tax debt settlement

How to Demand a Partial Payment Installment Agreement with the IRS The IRS offers several options to taxpayers who can't quickly pay their dues in full.

A partial payment installment agreement (PPIA) is one of the specific options.

Demanding a PPIA with the IRS is extra convenient and less time-consuming than requesting a tax debt settlement. However, the process still requires consideration with attention to each detail, and the taxpayer has to know the laws before diving into it.

To qualify for the Partial Payment Installment Agreement with the IRS, there are few steps listed down that the taxpayers need to go through first.

STEP 1: Completing Form 9465 The first step towards getting the PPIA approved is Filling out Form 9465, which is the Installment Agreement Application. The tax expert can help the taxpayer account for a fair and agreeable monthly payment amount to offer to the IRS. It's up to them to show the IRS how much you can manage to pay, and this form helps do that.

The IRS won't evaluate the taxpayer's request then tell them how much they are required to pay each month. The amount is open to consultation.

In addition to the taxpayer owes' leading tax debt balance, they will also want to understand the remaining statute of limitation that the IRS holds on getting that debt with the objective accumulation potential over that left legal period. It's a somewhat complex equalization, but an accomplished tax professional can help you understand it completely.

Step 2: Completing Form 433-A The next logical step is filling out Form 433-A, which is the Collection Information Statement, and it is utilized for both partial payment installment agreements and

OIC. Both of these programs require the same basic information, so this is an extraordinary chance to decide which tax debt plan is best for the taxpayer.

It is crucial to assign three months of backup paperwork for all revenue and costs that are listed on this application and register it mutually with Form 9465.

Step 3: Reaching Out to the IRS After filling out forms 9465 and Form 433-A, it's time to compose a letter to the IRS addressing your call for a partial payment installment agreement.

The IRS is likely to respond to the request within the time-frame of 30 days. The IRS might also demand further information about any assets that the taxpayer owns that can be liquidated to repay the tax debt. The IRS might also require the taxpayer to borrow against any property you have in assets if this is reasonable.

STEP 4: Making the Payments The last step is to make your installments each and every month if the IRS permits your application for a PPIA. You can pay by deposition, money order, credit card, EFTPS, IRS Direct Pay, or by electronic withdrawal from your checking statement.

It's usually most reliable to use Direct Payor to pay by electronic withdrawal.

Checks posted to the IRS Service Center is likely to get missed by the IRS.