The IRS recently announced the expansion of its Streamlined Processing of Installment Agreements (“Streamlined Processing”), which could potentially benefit thousands of taxpayers. While Streamlined Processing has been around for some time, the new pilot program will extend to taxpayers who owe up to $100,000 in total taxes, interest, and penalties. Those qualifying for Streamlined Processing will be able to pay off their liabilities over a period of up to 84 months. The expansion of this program makes it an opportune time to address lingering issues and fears regarding outstanding federal taxes. For individual taxpayers, some of the main benefits of the program include:
- Increase of eligibility from $50,000 to $100,000
- Increase of payment term from 72 months to 84 months
- Increased threshold for determination on filing of a Notice of Federal Tax Lien*
- No requirement to complete a Collection Information Statement (Form 433-A)**
* No determination is required if the balance does not exceed $50,000.
* Must agree to make payments by direct debit or payroll deduction if balance exceeds $50,000.
The pilot program for Streamlined Processing benefits many taxpayers who would otherwise be required to submit voluminous financial information and see this as an impediment to addressing their collection issues. It will also expedite the resolution of many tax problems. Furthermore, for those who owe between $25,000 and $50,000 to the IRS, the pilot program provides that no determination on the filing of a Notice of Federal Tax Lien is needed if the balance is paid through direct debit or payroll deduction. As in the past, current filing compliance is required in order to be eligible and taxpayers must not have already been contacted by a revenue officer. Taxpayers may also still qualify for a Guaranteed Installment Agreement if their balance does not exceed $10,000.
Aside from the expanded eligibility offered under the pilot program, Streamlined Processing is also available for business taxpayers. Similar to individuals, if a business taxpayer’s liability does not exceed a given threshold for a certain type of tax, an installment agreement will be granted without the need to complete a Collection Information Statement (Form 433-B).
For more information on how Streamlined Processing and the limited-time pilot program could be beneficial in resolving your tax issues, please contact Brandon N. Mourges at firstname.lastname@example.org or 410.951.1149. Aside from this new procedure, Rosenberg Martin Greenberg, LLP has significant experience in negotiating other collection alternatives, such as Offers in Compromise, partial payment installment agreements, Currently Not Collectable status, and others.