Purpose. This section provides guidance and procedures with regard to Guaranteed Installment Agreements, Streamlined Installment Agreements, or In-Business Trust Fund Express Installment Agreements. This IRM is dedicated to Installment Agreements (IAs) subject to certain balance due restrictions and minimum payment requirements.

Audience. These procedures and guidance apply to Field Collection (FC) employees (revenue officers and supervisory group managers).

Policy Owner. Director, Collection Policy, SBSE.

Program Owner. Collection Policy, SBSE, Case Resolution Alternatives (CRA) is the program owner of this IRM.

Primary Stakeholders. The primary stakeholders that are impacted by this IRM include:

Program Goals. The U.S. Federal Tax System is built on the premise that all taxpayers are expected to report their tax information correctly and pay their correct tax balance on time. However, there are times when a taxpayer has acted lawfully and ethically yet, because of circumstances beyond their control, they cannot meet their tax obligations. Under these circumstances, the IRS may be able to arrange an installment agreement (IA). By following the procedures prescribed in IRM, employees will be able to set up and process IAs.

The streamlined IA criteria are divided into two tiers, balance due of $25,000 or less and balance due of $25,001 to $50,000.

Streamlined IAs of $25,000 or less are approved for taxpayers under the following circumstances:

Streamlined IAs of $25,001 to $50,000 are approved for taxpayers under the following circumstances:

The following types of taxpayers qualify for streamlined IAs with an aggregate SUMRY balance of $25,001 to $50,000:

Accounts in any status qualify, including:

A NFTL determination is not required for a streamlined IA but may be made at the discretion of the revenue officer, and NFTLs may be filed.

No managerial approval is required for a streamlined IA.

Streamlined IAs with a SUMRY balance between $25,001 and $50,000 must be established as a Direct Debit IA (DDIA) or a Payroll Deduction IA (PDIA). Additionally, if the taxpayer has defaulted an IA for missed payments in the past 12 months, the taxpayer's ability to pay must be verified using the streamlined IA calculator (SLIAC) or a collection information statement (CIS) if it has already been provided by the taxpayer. Document the findings in ICS case history, including analysis and verification of all financial information, and inform the taxpayer of the collection determination and explain the analysis.

These IAs may be secured in person, by telephone, or by correspondence.

As with all IAs, the taxpayer must be current before the agreement is accepted. The taxpayer must have filed all tax returns that are due and paid taxes on all earned income, either through employer withholdings or estimated tax payments before entering into the IA. (See IRM 5.14.1.3, Identifying Pending, Approved and Rejected Installment Agreement Proposals on IDRS and IRM 5.14.1.4.1, Six-Year Rule and One-Year Rule.)

See IRM 5.14.11.5, Considerations after Default or Termination, Including Reinstatement, regarding reinstatement of IAs that meet streamlined criteria.

Encourage taxpayers to pay assessed amounts greater than $50,000 to:

Eligibility for an IA is based on the taxpayer’s current financial condition. However, there are situations in which the taxpayer insists on making payments above what they can afford. Refer to IRM 5.14.1.4(7), on IAs with backup 53 in case of default and termination.

Taxpayers may be granted streamlined agreements based on the criteria provided in IRM 5.14.5.2(1) - (16), even if they can fully pay their accounts.

Streamlined IAs of $25,000 or less will use 36 in the YY position (XX36) of the agreement locator number (ALN).

Streamlined IAs of $25,001 or greater will use 37 in the YY position (XX37) of the agreement locator number (ALN).

Taxpayers should be advised of accruals of penalty and interest during the duration of an IA. If the taxpayers decide it is in their best interest to pay the account balance fully, a payoff balance should be provided to the taxpayers with instructions regarding payment submission. See IRM 5.14.1.2(5), Installment Agreements and Taxpayer Rights, for the various electronic payment methods.

IRC 6159(c) requires the IRS to accept proposals of IAs under certain circumstances. Under IRC 6159(c), the IRS must accept proposals to pay in installments if taxpayers are individuals who:

Unlike the criteria for streamlined IAs, the dollar limit for guaranteed IAs of $10,000 only applies to tax. The taxpayer may owe additional amounts in penalty and interest (both assessed and accrued) and qualify for a guaranteed IA, so long as the tax liability alone is not greater than $10,000.

