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

Posted on August 2, 2008
Filed Under Automated Collection Service, IRS Financial Statements, Installment agreements |

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. 

Comments

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

  1. Tim Ramsey on August 2nd, 2008 11:23 pm

    I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

    Tim Ramsey

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