IRM 5.14 Instalment payment agreements are primarily intended for use by collection contact staff. It is also referenced by other functions of directives and temperance agreement procedures. This section provides multi-functional authority for the granting of instalment payment arrangements and refers to the measures required as part of the instalment payment process. Collection staff should refer to this section to learn more about the power of agreement of other functions and the types of assistance that other functions may request. Take full account of the rights and interests of taxpayers before recommending the rejection of an application for a instalment payment contract. consider all aspects of the application, including the circumstances presented by taxpayers, which they claim support the acceptance of the agreement; information provided by taxpayers to support the approval of the agreement; and the independent verification criteria described in IRM 22.214.171.124 (4) and MRI 126.96.36.199 (5). Although taxpayers are informed if refusal of agreements is recommended, you should not submit an effective refusal of the proposed agreements prior to the independent administrative audit, except in the limited situations described in 188.8.131.52 below. (See also MRI 184.108.40.206 on the independent review process.) In-Business Trust Fund (IBTF) Express instalment payment agreements may be granted if: If the agreement contains only pre-valued modules and the taxpayer requests a DDIA, process the AI according to the procedures set out in IRM 220.127.116.11 (ordinary DDIA) or IRM 18.104.22.168 (IBTF DDIAs). Audit staff who receive a request for a payment agreement from a taxpayer should follow the procedures of IRM 22.214.171.124, taxpayer responses and IRM 4.20.4, the possibility of review and instalment payment agreements. If taxpayers are unable to pay in full, consider whether they qualify for Guaranteed, Optimized, or In Business Trust Fund Express Payment Agreements (see IRM 5.14.5, Streamlined, Guaranteed, and In-Business Trust Fund Express). Inform taxpayers that federal tax refunds can be set off against net accounts due in instalments, including income tax refunds for individuals whose sole proprietorships or partnerships have taxes and instalment payment agreements.
(In these cases, make sure TC 130 is entered for the corresponding Social Security number(s).) Instalment payments should be made in accordance with point 126.96.36.199 of the IRM. Payment in instalments is based on the combined capacity to pay demonstrated by SMO and LLC`s separate collection information declarations. Six-year rule: If a taxable person is unable to pay in full immediately and does not qualify for a streamlined phased agreement, the taxpayer can still qualify for the six-year rule. In such cases, taxable persons are required to provide financial information, but are not required to justify reasonable expenses. . . .