You have a huge tax bill to pay, so you submitted a request for a partial payment installment agreement (PPIA), hoping to lighten the burden a bit. But the IRS has denied your PPIA application, and now you're feeling more hopeless and confused than ever. Don't worry—even if the IRS rejects your initial PPIA application, you can still take action.
Why Was Your IRS PPIA Application Denied?
Before you take action, you should figure out why the IRS denied your PPIA application. The most common reasons for denial are:
- Discrepancies or missing details in your financial information
- Not meeting PPIA eligibility criteria
- Insufficient proof that paying your tax debt in full would cause financial hardship
- Missing tax returns from previous years
The IRS will send you a denial letter explaining why the application was rejected, so you'll be able to know right away. Still, working with a professional tax attorney can help you dig deeper and pinpoint exactly where you went wrong—and what you can do about it.
What to Do After a PPIA Denial
If your IRS PPIA application has been denied, you have several options depending on the reason your application was rejected. The very first thing you should do, no matter what situation you're in, is to review the denial letter from the IRS to see what went wrong. Then, you can determine your best course of action:
- If there's missing information from your application, gather the additional documentation needed for a PPIA.
- If there are errors in your application, correct the mistakes you may have made and resubmit promptly.
- If you believe the IRS is mistaken, submit an appeal. You'll need to fill out and send Form 9423, Collection Appeal Request, within 30 days of the denial.
- If your appeal doesn't go through, or you choose not to appeal, you can consider other payment plan options, such as an Offer in Compromise or a full payment installment agreement.
Get Professional Help with Your IRS PPIA Denial
IRS procedures can be difficult to navigate. If you need help submitting your PPIA or appealing a denied PPIA, the tax attorneys at Gabaie & Associates, LLC can help. We'll walk you through each step of the process and advise you on the best action to take if your PPIA application has been denied. Call (410) 358-1500 or send us a message via our online contact form.
