Streamline and Non-Streamline Payment Plans
The IRS offers three streamlined payment plans based on how much tax debt you owe. Streamlined payment plans allow you to pay your tax debt in full within a reasonable period of time: $10,000 or less – 36 months; up to $50,000 – 72 months; and up to $100,000 – 84 months.
Generally, if you qualify for a streamlined installment agreement, you will not be subjected to the financial disclosure requirements. However, you may be required to pay your tax debt through automatic payroll or bank account withdrawals.
Non-streamlined payment plans require financial disclosures and allows the IRS to collect from you based on your available income after all necessary living expenses are considered. For example, you owe $85,000 in back taxes. If, after completing a financial analysis, it is determined that you only have $200 per month left over, after paying your reasonable living expenses, the IRS will accept the $200 as a monthly payment towards your past due tax debt.
Under a non-streamlined payment plan the IRS may reassess your income and expenses periodically. During this re-assessment, the IRS will examine your ability to pay more towards your outstanding tax debt.
Whether streamlined or non-streamlined, getting into a payment plan stops all aggressive collection action against you. Therefore, you don’t have to fear wage and bank levies, and in some cases, tax liens can be withdrawn.
When disclosing your financials to the IRS or state isn’t in your best interest, we will help you determine how you can afford a streamlined payment plan. However, when necessary, we will complete a comprehensive financial analysis to ensure our clients are paying only what they can afford under a non-streamline agreement. When we find that our clients are experiencing a financial hardship, we offer a solution that has helped many families and businesses get back on track – CLICK HERE to learn about the IRS Currently Not Collectible Status.