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

The Streamlined Installment Agreement allows individuals owing $50,000 or less (in combined tax, penalties, and interest) to set up a payment plan for up to 72 months without submitting a financial statement.

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

Under IRC §6159(c), individuals who owe $10,000 or less in income taxes, can pay within 3 years, and meet other basic criteria are legally entitled to 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 is based on the taxpayer's actual ability to pay, resulting in monthly payments that will not fully satisfy the liability; any balance remaining when the CSED expires becomes uncollectible.

Question 4

What IRS form is used to request an installment agreement?

Accepted Answer

Form 9465

Answer

Form 9465 (Installment Agreement Request) is the standard form taxpayers use to formally request an installment agreement with the IRS.

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

An installment agreement does not stop interest or penalty accrual; both continue to accumulate on the unpaid balance throughout the life of the agreement.

(CTRS) Certified Tax Resolution Specialist Practice Test

(CTRS) Certified Tax Resolution Specialist Practice Test

CTRS CTRS Installment Agreements and Payment Plans