Streamlined Agreements – Who Qualifies and Who Does Not?

The Streamlined Agreements initiative was launched in 2012 to help U.S. citizens and businesses reduce the burden of tax compliance. Since its inception, the program has helped many taxpayers take advantage of its benefits. However, there are some people who do not qualify for the program. In this post, we will discuss who qualifies for Streamlined Agreements and who does not.

You may qualify for a Streamlined Installment Agreement (SIA) if you owe $50,000 or less in debt and/or your company owes $25,000 or less in debt. These installment arrangements are referred to as "streamlined" by the IRS since they don't require verification of your assets, expenditures, obligations, or income. You must also meet other eligibility requirements, which are listed on the IRS website.

Most situations don't require a Collection Information Statement because you can pay off the balance before the CSED expires. This includes income taxes and any other levies, such as the Trust Fund Recovery Fee.

There are two payment plans available: one with a 60-month term and another with a 72-month term. However, they typically do not exceed the Collection Statute Expiration Date CSED, which is when your tax expires or when the IRS is unable to collect on it anymore.

Offer In Compromise (OIC)

OIC is another option for individuals and businesses with tax debt. An OIC allows you to settle your debt by paying a reduced amount of what's owed, usually 25% or less than the full liability. To qualify for this program, you must be able to demonstrate that it is unlikely that we would ever collect more than four times the offered payment from you.

The IRS Fresh-Start Program

In 2011, the IRS launched the Fresh Start Program, which lowered the requirements for Streamlined Installment Agreements. Businesses needed to have less than $10,000 in taxes and individuals less than $25,000 before the change.

Individuals can now qualify for up to $50,000 in assessed taxes (with exceptions), and businesses can be eligible for up to $25,000 in net taxable income.

The Requirements for Streamlined Installment Agreements

The requirements for a streamlined installment arrangement are:

1. If you have less than $50,000 in student loan debt, including interest and penalties, you may qualify for a streamlined installment agreement.
   
   
2. You must be prepared to make payments up to 72 months or before the CSED(s) expire if you owe $50,000 or less. If you owe more than $50,000, you are ready to pay off the entire debt before the CSED deadline approaches.
   
   
3. You must have filed at least the last six years of tax returns to qualify for an installment agreement. If you have past-due returns, you must submit those taxes before you can apply for an installment plan.
   
   
4. You have not made any installment payments in the last five years. You and your spouse (if you are married filing jointly) have not entered into any installment agreements.
   
   
5. Declare that you are not intending to declare bankruptcy.
   
   
6. You are prepared to pay a fee to establish a Streamlined Installment Agreement.
   
   

How To Apply for a Streamlined Installment Agreement

To apply for an installment agreement, you will first need to have all of your documents in order then make a request for an IRS payment plan by filing the IRS Form 9465-FS which can be accessed online. The IRS will review your submission and decide if you qualify for an installment agreement based on the information provided in the application.

We Can Help You Reach a Streamlined Agreement with the IRS

At Morris and Associates Tax Specialists, we can help you determine if you qualify for a streamlined installment agreement, and guide you through the application process. We have years of experience dealing with the IRS on behalf of our clients and will work to get you the best possible outcome. Feel free to give us a call today at (678) 641-3193.

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