You may be aware of the details of a traditional IRS Installment Agreement. But do you know anything about a Partial Payment Installment Agreement (PPIA). This is a type of IRS payment plan (or really settlement) that offers many benefits if used correctly. Not everybody who owes money will qualify for a partial payment agreement, but some people will qualify and find that this is the perfect way to climb out of debt without struggling even further.
The details of a Partial Payment Installment Agreement are as follows: this allows you to enter into an agreement with the IRS in which only a portion of your debt is paid over a series of monthly payments over many years (varies). As long as you are paying what you agreed to the IRS will not attempt to take collection actions that could end up causing more harm. Of course, there is a catch. Every two years the IRS will want more information from you to determine if you can now pay more money or if the agreement can be terminated. So while you may get away with paying less money per month right now, do not expect this to last forever. The IRS will be on the lookout to see if they can make a change to your PPIA.
To see if you qualify for a partial payment installment agreement you must first fill out Form 9465. You can benefit by hiring a tax professional who can help you complete the form, and lend advice on what you should list as your monthly payment amount.
You must also file Form 433-A which is meant to show the IRS that you do not have enough money to pay what you owe. They want to make sure you qualify for a partial payment installment agreement, and this form is the perfect way of doing just that.
Finally, you need to attach a letter stating that you are requesting a partial payment installment agreement. You may want to include basic information on why you are doing this.
It can be hard to receive this type of IRS payment plan or Installment Agreement. That being said, if you feel that you have a good case you need to follow the proper steps so you can find out for sure. The best way to save time and money in the process to see if you qualify is to contact a professional tax relief and take advantage of any free tax consultation offered.
The details of a Partial Payment Installment Agreement are as follows: this allows you to enter into an agreement with the IRS in which only a portion of your debt is paid over a series of monthly payments over many years (varies). As long as you are paying what you agreed to the IRS will not attempt to take collection actions that could end up causing more harm. Of course, there is a catch. Every two years the IRS will want more information from you to determine if you can now pay more money or if the agreement can be terminated. So while you may get away with paying less money per month right now, do not expect this to last forever. The IRS will be on the lookout to see if they can make a change to your PPIA.
To see if you qualify for a partial payment installment agreement you must first fill out Form 9465. You can benefit by hiring a tax professional who can help you complete the form, and lend advice on what you should list as your monthly payment amount.
You must also file Form 433-A which is meant to show the IRS that you do not have enough money to pay what you owe. They want to make sure you qualify for a partial payment installment agreement, and this form is the perfect way of doing just that.
Finally, you need to attach a letter stating that you are requesting a partial payment installment agreement. You may want to include basic information on why you are doing this.
It can be hard to receive this type of IRS payment plan or Installment Agreement. That being said, if you feel that you have a good case you need to follow the proper steps so you can find out for sure. The best way to save time and money in the process to see if you qualify is to contact a professional tax relief and take advantage of any free tax consultation offered.