The IRS Small Business/Self-Employed Division modified the maximum unpaid balance of assessment taxpayers must meet to qualify for its streamlined installment agreement program and extended the time for payment (SBSE 05-0112-013). The aggregate unpaid balance of assessment threshold has doubled, from $25,000 to $50,000. The timeframe for full payment has been extended from 60 months to 72 months.
Just last February, the IRS increased the threshold from $10,000 to $25,000. (See “IRS Announces Changes to Lien Process.”)
Only individuals and out-of-business sole proprietors will qualify for a streamlined installment agreement when the unpaid balance of assessment is $25,001 to $50,000. Individuals, businesses that file Form 1120, U.S. Corporation Income Tax Return, and other types of businesses that are out of business can qualify for a streamlined installment agreement for income taxes if their unpaid balance of assessment is $25,000 or less.
All agreements for unpaid balances of more than $25,000 must be established as direct debit installment agreements.