Installment Agreement (IA)
All installment agreements are subject to a user fee. User fees for installment agreements are as follows:
Nondirect Installment Agreements
(Not set up on automatic deduction from your bank account)
Direct Debit Installment Agreements
(Set up on automatic deduction from your bank account)
New Agreements for Taxpayers
(With income at or below certain U.S. Department of Health and Human Services poverty guidelines)
Guarantee Installment Agreement
IRC 6159(c) requires to acept the taxpayer’s proposal of an IA if the following conditions are met:
- 9The taxpayer is an individual and owes an income tax liability with an aggregate unpaid balance of assessment amount of $10,000 or less
- 9During the preceding five taxable years, the taxpayer (including their spouse if the requested IA is for a jointly file return, has not failed to file or to pay income taxes, nor entered an IA for payment of taxes)
- 9The IA provides for full payment of the liability within 3 years
- 9The taxpayer agrees to continue to comply with the tax laws and the terms of the agreement for the period (up to 3 years) then agreement is in place
- 9A Guaranteed Installment Agreement must be allowed even if it is determined the taxpayer is trying to delay collection
Streamline Agreement (SIA)
A note of caution is to be aware penalties and interest will continue to accrue on the tax liability. A strategy I have used from time to time when a client owes greater than $50,000 and doesn’t want to disclose or prepare a collection information statement is to make a partially payment. The partial payment is used to bring the balance below $50,000 to then qualify for a streamlined installment agreement.
Non – Streamline Installment Agreement (NSIA) or Regular Installment Agreement
Partial Pay Installment Agreement (PPIA):
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