Partial Payment Installment Agreement
This type of installment agreement is available to taxpayers who cannot pay the full amount of tax liability but have the ability to portion of it, same as in Offer in Compromise.
There are two types of Partial Payment Installment Agreement (PPIA):
a. Where the taxpayer has no assets and/or no equity in assets
b. Where the taxpayer has asset/equity but is unable to use the equity or cannot sell the asset because the asset is not marketable or is an income producing asset
The IRS analyzes the Collection of Information Statement to verify the taxpayers ability to pay. IRS also requires a review of each PPIA every two years where it will revisit the taxpayer's current financial condition and review taxpayers ability to pay. As in a regular installment agreement, financial information analysis is critical in a Partial Payment Installment agreement. Certain conditions have to be met in order for PPIA to be granted.
Call us now at (602) 904-6535 or schedule a free initial consultation online to see if you qualify for the above payment plan.