Streamlined installment agreement program modified

BY ALISTAIR M. NEVIUS

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 (SBSE 05-0112-013). 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.

Just last February, the IRS increased the threshold from $10,000 to $25,000. (See “IRS announces changes to lien process.”)

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.

More from the JofA:

 Find us on Facebook  |   Follow us on Twitter  |   View JofA videos

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

SPONSORED REPORT

Getting leases in line

ASC Topic 842 is a relatively simple standard that can mean profound changes for organizations with leases. This report examines what makes this standard challenging and describes new ways for CPAs to add value.