Taxpayers who owe the IRS between $25,000 and $100,000 may now benefit from expanded test criteria for streamlined processing of installment agreements.

The expanded criteria for liabilities from $25,001 to $50,000 no longer require a collection information statement be submitted, or that payment be made by direct debit.  If a direct debit agreement is entered into for payment, however, no Notice of Federal Tax Lien will be filed.  A significant feature of the test is the expansion of streamlined processing to liabilities between $50,001 to $100,000.  For liabilities within this range, the requirement to file a Collection Information Statement has been eliminated if the taxpayer agrees to make payment by direct debit or payroll deduction. 

In addition, the term of the payment plan has been extended to the lesser of 84 months or the number of months necessary to satisfy the liability in full by the Collection Statute Expiration date. The test of the expanded criteria will run through September 2017 at which time a determination will be made about adopting it permanently.  

If you have any questions regarding the information in this blog post, please contact Sue Shaughnessy at sms@tgccpa.com or 703.385.8888.