IRS Partial Payment Installment Agreement

If you owe the IRS a large amount in unpaid back taxes but cannot afford to pay off your debt even with a regular payment plan, there are still options open to you. Partial payment installment agreements (PPIA) are like a combination of a payment plan and an offer in compromise. They allow taxpayers with outstanding debt to pay regular installments at regular intervals—even if those payments do not pay off the full balance.

Because of the ten year statute of limitations on collecting tax liabilities, the IRS only has a ten-year period from the point of recording a balance as owed to collect that balance’s related payments and penalties. Since an offer in compromise is not an option for every taxpayer, PPIA offers those who cannot afford to pay the entirety of their balance a steady way to manage their tax debt without incurring a lien or putting themselves in a position of financial hardship.

If you think that your case might qualify for a PPIA, contact us today. Our tax experts will happily review your case in a free consultation and help you decide on the best tax relief options for you.

Charlotte R.
Disabled University Employee
Waterford, Michigan
Offer in Compromise & Currently Non-Collectible Status
6 Months
The taxpayer owed the IRS from tax debts 2004-2006 from sale of real estate totaling close to $184,500. Settlement offer was accepted for only $100. With a savings of $184,400, she paid close to 0% of the original amount owed.
Owed: $184,500 Settled: $100

Mark K.
Self-Employed Chiropractor
White Lake, MI
Installment Agreement & Offer in Compromise
7 Months
Mark came to Franskoviak & Company owing the IRS for past due payroll taxes for 2007, 2008 and 2009; a total amount owing of about $28,114. With the help of the Franskoviak team of tax specialists, we negotiated an Offer in Compromise and made a settlement with the IRS for a total of $6,096. Under the terms of the settlement, Mark will make monthly payments of $254, until the balance is paid in full. We saved Mark a total of $22,018; he paid 22% of the original amount owed.
After talking with Mark about his services with the Franskoviak & Company team, he stated “I was very pleased with the money you saved me, especially on the business side. If I hear of anyone in the area with tax problems, I’ll definitely give them your number.”
Owed: $28,114 Settled: $6,096

Robert & Arlene Z.
Promotions Advertiser
Oakland Twp., MI
Partial Payment Installment Agreement
Robert & Arlene Z., from Oakland Twp., MI, were in severe tax trouble. They had defaulted on a promised Offer in Compromise and the IRS revenue officer was threatening severe collection actions, and demanding large sums of money. The total tax debt was about $800,000. Our team of tax specialists worked closely with the revenue officer to assure against our client that no levies or seizures would take place, and to back off the IRS. We then negotiated a “Partial Payment Installment Agreement” (PPIA) of $2,050 per month, for approximately 60 months; a savings to the client of over $677,000.
Owed: $800,000 Settled: $123,000

Jimmie B.
Construction Worker
Eastpointe, MI
Partial Payment Installment Agreement
13 Months
Jimmie B., owed $145,477 in back taxes to the IRS for failing to file and pay his 2002 through 2011 income taxes. Jimmie feared of IRS collection actions including asset seizure and levy. Our team of tax specialists immediately went to work and negotiated a Partial Payment Installment Agreement with the IRS, of $333 per month for the statute of limitations, or approximately 120 months. The amount paid back to the IRS after that time will come to a total of $39,960. The Franskoviak team of tax specialists saved Jimmie $105,517; or 72% of the original amount owed.
Owed: $145,477 Settled: $39,960

Russ S.
Sales Consultant
Sterling Heights, MI
Partial Payment Installment Agreement
9 Months
Russell S., a sales consultant from Sterling Heights, owed the IRS over $88,000 in back taxes for the years 2003, 2004, 2005 and 2008. After coming in to meet with Mike for his free consultation, they decided the best option was to apply for a Partial Payment Installment Agreement. A Partial Payment Installment Agreement, or PPIA, is where the taxpayer is on a payment plan that results in paying less than the total balance owing to the IRS. The Franskoviak team of tax specialists went to work and set up a PPIA of $1,057 per month until the statute expires. Once that statute expires, Russ will have paid a total of $28,684; saving almost $60,000; a savings of 68% of the original amount owing!
After asking Russ about his experience with the Franskoviak team, he replied “Franskoviak & Company did everything they promised to do and I was very pleased with the results.”
Owed: $88,000 Settled: $28,684

Robert T.
Retired Police Officer
Warren, MI
Currently Non-Collectible Status
5 Months
Robert T., from Warren, MI, had a tax debt with the IRS from 2009 back taxes; amounting to a total amount of $36,112 owing. Being a retired police officer and with his wife unemployed, Robert was at a standstill, and had no idea what he could possibly do to get rid of this tax debt. Especially, because the IRS was demanding a payment agreement, that would take him 60 years to pay off his debt in full. After meeting with Mike, and discussing his options, the decision was clear; Robert would qualify for Currently Non-Collectible (CNC) Status. The Franskoviak team of tax specialists went right to work and negotiated with the IRS. Within 5 months of hiring Franskoviak & Company, P.C., Robert was put into CNC status, and no longer has to worry about his tax problems.
After asking Robert about his experience with Franskoviak & Company he replied “I was very satisfied from the first communication. I am happy with this large debt being put into uncollectible status and I don’t have to worry about future levies on my bank account or other collection action.”
Owed: $36,112 Settled: Currently Non-Collectible Status

 

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