Streamlined Processing of Installment Agreements

The IRS is testing expanded criteria for streamlined processing of taxpayer requests for installment agreements. The test is scheduled to run through September 30, 2017.

During this test, more taxpayers will qualify to have their installment agreement request processed in a streamlined manner. Based on test results, the expanded criteria for streamlined processing of installment agreement requests may be made permanent.

During the test, expanded criteria for streamlined processing will be applied to installment agreement requests submitted to SB/SE Campus Collection Operations, this includes the Automated Collection System (ACS). Expanded criteria will not be applied to installment agreement requests submitted to W&I Accounts Management, SB/SE Field Collection or through the Online Payment Agreement application.

One expanded criterion being tested immediately is this: Individual taxpayers with an assessed balance of tax, penalty and interest between $50,000 and $100,000 may experience accelerated processing of their installment agreement request. This will occur if the taxpayers' proposed monthly payment is the greater of their total assessed balance divided by 84 – or – the amount necessary to fully satisfy the liability by the Collection Statute Expiration Date.

For individual taxpayers who have filed all required returns and have an assessed balance of tax, penalties and interest of $50,000 or less,

 

CURRENT Streamlined CRITERIA	TEST 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	Payment Terms None. This criteria is unchanged.
Collection Information Statement Verification of ability to pay required in event of an earlier default for assessed balances of $25,001 to $50,000	Collection Information Statement Not required.
Payment Method Direct debit payments or payroll deduction required for assessed balances of $25,001 to $50,000	Payment Method Direct debit payments or payroll deduction is preferred, but not required.
Notice of Federal Tax Lien Determination not required for assessed balances up to $25,000. Determination is not required for assessed balances of $25,001 - $50,000 with mandatory use of direct debit or payroll deduction agreement. Note: If taxpayer does not agree to direct debit or payroll deduction, then they do not qualify for Streamlined IA over $25,000.	Notice of Federal Tax Lien No change in criteria for assessed balances up to $25,000.  Determination is not required for assessed balances of $25,001 - $50,000 with the use of direct debit or payroll deduction agreement. Note: If taxpayer does not agree to direct debit or payroll deduction, then they do qualify for Streamlined IA over $25,000, but a Notice of Federal Tax Lien determination will be made.

The test criteria discussed above also applies to all out of business debts up to $25,000 and all out of business sole-proprietorship debts up to $50,000. For in-business taxpayers, test criteria apply to income tax only debts up to $25,000.

For individual taxpayers who have filed all required returns and have an assessed balance of tax, penalties and interest between $50,001 and $100,000,

CURRENT CRITERIA

TEST CRITERIA CHANGES

None - Streamlined processing criteria currently does not apply to assessed balances of tax between $50,001 and $100,000

Payment Terms Up to 84 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 if the taxpayer agrees to make payment by direct debit or payroll deduction   Payment Method Direct debit payments or payroll deduction is not required; however, if one of these methods is not used, then a Collection Information Statement is required.   Notice of Federal Tax Lien Determination is required.

The test criteria discussed above also applies to all out of business sole-proprietorship debts between $50,001 and $100,000.