CTRS CTRS Installment Agreements and Payment Plans

Question 1

What is a Streamlined Installment Agreement and what are the eligibility criteria for individuals?

Accepted Answer

An installment agreement for individuals who owe $50,000 or less and can pay within 72 months, requiring no financial statement

Answer

An installment agreement for businesses owing $25,000 or less payable in 24 months

Answer

An expedited agreement available only to first-time delinquent taxpayers

Answer

An agreement requiring full payment within 12 months for any balance

Question 2

What is a Guaranteed Installment Agreement and who qualifies?

Accepted Answer

Individuals who owe $10,000 or less in income taxes and can pay within 3 years are guaranteed an installment agreement by statute

Answer

Any taxpayer who has never been delinquent before is guaranteed an installment agreement

Answer

Businesses with less than $50,000 in payroll tax liabilities are guaranteed an installment agreement

Answer

Any taxpayer who agrees to direct debit is guaranteed an installment agreement

Question 3

What is a Partial Pay Installment Agreement (PPIA) and how does it differ from a standard installment agreement?

Accepted Answer

A PPIA allows monthly payments below full liability, with the remaining balance potentially expiring uncollected when the CSED runs out

Answer

A PPIA reduces the outstanding liability by 50% before setting up payment terms

Answer

A PPIA requires the taxpayer to pay only the principal without any interest or penalties

Answer

A PPIA is identical to a standard IA but is only available for payroll tax liabilities

Question 4

What IRS form is used to request an installment agreement?

Accepted Answer

Form 9465

Answer

Form 433-A

Answer

Form 12153

Answer

Form 8822

Question 5

Does entering into an installment agreement stop the accrual of penalties and interest on the outstanding tax balance?

Accepted Answer

No, penalties and interest continue to accrue until the balance is paid in full

Answer

Yes, both penalties and interest stop accruing once an IA is approved

Answer

Yes, but only the failure-to-pay penalty stops; interest continues

Answer

Only the failure-to-file penalty stops; failure-to-pay and interest continue

Question 6

What is the user fee for establishing a direct debit installment agreement (DDIA) online?

Accepted Answer

$31

Answer

$107

Answer

$149

Answer

$225