Streamlined Installment Agreement

IRS Definition

Streamlined installment agreements may be approved for taxpayers under the following circumstances:

• The aggregate unpaid balance of assessments is $50,000 or less. The unpaid balance of assessments includes tax, assessed penalty and interest, and all other assessments on the tax modules. It does not include accrued penalty and interest.
• If pre-assessed taxes are included, the pre-assessed liability plus unpaid balance of assessments must be $50,000 or less.
• The minimum payment amount is determined by dividing the unpaid balance of assessments by 72. The IA must resolve all balances due prior to the expiration of the CSED.

More from H&R Block

There are several advantages to getting a streamlined installment agreement. The most important advantage is that the IRS usually won’t file a Notice of Federal Tax Lien if you qualify. Also, the IRS doesn’t request a financial statement to determine whether you qualify.

• If you owe over $50,000, it’s best to pay the balance down to $50,000, so you will qualify for a streamlined installment agreement and avoid a tax lien.
• If you owe over $25,000, the IRS will require that you sign up to have payments directly debited from your checking account to avoid a tax lien.

Learn all the options you may have if you can’t pay your taxes.