An IRS allows what we call the younger brother to the offer in compromise, the partial payment installment agreement (PPIA) is a formal arrangement with the Internal Revenue Service to make monthly payments towards the tax debt. This agreement does not fully pay off the debt by the end of the collection statute expiration date. Once the IRS’s collection period expires, you are no longer required to make these monthly payments. Learning the exact Statute Collection date is important not the assessment date and 911 Tax Relief will verify and confirm CSED dates via a Transcript Forensic analysis.
If you have a significant amount of back taxes, a PPIA can be an appealing option. It allows you to pay off your tax debt in manageable installments and ends when the debt expires, resulting in you paying less than the full amount owed to the IRS. Essentially, it functions as a settlement for less than the total debt sort of like the Offer In Compromise it can save the taxpayer thousands of dollars.
With a standard Installment Agreement, the IRS provides an option for taxpayers to make monthly payments over a course of 72 moths to settle their tax debt, however the IRS will consider a partial payment installment agreement to recover as much as possible. The Collection Statute Expiration Date is typically 10 years from the assessment of the tax or filing of the tax return. For example, if you have allowed the debt to accumulate for four years, the IRS has six years remaining to collect. Under a partial payment installment agreement, you would pay $100 per month for six years, totaling $7200. Once the CSED is reached, any remaining balance is forgiven, and no further payment is required. The IRS will also halt collection actions such as levies and seizures as long as you stay current on your payments. The IRS may agree to this arrangement if it is evident that full repayment before the Collection Statue Expiration Date deadline would cause significant financial hardship, opting to recover a portion of the debt rather than nothing at all.
911 Tax Relief will prepare all documents needed to be eligible for PPIA to satisfy the specific criteria outlined in the Internal Revenue Manual:
– Ability to pay the IRS, but inability to pay in full
– Completion of a qualifying interview
– Filing and payment of tax returns for previous years
– Owning over $10,000 in tax debts, interests, and penalties
– No prior acceptance of an Offer in Compromise
– Submission of Form 433 (Collection Information Statement)
– Submission of Form 9645 (IRS Installment Agreement Request) or application for Installment Agreement online
– Lack of marketable assets or inability to provide equity in assets due to financial hardship, or insufficient asset value to secure a loan
– Inability to cover tax debt through the sale of property or business assets or Fianacial products.
911 Tax Relief and the Client will continue to communicate via app, email, or phone because the IRS may conduct periodic reviews of your financial situation, potentially every 24 months, to ensure that you still qualify for a PPIA. Additionally, if your reported income exceeds a certain threshold, the IRS may automatically schedule a review. If it is determined that you no longer meet the requirements for a PPIA, the IRS will either establish a traditional installment agreement or demand immediate payment of the entire balance.
At 911 Tax Relief Law, our primary focus is on delivering exceptional service to our clients and providing effective solutions for their unpaid or disputed IRS or State tax liabilities.
