If you owe the IRS inevitably a payment plan is going to be one of the options that is reviewed. Since the Fresh Start Program was initiated the IRS has implemented what are known as Streamline Installment Agreements.
Under this program the IRS currently offers two types of installment agreements. Both are based on the balance you owe and how long the IRS still has to collect.
Streamline Installment Agreements
Established IRS guidelines offer streamline installment agreements based on your total amount owed and the remaining Collection Statute Expiration Dates (CSEDs).
As of September 2016 the IRS has setup expanded criteria allowing more people to qualify for a streamline installment agreement. Should these guidelines not become permanent we will update this post.
Payments can be setup for a maximum of 72 months or the remaining CSEDs, whichever is lowest.
Your balance is divided by the number of months remaining on the CSED or 72 to determine the lowest amount the IRS will accept.
The IRS will allow you to mail-in payments.
Payments can be setup for a maximum of 84 months or the remaining CSEDs, whichever is lowest.
Your balance is divided by the number of months remaining on the CSED or 84 to determine the lowest amount the IRS will accept.
Mail-in payments will require a Collection Information Statement (IRS Form 433-F, 433-A, or 433-B).
If payments are arranged via Direct-Debit, a Collection Information Statement is not needed
Owe More than $100,000?
Streamline Installment agreements are not available to taxpayers owing more than $100K in liability. Regular installment agreements are still available, but they will require that a Form 433-F, 433-A, or Form 433-B be completed.
We want to provide you all the facts. Listed below are some links and resources you may find useful if you are considering an IRS Streamline Installment Agreement
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