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84 Month Installment Agreement – IRS Pilot Program

  • OVERVIEW: The IRS pilot program allows individual taxpayers with an assessed balance of tax, penalty and interest between $50,000 and $100,000 to enter into a direct debit installment agreement. Now, individual taxpayers who owe up to $100,000 can pay through monthly direct debit payments for up to 84 months (7 years). While the IRS generally will not require a financial statement, they may need some financial information from the taxpayer such as bank account information to set up the direct debit agreement. The test project on expanded processing of Installment Agreements is scheduled to run through September 30, 2017. But based on test results, the expanded criteria for streamlined processing of installment agreements may be made permanent. At this point the IRS has continued the program thus far, but it has not been made a permanent IRS relief program.

  • REQUIREMENTS: In order to apply for the program, you must be in tax compliance. This means that you have filed at least the past six years of returns and made any required estimated tax payments (if applicable).

  • LIENS: Federal Tax Liens can be filed under this program. If you are very concerned about federal tax liens and no tax liens have already been filed, you should pay the balance under $50,000 (if possible) to qualify for the IRS Fresh Start Streamline agreement. However, if you cannot afford to pay the balance under $50,000.00 and a tax lien has already been filed, a taxpayer may request to remove the lien once the total account balance is under $25,000 and 3 direct debit installment agreement payments have been made. Taxpayers also need to request this in writing.

  • PROS: The upside to the 84-month pilot program is no financial statement is required and it is not based on ability to pay. This is especially beneficial for individuals that have a high income or lots of equity in assets such as a home, car, or retirement account. Also by setting up the installment agreement, you will be in good standing with the IRS. This means the IRS will not take any additional action to collect the tax debt such as Bank Levies, Social Security Levies, Wage Garnishments, or Seizures.

  • CONS: Similar to the IRS 72 month Fresh Start installment agreement, the arrangement must pay all tax periods within the statute. Generally the IRS has 10 years to collect the tax from the date of assessment. The date at which the tax expires and is no longer legally collectible is called the Collection Statute Expiration Date (“CSED”). If you have a tax period that is about to expire due to the CSED, the pilot program payment maybe very high to ensure each period will be paid within the statute. In this case, it may be better to have one of our Atlanta Tax Attorneys look at a financial based payment plan that may be lower based on your individual circumstances. In order to remain in Fresh Start agreement, you must continue to be tax compliant, i.e. file and pay any future tax due on time. If you fail to remain tax compliant by filing a late return or creating a new balance due, it can default your agreement and you will have to ask to reinstate the agreement. The more times you reinstate the installment agreement, the more difficult it become. Thus, it is very important for taxpayers to remain tax compliant because it will save you interest and penalties on the current year and prevent you from a continuous circle of always owing tax. However, interest and penalties will continue to accrue on the old tax liabilities included in the payment plan.

If you would like more information on the IRS 84 Month Pilot Program please contact us today at (404) 551-5838 for a free one hour consultation with Alyssa Maloof Whatley, Atlanta Tax and Bankruptcy Lawyer.

I run a CPA firm and Alyssa has helped my clients that have IRS issues. Her expertise ends up giving the clients more favorable tax liability positions than they had before. She is enjoyable to work with and communicates clearly and to the point. I have learned a lot from her due to her immense tax resolution knowledge.
Alyssa Whatley helped us with a major tax issue that seemed impossible and she seemed to do it with ease. She helped us through a very difficult and hard time. Alyssa's work ethics and performance set a very high standard that we value. She works with strong intention and honesty. She represented us so well and gave us honest answers. She was careful and this made us know that she is trustworthy. We knew that she really wanted to help us and that is her heart for why she does what she does. Alyssa has an endearing confidence that gave us assurance and a calm knowing that she is very knowledgable and good at what she does! Alyssa always responded promptly to us and kept us very informed. She is definitely at the top of her game in her field! Thankful to have had her representing us! Lindy
Alyssa immediately impressed me with her competence. That was most important to me. How well will my attorney do their job for me? Alyssa knocked it out of the park for me. Her understanding of our overly complex Tax laws never ceased to amaze me. Alyssa seemed to know every trick in the book to achieve the best results. Alyssa analyzed my state of affairs and delivered better results than I had hoped for. Before meeting Alyssa, I was wary about whether my attorney would have _my_ best interest at heart? I did not expect a cheerful attorney; What a difference a smile makes when you're going through troubled waters. Alyssa deserves my highest recommendation. I just wish I could express my appreciation better. Job well done, Alyssa! Thank you! Anonymous
I contacted Alyssa after I was wrongfully imprisoned due to a clerical error by Fulton Co. Alyssa listened with empathy to my entire story and took all of the correct steps in handling my case. Alyssa updated me frequently on my case so that I could rest assure it was in the right hands. Alyssa was able to get my case dropped and my money returned very quickly. Mrs. Whatley came highly recommended to me and I see why. Alyssa's professionalism, experience, compassion, and positive attitude was exactly what I needed during this time of uncertainty. Kaitlin
Mrs.Whatley handled a case for us with the IRS. We had tax liens after a Chapter 13 bankruptcy and she was able to have them removed promptly. She is extremely knowledgeable about tax law and I'd recommend her to anyone, including my own family and friends. Keith