An IRS guaranteed installment agreement is one of several different types of IRS Installment Agreement payment plans. This page covers Guaranteed Installment Agreements. Please refer back to our IRS Installment Agreement main page for more information on our installment agreement services.
IRS Guaranteed Installment Agreement Information
An IRS Guaranteed Installment Agreement is limited to a small group of delinquent taxpayers. Only individuals (no businesses or trusts or other entities) who owe under $10,000 to IRS in unpaid federal income taxes can qualify for this type of monthly payment plan.
The taxpayer must owe less than $10,000 to qualify
IRS rules reserve this payment plan for individual taxpayers who owe less than $10,000 in income tax not including penalties and interest and fees and any other additions to their balances due.
Taxpayer(s) must be current with all tax returns filed
All of the taxpayer’s 1040 individual income tax returns must be filed and all income taxes must be assessed. No tax returns can be overdue and/or unfiled. If the taxpayer has any tax returns that have not been filed IRS will not approve any installment agreement of any type. In fact, IRS requires that the previous five tax returns must have been filed on time and all taxes on those tax returns must have been paid when filed.
Financial disclosure forms are not required
Guaranteed Installment Agreements are guaranteed by IRS because these types of agreements are designed for speed and quick approval. Therefore, they do not require any financial statement verification such as a Form 433–A, Form 433–D, or Form 433-F.
IRS Guaranteed Installment Agreement requires full payment of all unpaid taxes within 36 months
The maximum time allowed for a Guaranteed Installment Agreement to be paid in full is three years, or 36 months. Therefore, if you owe the maximum amount of allowable income tax of $10,000 and IRS gives you 36 months to pay it off…. your minimum required monthly payment will be $278.
The taxpayer may choose the day of the month when the payment is to be made. The IRS and many tax professionals like to use the 28th of the month for the payment dates.
Guaranteed Installment Agreement vs. Streamlined Installment Agreement vs. Non Streamlined Installment Agreement
Many American taxpayers won’t qualify for guaranteed installment agreement status for various reasons. Those who do not qualify should refer to Streamlined Installment Agreement requirements since that status is easier to meet. It is most often much less troublesome to qualify for a Streamlined Installment Agreement. Read more about Streamlined Installment Agreements here (they are for Form 1040 debts of $10,000 to $50,000).
An additional group of taxpayers owes IRS over $50,000 and needs assistance in paying their Form 1040 debts. These taxpayers should investigate their options with the IRS Non Streamlined Installment Agreement program. Read more about Non Streamlined Installment Installment Agreements here (remember that they are for Form 1040 debts over $50,000).
What you must not do
First off, you cannot miss any of your monthly payments while you are in Guaranteed Installment Agreement status. Your failure to make timely monthly payments will default your status.
Quite simply, in order to maintain Guaranteed Installment Agreement status you must not have a case in federal bankruptcy court. Additionally, you must not have an Offer in Compromise case filed with Internal Revenue Service. Either of these occurrences will disqualify you from approval for a Guaranteed Installment Agreement.
Summary of the above IRS Requirements for a Guaranteed Installment Agreement
1. All of your unfiled tax returns must be filed before you request any kind of installment agreement with IRS.
2. Your total tax liability must be less than $10,000 not including penalties and interest and other fees and add-ons.
3. Your proposed monthly payments must completely pay off your unpaid taxes within 36 months.
4. You absolutely, positively cannot miss any monthly payments or your installment agreement will default and your case will be sent back to Automated Collection Service for IRS wage garnishment and IRS tax levy action.
5. This requirement is the one that disqualifies the most people. IRS requires that during the previous five years you must have filed all of your federal income tax returns on time an you also must have paid all of the taxes due on those tax returns when you filed them.
6. You cannot have any income taxes included in a federal bankruptcy court case.
7. You must not have an Offer In Compromise pending.
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We hope this IRS Guaranteed Installment Agreement information has been helpful.