How is a PPIA different from a regular installment agreement?

A standard installment agreement requires payments large enough to fully pay the balance before the Collection Statute Expiration Date (10 years). A PPIA allows monthly payments based on your actual ability to pay — even if those payments will not cover the full balance by the CSED. Any remaining balance after the CSED expires becomes legally uncollectible. A PPIA requires full financial disclosure (Form 433-A or 433-F) and is reviewed by the IRS every two years.

Does the IRS file a tax lien with a PPIA?

Yes. The IRS typically files a Notice of Federal Tax Lien as a condition of a Partial Payment Installment Agreement. Because the agreement does not fully pay the debt, the IRS needs to protect its interest in your assets via the public lien record. The lien is released when the debt is paid or when the collection statute expires.

What happens at the two-year review of a PPIA?

The IRS reviews your financial situation every two years while a PPIA is in effect. If your income has increased or your expenses have decreased, the IRS may require higher monthly payments. If your financial situation has worsened, you may qualify for lower payments or a status change to Currently Not Collectible. Maintaining accurate and current financial records is important for these reviews.

What is a Partial Payment Installment Agreement (PPIA)?