Unveiled in 2005, the Partial Payment Installment Agreement (PPIA)
is the most recent tax debt reduction plan offered by the Internal
Revenue Service. Commonly referred to as a “hybrid” plan, this tax
debt reduction program takes into consideration the remaining amount
of time left on a debt due to the Statute of Limitations and the
elements used to calculate an Installment Agreement amount through a
433-F Financial Statement.
The results that can be achieved through this program can be as
dramatic as a “pennies on the dollar” Offer in Compromise
settlement, all without the voluminous amount of information and
detail required in an OIC Application. As the name implies, this
program takes into consideration the remaining amount of time for
the IRS to collect on a back tax debt and allows the taxpayer to pay
a limited monthly amount during the remaining period of the statute.
A simple example is a tax debt from 1999 in the amount of $100,000.
Provided that the tax return was filed on-time on or before April
15, 2000 and there was no bankruptcy or Offer in Compromise filing,
the statutory period to collect on this debt expires on April 15,
2010. When the 433-F Financial Statement is prepared for the
taxpayer it is determined that he has discretionary income in the
amount of $500 per month to pay the IRS. Since the debt is quite old
there remains only 6 months (as of November 1, 2009) to collect on
the debt. In this circumstance, the IRS has the ability to accept a
payment of $500 for the remaining period (6 months) as full payment
on the original debt of $100,000. thus allowing the taxpayer to
settle his debt for $3,000 through the Partial Payment Installment
Agreement Program.
Don’t hesitate, contact the professionals at United Tax Group,
877-829-3703 and see if you qualify!
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