Partial Pay Instalment Agreement is a good option if you know you will not be able to pay your full tax debt when it is due.
A PPIA allows you an extended timeframe to pay what you owe, it does however ensure additional fees. You would still be liable for interest and any penalties levied against your account balance.
Determining if you are eligible for a Partial Pay Instalment Agreement depends on whether you meet the criteria set out by the IRS, these include:
- As an individual, you owe $50,000 or less (this includes all penalties and interest)
- As a business, you owe $25,000 or less (including all penalties and interest)
Both of these criteria also require that you have filed all returns correctly and in full.
Working With The Right Team
Enlisting professional help when assessing your tax debt and applying for programs like PPIA can be a good idea, especially if you are finding the information on the IRS website unclear.
Here at TaxFinders, we want to take the confusion out of taxes and get you on the right path forward.
As a trusted name across the USA, we will work with you to create the right plan and handle all of the heavy lifting.
Final Notes
It is important to note that you should not enter into a PPIA unless you are reasonably sure you will be able to make the repayments as set out in your agreement.
Getting the right agreement put together is key – so leave it with us. No matter what size your debt may be, we can put together a Partial Pay Instalment Agreement and get working towards a better future.
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