Author Box
Articles Categories
All Categories
Articles Resources

IRS Increases Streamline Installment Agreement Debt Ceiling

March 07, 2012 | Comments: 0 | Views: 181

An IRS Installment Agreement, or payment plan, is the primary means by which taxpayers with tax debts settle up with the government. A special provision in the law allows the IRS to accept payment plans without reviewing your financial information, which they are otherwise normally required to do. These simpler payment plans are called a Streamline Installment Agreement.

Normally, applying for an IRS payment plan is literally like applying for a home mortgage loan, and requires extensive prying into your personal finances. Historically, the IRS will simplify this procedure if you owe less than $25,000 and can make large enough payments to pay off the tax debt within 5 years (60 months).

The IRS has issued new regulations regarding Streamline Installment Agreements, due to the continued economic difficulties and the fact that their collections case burden is skyrocketing and they don't have the personnel to manage so many tax debts.

Now, the IRS will accept a Streamline Installment Agreement for taxpayers that owe up to $50,000. In addition, they will give you up to 6 years to pay it all off. This effectively makes the vast majority of tax debtors eligible for the program, allowing the IRS to expend resources chasing after people that owe much larger sums of money, and lessening the headache and aggravation they cause to middle class families that have enough to worry about without the threat of the IRS seizing funds in bank accounts or garnishing wages.

Setting up an Installment Agreement under these criteria can be done over the phone or on the IRS web site. Of course, you may wish to consult with a licensed tax professional to determine if another option, such as Status 53 or an Offer in Compromise, may be better for you financially. Oftentimes, individuals and small businesses that qualify for a Streamline Installment Agreement with a small payment amount may also be eligible for these other programs. Status 53, also called "Currently Not Collectible" status, doesn't require you to make any payments, but does require full financial disclosure. An Offer in Compromise also requires full financial information from you, but allows you to settle your entire tax liability for some fixed amount that is less than what you actually owe.

As with most things in life, make sure that you explore all your options, and that you thoroughly understand both your rights and your obligations under any tax resolution program you enter into. Seeking advice from a qualified professional, even if you are going to negotiate a resolution on your own, is always suggested.

Jassen Bowman is an IRS-licensed Enrolled Agent, and assists small businesses and individuals with resolving IRS tax debts, creating tax-advantaged business processes, establishing systems and procedures for more efficient business operations, and implementing results-oriented lead generation campaigns to fuel revenue growth. For free tax and business operations consultations, call 970-930-1040.

In his free time, Jassen enjoys geocaching, ice dancing, and is a figure skating test judge.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Installment Agreement


Streamline Installment Agreement


Irs Increases Streamline


Irs Debt Help

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 558

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 288

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 287

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 300

Tax attorneys, CPAs, and enrolled agents are all qualified to file tax returns and provide assistance with tax resolution. So how can you choose the tax pro who's right for you?

By: Oswald Hermitl Finance > Taxes Reliefl July 03, 2012 lViews: 195

Tax attorneys and certified public accountants are both equipped to help you with complicated tax matters, but the two jobs aren't interchangeable. Learn the difference to hire the right tax

By: Kelly R Robertsonl Finance > Taxes Reliefl July 02, 2012 lViews: 139

Truckers nowadays have a lot more to worry about than heavy traffic and the high cost of fuel. Whether you're an owner operator, an independent contractor, or a commercial company driver, you should

By: Maria Allenl Finance > Taxes Reliefl June 28, 2012 lViews: 144

Owing back taxes to the state or federal tax authority is a hassle in and of itself. However, when you add heavy late fees and other tax penalties into the mix, you can be left an even bigger mess

By: Kelly R Robertsonl Finance > Taxes Reliefl June 26, 2012 lViews: 147

If you need tax help, there are several different routes you can take. One way is to tackle the problem yourself, which might save you a few dollars in the short term. In the long term, however,

By: Mark R Randalll Finance > Taxes Reliefl June 22, 2012 lViews: 193

The Disability Tax Credit may be one of the best ways to get income tax money back from the government - and it is also one of the least aptly named of the tax credits available in Canada. While most

By: Colleen A Hughesl Finance > Taxes Reliefl May 30, 2012 lViews: 168

Tax resolution services firms have a large number of different pricing models they use. Understanding these pricing models will help you make a more informed decision regarding whom you hire for help.

By: Jassen Bowmanl Finance > Taxes Reliefl March 24, 2012 lViews: 149

Tax resolution companies can be some of the most unscrupulous outfits on the planet. Don't become yet another victim of tax resolution scams. This article will show you how to identify the hucksters,

By: Jassen Bowmanl Finance > Taxes Reliefl March 24, 2012 lViews: 138

One of the difficulties that can arise from being a self-employed handyman is figuring out how to handle taxes. Understanding tax law is obviously something most people would rather not get into, due

By: Jassen Bowmanl Finance > Taxes Reliefl March 23, 2012 lViews: 140

Figure skating is a sport that requires more than just grace and artistry. While most non-skaters don't realize this, pulling off any technical element in skating requires a significant amount of

By: Jassen Bowmanl Recreation & Sports > Figure Skatingl June 14, 2011 lViews: 162

Discuss this Article

comments powered by Disqus