Guaranteed IAs may be granted by revenue officers and other contact employees. Managerial approval is not required for this type of IA. A financial statement is not required.

A NFTL determination is not required for a guaranteed IA but may be made at the discretion of the revenue officer, and NFTLs may be filed.

The IAT Compliance Suite Payment Calculator will be used to determine if the tax, including statutory additions, can be fully paid within three years or by the CSED, whichever comes first.

If taxpayers do not qualify for guaranteed IAs, consider streamlined IAs before considering other alternatives. Process guaranteed IAs as streamlined IAs on ICS.

Taxpayers should be advised of accruals of penalty and interest during the duration of an installment agreement. If the taxpayers decide it is in their best interest to pay the account balance in full, a payoff balance should be provided to the taxpayers with instructions regarding payment submission. See IRM 5.14.1.2(5), Installment Agreements and Taxpayer Rights, for the various electronic payment methods.

In-Business Trust Fund (IBTF) Express installment agreements may be granted if:

If accounts qualify for IBTF Express agreements:

Per IRM 5.12.2.3.1, Determination Requirement Exceptions, a NFTL filing determination decision is not required for in-business Trust Fund Express IAs. If the case cannot be closed as an IBTF Express IA on or before the NFTL filing determination date, a NFTL filing determination decision must be made based on the facts of the case. The revenue officer has the latitude to make a timely NFTL determination as a non-filing or deferral of the NFTL filing, then finish the negotiation and grant the IBTF Express IA. Refer to IRM 5.12.2.3.2, Determination Requirements and IRM 5.12.2.4.1, Integrated Collection System (ICS) Documentation When Deferring the Filing of an NFTL or Choosing “Do Not File”, for additional guidance. A revenue officer may consider filing an NFTL if they will protect the government's interests, such as:

A TFRP determination is not required if:

Use of the Direct Debit payment option (DDIA) is required on all lBTF Express lAs with a UBA between $10,000 and $25,000.

If you have a case that is an IBTF-Express IA that is paid using the direct debit payment option. See IRM 5.14.10.5, Direct Debit Installment Agreements for IBTF Cases, for input, approval, and routing procedures for this type of IA.

Managerial approval is required.

If IBTF Express IAs are in default or are terminated, they may be reinstated, or new agreements may be granted immediately if:

Business accounts with a UBA over $25,000 do not qualify for IBTF Express IAs.

The preferred method of closing Guaranteed, Streamlined, and In-Business Express IAs is by choosing Option A on the ICS Installment Agreement menu. Choosing this method of closure allows these installment agreements to be systemically uploaded from ICS to IDRS.

After the group manager approves the IA (if applicable), an ICS Print Manager Dialogue box provides the option of E-mail or immediate printing of the Form 433-D and Letter 2849, Direct Debit Installment Agreement - Installment Agreement Acceptance or Letter 2850, ICS Installment Agreement Confirmation. An ICS history entry is generated stating the IA was systemically uploaded to IDRS.

Generation of the acceptance letters and Form 3210s has not changed with the systemic upload process. You are still responsible for mailing of the Letter 2849/2850 to the taxpayer and power of attorney, if applicable.

Write "FILE COPY" in RED ink along the top of the Form 433-D and place it in the closed case file. Send the closed case file to CCP on an ICS generated Form 3210 to:

If a hard copy of Form 433-D was prepared and approved outside of ICS, select "Option B" under the Installment Agreement menu to close the case on ICS. Selection of this option will generate a TC 971 AC 063. Use the systemically generated Form 3210 to route the agreement (Form 433-D) to CCP at:

Use Form 3210 to send the case file to closed files to CCP at Mail Stop 5-E04.115.

Option B does not systemically generate an approval notification, Form 433-D or the Letter 2849/2850. Create the Letter 2849/2850 from the Installment Agreement menu under the Templates Listing on ICS. It is your responsibility to mail the letter to the taxpayer and power of attorney, if applicable.