The Tax Times: IRS To Review Partial Payment Installment Agreement

Monday, June 17, 2013

IRS To Review Partial Payment Installment Agreement

It is not a secret that the two-year financial reviews the IRS is supposed to conduct on taxpayers who
are in an partial payment agreement (PPIA) haven't been happening.

Well, the Treasury Inspector General learned about this and has brought it to the attention of the IRS. The IRS vows it will now be investigating PPIA debtors more vigorously.

So for taxpayers in a PPIA, this means more two-year reviews, and a more thorough review of financials and the greater chance that the IRS will attempt to collect more from taxpayers who owe money to the IRS.

This should have an impact on the tax resolution industry and bankruptcy attorneys, as enhanced IRS investigations should drive taxpayers to seek protection.

There is no doubt the an IRS partial payment installment agreement (PPIA) can be an awesome IRS tax debt settlement tool. For the taxpayer, they can pay to the IRS what they can afford each month after reasonable living expenses. Meanwhile, the each month, the IRS tax debt gets close to extinction, thanks to the statute of limitations on IRS tax debt.

If you have a PPIA that was agreed to years ago, no may be a good time to review your other IRS tax debt settlement options. In particular:

Enough time may have elapsed on any personal tax debts to discharge with a Chapter 7 bankruptcy. Chapter 7 bankruptcy can completed wipe out your debt. Be sure to talk to a local tax bankruptcy expert in your area.
Or, it may be time to consider an Offer in Compromise. It is our experience that the Offer in Compromise units have been accepting Offers they would not have back in 2009. Our suspected reason: We don’t think the IRS even believes the economy will rebound any time soon. The IRS is agreeing to settle for less because of practical concerns. The deal you may offer could be more than they expect to ever collect from you.