IA
Table

Guaranteed IMF Only

Streamlined (1)

Streamlined (2)

IBTF Express

IBTF Express (2)

IBTF IA

Routine IA

Partial Payment IA (PPIA)

Amount

$10,000 or less

$25,000 or less

$25,001 - $50,000

$10,000 or less

$10,001 - $25,000

Any amount

Type Of Tax

Income Tax only

IMF, BMF Income, OOB BMF

IMF, OOB Sole Proprietor

BMF Trust Fund

IMF, BMF Income, OOB BMF

Any

Maximum payment term

3 years and full pay within CSED

72 months within CSED

72 months within
CSED
Must be DDIA

24 months within CSED

24 months within CSED
Must be DDIA

CSED

CSED (+5, +1, if extension appropriate)

CIS Required

No*

Yes**

Yes

Yes
Financial review every 2 years

Lien Determination Required

Yes

TFRP Determination

No, but protect ASED

Yes

Yes, if applicable

Can Extend CSED?

Yes, if appropriate

Must Pay from Available Assets?

Yes

Management Approval Requirement

Yes

Apply by

Online, phone, or postal mail

Phone or postal mail

Reference

IRM 5.14.5.3

IRM 5.14.5.2

IRM 5.14.5.4

IRM 5.14.7.4

IRM 5.14.9.4

IRM 5.14.2.1

1. Verification of Ability to pay using SLIAC/CIS is not required unless the taxpayer has defaulted on an IA for missed payments within the past 12 months.
2. CIS verification is not required for IBTF IAs up to $25,000 that will full pay within 60 months. IRM 5.14.7.4(6)
3. Outstanding liabilities only include current and prior calendar year liabilities and the taxpayer does not meet the definition of a Repeater trust fund taxpayer. IRM 5.7.8.3
4. If RO assigned, balance is >$250k, history of non-compliance, wage garnishment or levy, debt certifed to State Dept. as seriously delinquent.

To identify accounts as “Pending” installment agreements, taxpayers must:
          □ Provide information sufficient to identify the taxpayer
          □ Identify the tax liability to be covered by the IA
          □ Propose a monthly or other periodic payment of a specific amount
          □ Be in compliance with all filing requirements
          □ If a BMF taxpayer is identified as a repeater, the taxpayer must be in compliance with all FTD requirements. IRM 5.14.7.2(1)(c)
          □ Not be in bankruptcy and owe post petition taxes unless the installment agreement meets Guaranteed Installment Agreement criteria (See IRM 5.9.4.19.1)
          □ Not be proposing an IA for a Restitution Based Assessment (RBA) that will not fully satisfy the RBA by the CSED (See IRM 5.14.4.6)

Six-Year Rule and One-Year Rule

5.14.1.4.1 (01-01-2016)

Six-Year Rule:

When a taxpayer is unable to full pay immediately and does not qualify for a streamlined installment agreement, the taxpayer may still qualify for the six-year rule. Taxpayers are required to provide financial information in these cases, but are not required to provide substantiation of reasonable expenses. All expenses may be allowed if: the taxpayer establishes that he or she can stay current with all paying and filing requirements, the tax liability, including projected accruals, can be fully paid within six years and within the CSED, and the expense amounts are reasonable. Do not automatically allow agreements based on the six year maximum if expenses are unreasonable.

Reminder:

The Six-Year Rule is not applicable to corporations, partnerships, LLCs (where the LLC is identified as the liable taxpayer), or any business expenses. The Six-Year Rule is also not applicable for Business Master File (BMF) liabilities owed by in-business sole proprietors or LLCs, where the individual owner is identified as the liable taxpayer.

One-Year Rule:

Taxpayers who cannot full pay their accounts within six years may be given up to one year to modify or eliminate excessive necessary expenses. In some cases, by modifying or eliminating some conditional expenses, a taxpayer may be able to full pay the liability plus accruals within the six year limit. This would enable a taxpayer to retain some conditional expenses under the Six-Year rule. The taxpayer does not have to qualify for the Six-Year rule in order to apply the One-Year rule.

Reminder:

The One-Year Rule is not applicable to corporations, partnerships, LLCs (where the LLC is identified as the liable taxpayer), or any business expenses. The One-Year Rule is also not applicable for BMF liabilities owed by in-business sole proprietors or LLCs, where the individual owner is identified as the liable taxpayer.