Do you owe the IRS? Maybe set up a payment plan.

 If you owe taxes to the IRS, there are options. One of them is an installment agreement. But, what is the process and requirements.

Everything depends on the amount you owe and which collection function within the agency is in control of your case, Field Collection or Campus Collection. There are more stringent requirements if you are in Field Collection. 

Field Collection is made up of Revenue Officers that are required to contact you in person, get complete financial statements, file the Notice of Federal Tax Lien, seize assets, etc. They usually are easy to work with, however, it is their job to be more invasive.

Today the discussion is going to focus on the Campus Collection function in getting an agreement. You will know where your case is when you receive the first few notices. They will be from ACS (Automated Collection System) as indicated in the upper left corner under the IRS logo. It will also have a toll free number of 800-829-7650 for individuals or 800-829-3903.

The new streamlined processing criteria apply to the following types of taxpayers:

• Individuals and out-of-business sole proprietors with an assessed balance of tax, penalties and interest up to $50,000
• Out-of-business taxpayers with assessed balances up to $25,000
• In-business taxpayers with income tax only assessed balances up to $25,000

Note: All taxpayers must be current with filing all required returns to qualify.

The new streamlined installment agreement processing criteria are as follows:

STREAMLINED CRITERIA

Payment Terms

Up to 72 months – or – the number of months necessary to satisfy the liability in full by the Collection Statute Expiration date, whichever is less.

Collection Information Statement

Not required.

Payment Method

The preferred method is either direct debit or payroll deduction, but not required.

Advantages of direct debit agreements include:

• Reduced user fee
• Waived user fee for low-income taxpayers entering into direct debit agreements on or after April 10, 2018
• Eliminated check mailing
• Eliminated postage

Notice of Federal Tax Lien

Determination not required for assessed balances up to $25,000.

Determination not required for assessed balances of $25,001 - $50,000 with the use of direct debit or payroll deduction agreement.

For a streamlined installment agreement over $25,000 and there is no direct debit or payroll deduction agreement, then a Notice of Federal Tax Lien determination is required.

I hope this helps.