The IRS has established a streamlined procedure for entering into installment agreements with certain taxpayers. Under the streamlined installment agreement procedure, eligible taxpayers can enter into an agreement either in person, by telephone, or by mail. If made by telephone or by mail, the agreement does not need the signature of the taxpayer. Further, the agreement does not require a collection manager’s approval and usually does not involve the filing of a lien. A lien may be filed, however, at the discretion of the revenue officer. IRM (December 23, 2015).
The streamlined installment agreement procedure is available for individuals, businesses that owe income taxes, and any business that is out of business regardless of the type of tax owed. Taxpayers with an aggregate unpaid balance of assessment that does not exceed $50,000 are eligible to enter into an installment agreement using the streamlined procedure. That amount does not include penalties and interest. The agreement generally must call for the balance due to be paid within six years. To qualify for the streamlined agreement for amounts owed of $25,001 to $50,000, a taxpayer must agree to make payments via direct debit from a bank account. 5
Compliance Note
Taxpayers with assessments greater than $50,000 may qualify for the streamlined process by paying assessment amounts greater than $50,000.