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Since client is delinquent with filing requirements, the IRS will not consider any collection resolution until client files all past due returns. For income tax returns, the IRS will generally require the last 6 (six) years of returns.
Since total assessed IRS liability and/or combined assessed and estimated additional IRS liability is less than $50,000, a Streamlined Installment Agreement will generally be accepted as a collection resolution. For tax liabilities of $10,000 and under (excluding penalties and interest), a Guaranteed Installment Agreement will generally be accepted. An Offer in Compromise, Full Pay Installment Agreement, Partial Pay Installment Agreement, or Currently Not Collectible “Status 53” may be possible alternative collection resolutions. Utilize preliminary results obtained in the Resolution Evaluation tool to determine best course of action.
Generally verbal, written, or online request for Guaranteed Installment Agreement payable within three years or within the Collection Statute Expiration Date (CSED) whichever comes first, will be granted without disclosing financial information. However, in some cases (poor prior compliance history) collection information may be required using forms below.
Generally use this resolution if there is enough excess monthly income to full pay the IRS liability over 72 months. Also a good alternative if client does not want to divulge financial information to the IRS. Interest and penalties continue to accrue. Direct Debit Installment Agreement (DDIA) MUST be established.
Generally, use this resolution if client has no equity in assets or cannot borrow against assets but has enough excess monthly income to full pay the IRS liability by the collection statute expiration date(s) (CSED). Interest and penalties continue to accrue.
Generally, use this resolution if client has no equity in assets or cannot borrow against assets and doesn't have enough excess monthly income to full pay the IRS by the collection statute expiration date(s) (CSED). The IRS will monitor this situation and request updated collection information every two years. Additionally, if the IRS believes that the client's situation will improve in the future and because of that will not approve an Offer in Compromise based on Doubt as to Collectibility, a Partial Pay Installment Agreement is a good temporary resolution. Interest and penalties continue to accrue.
Generally use this resolution if the calculated Reasonable Collection Potential (RCP) is significantly lower than the IRS Liability and the client has the ability to pay the Reasonable Collection Potential over 5 months, 24 months, or over the remaining statutory period for collection.
Generally use this alternative if client has no available excess monthly income and some equity in assets but cannot sell or borrow against them to come up with an Offer in Compromise settlement. The IRS will periodically request additional collection information to determine the continued feasibility of this status. Interest and penalties continue to accrue.
Since client is not in compliance with current year's liability, the IRS will generally not enter into a collection resolution unless: Client becomes current, or It is estimated that no tax liability will exist in the current year, or If it is late in the year, attempt to postpone resolution into next year and wrap current year's liability into resolution, or Persuade Revenue Officer or ACS to include current year's liability into resolution as outlined in IRM 5.14.1.4.2 Item 19 (09-19-2014) which states: “Analyze the current year's anticipated tax liability. If it appears a taxpayer will have a balance due at the end of the current year, the accrued liability may be included in an agreement. Compliance with filing, paying estimated taxes, and current federal tax deposits must be current from the date the installment agreement begins”.