Partial Pay Installment Agreement


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Partial Pay Installment Agreement

A Partial Pay Installment Agreement (PPIA) is an installment agreement that you pay over time. It’s different from other installment agreements because you don’t pay the full amount of the tax debt owed to have your tax liabilities eliminated. Like an OIC, it’s a settlement with the IRS where you pay less than the full amount due while eliminating your tax liability. There are two important differences between a PPIA and an OIC:

  • The IRS will accept or deny a PPIA much quicker than an OIC.
  • There isn’t as much financial information required for a PPIA.

PPIAs are usually reserved for taxpayers who have little time left before the Collection Statute Expiration Date (CSED). This is the date 10 years after the IRS assessed the taxes against you. The assessment date could be the date you filed your tax return or the date the IRS files a Substitute for Return (SFR) for you. Or, if the IRS audits you, they may assess more taxes.

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