The IRS announced on January 20, 2012 by issuing SBSE 05-0112-013 that it has made significant changes to its steamlined installment agreements (SIA). What is a SIA? The IRS has the authority to enter into a written installment agreement that enables a taxpayer to pay his/her tax liability over a period of time if the arrangement will facilitate collection of the tax due the IRS. Under the former rules, the total IRS liability (including interest and penalty assessments) had to be under $25,000 and had to be repaid over a 60-month period. Effective immediately, the IRS is now allowing certain taxpayers to enter into a SIA if their total IRS liabilities are under $50,000 and the IRS will allow a 72-month repayment period.
