Do you have outstanding tax liabilities of less than $50,000.00?

The IRS has recently expanded significantly the number of taxpayers who qualify for a “streamlined” installment payment plan.  Under the new guidelines, if a taxpayer has less than $50,000.00 in outstanding tax liabilities (previously, $25,000.00) and can repay the IRS within 72 months (6 years) (previously 60 months), the taxpayer can enter into a streamlined payment plan agreement with the IRS.

The streamlined installment agreement provides many benefits for the taxpayer over the normal payment plan requirements.  First, the taxpayer can propose the amount they would like to pay monthly, so long as the liability will be paid in full within 72 months.  In contrast, the normal payment plan requires the use of the taxpayer’s financial information and national standards to set the required monthly payment for the taxpayer.  Second, the taxpayer does not have to provide the IRS with a dearth of financial information, as would be required under a normal installment agreement.  Third, the streamlined agreement does not limit the taxpayer to using the local and national standards established by the IRS specifying how much a taxpayer can take into account for housing expenses, car expenses, etc.  Often, these standards severely limit the amount of expenses a taxpayer can use.  This results in a much larger required monthly payment and can prevent the taxpayer from establishing any payment plan whatsoever.

If you believe you would qualify for the new streamlined installment payment plan or want to discuss your options, please contact us at 312-444-1700 today.