PARTIAL PAYMENT INSTALLMENT AGREEMENTS
A Partial Payment Installment Agreement is a great alternative to an Offer in Compromise. This program is still based on your current financial situation and can still save you a ton of money, in some cases it can actually provide a larger savings than an OIC. However, the PPIA does take longer to complete than a typical OIC because you will make monthly payments until the statute of limitations expires on the balances owed. May taxpayers find that this program makes better sense financially for them because they can afford to make minimal monthly payments This is only a feasible option if you can prove financial hardship for tax debt that is unresolved and any assets you have, you are willing to use to reduce the amount you owe.
Let's Look at an example of how this program works;
- You owe $100,000 in taxes from seven (7) years ago or so
- The Collection Statute Of Limitations expires in 34 months
- We can that you can only afford to make monthly payments of $200 per month
- $200 X34 = $6,800 which is the total amount you will pay
- You SAVE $93,200 over the next 34 months
Give us a call to have one of our Enrolled Agents get started on putting your Road Map to
Resolution together to see if this is a viable option for your situation.