Translate

Monday, January 30, 2012

IRS Announces Streamlined Installment Agreement Program

The IRS Small Business/Self-Employed Division modified the maximum unpaid balance of assessment taxpayers must meet to qualify for its streamlined installment agreement program and extended the time for payment. The aggregate unpaid balance of assessment threshold has doubled, from $25,000 to $50,000. The timeframe for full payment has been extended from 60 months to 72 months.

Only individuals and out-of-business sole proprietors will qualify for a streamlined installment agreement when the unpaid balance of assessment is $25,001 to $50,000. Individuals, businesses that file Form 1120, U.S. Corporation Income Tax Return, and other types of businesses that are out of business can qualify for a streamlined installment agreement for income taxes if their unpaid balance of assessment is $25,000 or less.

All agreements for unpaid balances of more than $25,000 must be established as direct debit installment agreements.

Please contact me directly at lancewgurel@gurelcpa.com for advice on your specific tax situation.

From Journal of Accountancy and IRS (SBSE 05-0112-013)