Guaranteed Installment Agreements
- Timalyn S. Bowens
- 21 hours ago
- 6 min read
An installment agreement is a payment arrangement between a taxpayer and the IRS. It allows the taxpayer to repay the debt over time. Not all taxpayers will qualify for an offer in compromise or to pay pennies on the dollar. So it's a good thing that those aren't their only payment and negotiation options. If your client doesn't qualify for an offer in compromise, don't feel defeated. There are still ways that you can help them.
Your guidance and expertise are the peace of mind that they are looking for. A big tax problem is relative. Owing $7,500 to the IRS can cause some taxpayers to lose sleep, just as $750,000 does for others. You can help taxpayers in the first scenario sleep better with options like a Guaranteed Installment Agreement.
A Guaranteed Installment Agreement is for individual taxpayers. It's special because it is a proposed payment arrangement that the IRS cannot reject under §6159(c). In this article, I'm going to break that down into layman's terms for you. I'll cover who qualifies, how to apply, and I'll share some suggested pricing.
Qualifying for a Guaranteed Installment Agreement
§6159(c)(1) lets us know that to qualify for a guaranteed installment agreement, the debt cannot exceed $10,000. After that, the taxpayer's past and tax compliance come into play. For the past 5 years, they have not :
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