Partial Payment Installment Agreement (PPIA)

The Partial Payment Installment Agreement is an Installment Agreement (monthly payment arrangement) whose payments are insufficient to pay off the back taxes before the expiration of the debt.

This tax debt Resolution was created out of the elimination of an IRS procedure.  That is, the IRS historically required that proposed Installment Agreements resolve the outstanding back taxes within the Collections Statute Expiration Date (CSED, a Statute of Limitations for collections).  If the proposed Installment Agreement failed to do so, the IRS Collections personnel would require an extension of the CSED to set up the agreement. This produced some very long, very small-dollar Installment Agreements.

In 2005, the IRS eliminated the need for the CSED extension in these cases, and thereby introduced the PPIA.  The benefits of the PPIA are the savings, the abatement of collections and the relatively simple negotiation process.  The drawbacks are the monthly payment, the persistence of the lien, and the regular review of financials.