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.
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.
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 a streamlined installment arrangement are:
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.
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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