Partial Pay Installment Agreement (PPIA)

Definition

A type of IRS payment plan where the monthly payment amount is set below what would be needed to fully pay off the tax debt before the collection statute expires, resulting in a portion of the balance never being collected. It is used when a taxpayer cannot afford full repayment but does not qualify for an Offer in Compromise, and the IRS periodically reviews the taxpayer's financial situation during the agreement.