The IRS released SBSE Memorandum (SBSE-05-0112-013), Streamlined Installment Agreements (IA), on January 20, 2012. It provides interim guidance memorandum and is issued to Collection Field function employees to implement policy changes to Streamlined Installment Agreements. These changes are effective immediately and will be placed into the next revisions of the IRMs 5.14.5 and 5.14.10.
The primary changes to the Streamlined IA criteria are:
· The dollar threshold increases from $25,000 to $50,000 aggregate unpaid balance of assessment(SUMRY balance); and,
· The timeframe to full pay increases from 60 months to 72 months.
Based on these new criteria, when working accounts where the aggregate unpaid balance of assessment (SUMRY balance) is $25,000 or less, the ONLY criterion that changes is that the taxpayer now has 72 months instead of 60 months to full pay.
· All of the other criteria remain the same:
o CSED protected
o Type of Entity
IMF
Out of Business BMF
BMF Income Tax ONLY (Form 1120)
o No lien determination required
o No managerial approval required
o No CIS required
However, when working accounts where the aggregate unpaid balance of assessment (SUMRY balance) is $25,001 - $50,000, the streamlined IA criteria become more specific.
The criteria for these accounts are:
o Payable within 72 months
o CSED protected
o No lien determination or managerial approval required
• Type of Entity
• IMF
• Out of Business Sole- Proprietors
o Agreement must be established as a Direct Debit Installment Agreement (DDIA); and
o Ability to pay verified by securing a Collection Information Statement (CIS) per IRM 5.1.10.3.2 and IRM 5.15.1 or use of the Streamlined IA Calculator (SLIAC).
Streamlined IAs may not be granted where the first payment on the agreement is a lump sum payment that is made to pay down the balance to meet the $50,000 or less aggregate unpaid balance of assessment (SUMRY balance) threshold.
Taxpayers must meet the $50,000 aggregate unpaid balance of assessment (SUMRY balance) threshold at the time the Streamlined IA is granted. However, for a Streamlined IA, taxpayers with a liability greater than $50,000 can be considered if they pay down the liability to $50,000 or less prior to the agreement being granted.
If you have IRS tax liabilities of $50,000 or less and would like an Installment Payment Plan contact us for a FREE confidential consultation regarding your options please call Marini & Associates, P.A. at 888-8-TAXAID or go to our website www.TaxLaw.ms.
