Automated Tax Credit - Tax Debt Resolution

Streamlined Installment Agreement

Struggling with IRS tax debt? Don’t let it overwhelm you. If you owe $50,000 or less in individual taxes or $25,000 or less in business taxes, you are eligible to qualify for a Streamlined Installment Agreement (SIA). This simplified payment plan offers a more flexible way to tackle your tax debt without the hassle of extensive financial disclosures.

How does it work? And who qualifies? Let’s dive in.

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Do I Qualify for a Streamlined Installment Agreement with the IRS?

Here are the general requirements for individuals to qualify for a Streamlined Installment Agreement:

  • Debt Amount: You owe $50,000 or less in individual income taxes, not including interest and penalties.
  • Payment Plan: You're willing to make payments for up to 72 months or before the Collection Statute Expiration Date (CSED).
  • Tax Returns: You've filed at least the last six years of individual income tax returns or the last five years and an extension for the current year.
  • No Installment Agreements: Neither you nor your spouse (if married filing jointly) have entered into any installment agreements with the IRS in the past five years.
  • No Bankruptcy: You're not currently in bankruptcy.
  • Payment Fee: You're willing to pay a setup fee to establish the SIA.

Please note that the SIA provisions do not apply to taxes owed by your business. If your business has tax debt, you’ll need to explore separate options.

Start Your Streamlined Installment Agreement Application Process with the IRS Now

How Can I Request the IRS for a Guaranteed Installment Agreement?

1. Verify Your Tax Return Status

  • Contact the IRS to ensure you have filed all required tax returns. If you're missing any, file them immediately to avoid further penalties.
  • Visit our unfiled tax returns page for guidance on filing your returns.

2. Choose Your Application Method

  • Online Payment Agreement (OPA): If you qualify and owe $50,000 or less, use the IRS's online tool for the most convenient option.
  • Phone: Call the IRS at the number provided on their website.
  • Mail: Complete IRS Form 9465 and mail it to the specified address.

3. Calculate Your Monthly Payment

  • Estimate: Divide your total debt (including interest and penalties) by 72 months (or the remaining months until the CSED).
  • Adjust: To account for potential interest and penalties, consider dividing by a slightly lower number.

4. Set a Payment Date

  • Choose wisely: Select a payment date between the 1st and 28th of each month that aligns with your budget.
  • Avoid late payments: If you delay your payments, your payment agreement with the IRS may get terminated.

5. Select a Payment Method

  • Direct Debit or Payroll Deduction: For debts between $25,000 and $50,000, these methods are required to avoid a tax lien.
  • Form 2159: Use this form to set up payroll deduction and pay the setup fee with your first payment.

6. Seek Professional Help (Optional)

  • Consult a tax professional: If you encounter difficulties or prefer guidance, a licensed tax professional can assist with forms and the process.

7. Await IRS Decision

  • Anticipate a response: The IRS typically provides a decision within 30 days.
  • Continue payments: To avoid potential issues, continue making payments until you receive a response.
  • Contact the IRS: If you have questions or require updates, feel free to contact the IRS directly.
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Why Choose Automated Tax Credits for Your Streamlined Installment Agreement Application?

Automated Tax Credits is your trusted partner in navigating the complex world of IRS tax debt. We offer a streamlined, hassle-free approach to setting up a Streamlined Installment Agreement (SIA). Here’s why you should choose us:

  • Expert Guidance: Our platform provides clear instructions and step-by-step guidance, ensuring you complete your application accurately.
  • Affordable Solutions: We offer our services at a significantly lower cost than traditional tax firms, saving you thousands of dollars.
  • Time-Saving Process: Our streamlined platform simplifies the application process, reducing the time and effort required on your part.
  • Comprehensive Support: Our team is available to answer your questions and provide assistance throughout the application process.
  • Increased Success: With our expert guidance and efficient platform, you'll have a higher chance of successfully obtaining a Streamlined Installment Agreement.

By choosing Automated Tax Credits, you’re investing in a reliable and affordable solution to your tax debt challenges. Let us help you navigate the IRS process and achieve financial relief.

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Frequently Asked Questions

What is a Streamlined Installment Agreement (SIA)?

An SIA is a simplified payment plan offered by the IRS to individuals and businesses with tax debts of $50,000 or less (individuals) or $25,000 or less (businesses). It differs from traditional installment agreements because it doesn’t require extensive financial documentation.

Who Qualifies for a Streamlined Installment Agreement with the IRS?

To qualify for an SIA, you must:

  • Owe $50,000 or less in individual taxes (or $25,000 or less for businesses).
  • File your tax returns on time.
  • Agree to make payments within a specified timeframe.
  • Not be in bankruptcy.
  • Pay a setup fee.

What Happens if I Miss a Payment on an SIA?

While the IRS may be lenient for one or two missed payments, continued missed payments could lead to the termination of your SIA. If the agreement is terminated, the IRS may take further collection actions, such as asset seizure.

What Are the Alternatives to an SIA?

If you don’t qualify for an SIA, you might be eligible for:

  • Offer in Compromise: Offering a compromise may allow you to settle your IRS debt for a lower amount.
  • Partial Payment Installment Agreement: This is a more complex agreement that requires financial disclosure.
  • Financial Hardship Claim: If you can prove financial hardship, the IRS might temporarily suspend collection efforts.

 

What are the setup fees for a Streamlined Installment Agreement (SIA)?

The setup fees for an SIA depend on how you set up the payment plan:

  • Using the Online Payment Agreement (OPA) and direct debit: $31.
  • Using the OPA and paying by check or money order: $130.
  • Not using the OPA and paying by direct debit: $107.
  • Not using the OPA and paying by check or money order: $225.

 

If you need to reinstate or restructure your SIA, there is a fee of $89 ($10 if you use the OPA).

It’s important to note that these fees may change. It is always a good idea to verify the current fees with the IRS before setting up an SIA.

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