A partial payment installment agreement (PPIA) allows you to make monthly payments toward your tax debt when you can't pay the full amount by the expiration date (typically 10 years after the IRS assesses the debt). To apply for a PPIA, you'll have to submit a comprehensive overview of your financial situation to the IRS.
Required Forms to Apply for a PPIA from the IRS
You'll have to fill out a specific IRS form if you want your PPIA request to be considered:
- Form 433-A: The Collection Information Statement for Wage Earners and Self-Employed Individuals form, Form 433-A, collects detailed information about your personal finances, including income, expenses, assets, and liabilities.
- Form 433-B: If you own a business, you'll need to complete Form 433-B, known as Collection Information Statement for Businesses. It gathers information about your business's financial status, including assets, liabilities, income, and expenses.
- Form 9465: Form 9465 is the Installment Agreement Request form. You need it to formally request a payment plan with the IRS.
Other Documents You Need to Request a PPIA
In addition to the IRS forms mentioned above, you'll need to provide supporting documents to verify your financial information:
- Proof of Income: Recent pay stubs, profit and loss statements, or other documentation showing your current income
- Bank Statements: Statements from all your bank accounts for the past three months
- Monthly Expenses: Documentation of recurring expenses, such as rent or mortgage payments, utilities, insurance, and other necessary living expenses
- Asset Information: Details about your assets, including real estate, vehicles, investments, and any other valuable property
- Proof of Payments: Receipts or statements showing payments made toward debts or other obligations
It's crucial to ensure all information is accurate and complete, as the IRS uses this data to determine your eligibility for a PPIA and to establish the terms of your agreement. Incomplete or inaccurate information can delay the process or result in denial of your request.
Gather Your PPIA Documents with Help from a Tax Attorney
A reliable tax attorney can help ensure all of your PPIA documentation is accurate and up to date. Our team at Gabaie & Associates, LLC can review your entire PPIA dossier and manage the request for you so that you can be confident the IRS has the right information. For a free consultation, call us at (410) 358-1500 or send us your info via our contact form.
