DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
Washington, DC 20224
SMALL BUSINESS / SELF-EMPLOYED DIVISION
January 20, 2012
Control Number: SBSE 05-0112-013
Expiration: January 20, 2013
Impacted: IRM 5.14.5 and
IRM 5.14.10
MEMORANDUM FOR DIRECTORS, COLLECTION AREA OPERATIONS
FROM: Scott D. Reisher /s/ Scott D. Reisher
Director, Collection Policy
SUBJECT: Streamlined Installment Agreements
This interim guidance memorandum is being issued to Collection Field function
employees to implement policy changes to Streamlined Installment Agreements. These
changes are effective immediately and will be placed into the next revisions of the IRMs
5.14.5 and 5.14.10.
The primary changes to the Streamlined IA criteria are:
• The dollar threshold increases from $25,000 to $50,000 aggregate unpaid
balance of assessment(SUMRY balance); and,
• The timeframe to full pay increases from 60 months to 72 months.
Based on these new criteria, when working accounts where the aggregate unpaid
balance of assessment (SUMRY balance) is $25,000 or less, the ONLY criterion that
changes is that the taxpayer now has 72 months instead of 60 months to full pay. All of
the other criteria remain the same:
• CSED protected
• Type of Entity
• IMF
• Out of Business BMF
• BMF Income Tax ONLY (Form 1120)
• No lien determination required
• No managerial approval required
• No CIS required 2
However, when working accounts where the aggregate unpaid balance of assessment
(SUMRY balance) is $25,001 - $50,000, the streamlined IA criteria become more
specific. The criteria for these accounts are:
• Payable within 72 months
• CSED protected
• No lien determination or managerial approval required
• Type of Entity
• IMF
• Out of Business Sole- Proprietors
• Agreement must be established as a Direct Debit Installment Agreement (DDIA);
and
• Ability to pay verified by securing a Collection Information Statement (CIS) per
IRM 5.1.10.3.2 and IRM 5.15.1 or use of the Streamlined IA Calculator (SLIAC).
Streamlined IAs may not be granted where the first payment on the agreement is a
lump sum payment that is made to pay down the balance to meet the $50,000 or less
aggregate unpaid balance of assessment (SUMRY balance) threshold. Taxpayers must
meet the $50,000 aggregate unpaid balance of assessment (SUMRY balance)
threshold at the time the Streamlined IA is granted. However, for a Streamlined IA,
taxpayers with a liability greater than $50,000 can be considered if they pay down the
liability to $50,000 or less prior to the agreement being granted.
The key changes in treatment for a Streamlined IA when the aggregate unpaid balance
of assessment (SUMRY balance) is $25,001 - $50,000:
• Type of taxpayer can ONLY be an individual (IMF) or an Out of Business – Sole
Proprietor;
• Agreement must be established as a DDIA; and
• Ability to pay verified by securing a Collection Information Statement (CIS) per
IRM 5.1.10.3.2 and IRM 5.15.1 or use of the SLIAC.
The new SLIAC will use the base Allowable Living Expenses (ALE) standards to
determine whether the taxpayer has sufficient income to sustain the minimal IA payment
at a particular debt level for 72 months.
The "Streamlined IA Calculator" is the verification tool that validates whether the
taxpayer has adequate income to support the proposed IA payment. If the SLIAC
indicates a higher payment can be made, the proposed payment amount will still be
accepted.
The SLIAC is a selection within the Installment Agreement menu on ICS. When this
option is selected, you will navigate to the Streamlined IA Calculator link. When the
SLIAC is used, copy the results to the ICS history. 3
If you have any questions, please contact me or a member of your staff may contact
Harry Clemson or David Beach.
cc: Director, Field Collection
Director, Campus Compliance Services (SB)
Director, Compliance (W&I)
Directors, Filing and Payment Compliance (W&I/SB)
Posted at 02/27/2012 05:46:16 PM
