Taxation & Estate Planning

Agreements to repay IRS debts under $25,000 can be simple and straightforward.

By howardlevy

I often have new clients come in who owe the IRS under $25,000 and have the ability to repay the debt with monthly installment agreements.  If we determine they can repay the debt within 60 months, we secure from the IRS a repayment that is called a “streamlined installment agreement.”  The Internal Revenue Manual makes these agreements simple and straightforward.       

Benefits of streamlined installment agreements include:

-     No financial disclosures are required to the IRS (bank accounts, source of income, assets, etc.) as would be necessary in other IRS collection cases.

-     No negotiation is necessary with the IRS - they will set up the agreement automatically at the 60 month repayment rate with interest.

-     The agreement can be established either by phone or online at the IRS website.

Streamlined installment agreements are creatures of Section 4.20.4.3 of the Internal Revenue Manual. These agreements are available only on income tax liabilities, not employment taxes.  As is the case with any installment agreement, remaining current on all tax filings and payments is necessary. 

Full post as published by IRS and the Law on August 02, 2008 (boomark / email).