Is a Partial Payment Installment Agreement all that it’s cracked up to be?

If you owe taxes, penalties, and interest of more than $10,000 and cannot pay them in full, you might consider requesting a Partial Payment Installment Agreement (PPIA) with the Internal Revenue Service.  For your application to be considered by the IRS, you will need to file Form 9465 Installment Agreement Request, Form 433-A or Form 433-B The Collection Information Statement (for an individual and a business, respectively), a letter requesting a Partial Payment Installment Agreement, and three months of documentation substantiating all income and expenses reported on Form 433-A or Form 433-B.  Ordinarily under a Partial Payment Installment Agreement, you would be expected to pay the available equity in your assets as well as your disposable income over the remaining statutory period of collection of your tax assessment (ten years less the intervening period since the date of assessment) in order to satisfy your tax liability.  Your application for a Partial Payment Installment Agreement may be approved even if you have no assets or equity in assets.  Furthermore, it may be granted even if you have equity in assets but do not sell or cannot borrow against those assets.

About William Brighenti

William Brighenti is a Certified Public Accountant, Certified QuickBooks ProAdvisor, and Certified Business Valuation Analyst. Bill began his career in public accounting in 1979. Since then he has worked at various public accounting firms throughout Connecticut. Bill received a Master of Science in Professional Accounting degree from the University of Hartford, after attending the University of Connecticut and Central Connecticut State University for his Bachelor of Arts and Master of Arts degrees. He subsequently attended Purdue University for doctoral studies in Accounting and Quantitative Methods in Business. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals throughout the country as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. In addition to the blog, Accounting and Taxes Simplified, Bill writes a blog, "The Barefoot Accountant", for the Accounting Web, a Sift Media publication.
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