The Administration of Partial Payment Installment Agreements Needs Improvement

The Director, Collection Policy, Small Business/Self-Employed (SB/SE) Division, should revise Currently Not Collectible (CNC) procedures to include a Partial Payment Installment Agreement (PPIA) decision point before determining to place a taxpayer in a CNC status and, in the interim, should remind Collection employees of the requirement to consider and document whether the taxpayer can afford to fully or partially pay their debt before placing the taxpayer’s account in CNC status. The message should remind employees to consider all payment options, including PPIAs, when the taxpayer cannot afford to fully pay the tax debt but can pay a portion of the tax due before the Collection Statute Expiration Date (CSED).