Non Streamlined Installment Agreement – for those who must go the nontraditional route

As discussed elsewhere in our website, there are three general types of IRS installment agreements. For the people who do not qualify for a guaranteed installment agreement (for form 1040 IRS debts up to $10,000) or a streamlined installment agreement (for form 1040 IRS debts $10,000 up to $50,000), there is always the third choice. That third choice is the Non Streamlined Installment Agreement.

Your personal financial information must be provided

In order to qualify for this non streamlined installment agreement monthly payment plan you must provide IRS with your personal financial information on their Form 433-F Collection Information Statement. This form gives IRS your banking information, assets owned (real estate, automobiles, etc.), credit cards, employment information, retirement accounts, work history, monthly income and living expenses, etc.

IRS then uses this financial information to calculate what they call your “ability to pay.” This basically means that they add up all of your monthly income and then they add up all of your “allowable monthly living expenses.” Next they will subtract your expenses from your income to determine your “monthly net cash flow.”

Determining your Non Streamlined Installment Agreement monthly payment amount

This Monthly net cash flow number then becomes your potential monthly payment amount. Your IRS contact (either an IRS field agent or an IRS telephone representative) will then inform you that your case must be passed up the chain of command to an IRS manager for review and approval or change within about two weeks.

IRS will file a federal tax lien on you

It is standard IRS practice to file an IRS tax lien on any taxpayer who owes more than $25,000. Tax liens are filed at the taxpayer’s county courthouse. The liens become public records and are available to credit reporting agencies such as Equifax and Experian and TransUnion. If you have federal tax liens filed against you it should be easy for you to locate the liens on your credit reports.

IRS wants your monthly payment to be as high as possible

Keep in mind that this entire process is designed by IRS. Since it is designed by them it is quite easy to understand that it is designed with one purpose in mind. That purpose is to result in the highest possible monthly payment from you to the IRS.  Nothing is inherently wrong with the way it works. They’re just looking to get paid. But keep this in mind and always understand that there is professional help out there that is available to you that can be well worth the fees charged for the knowledge and expertise in this highly specialized area.

But you want your monthly payment to be as low as possible

So if IRS wants your monthly payment to be as high as possible…. what do you want? You want it be as low as possible, don’t you? As low as possible but still within the IRS guidelines.

And that’s where proper planning and research and education and understanding and knowledge come in. If you’re going to do this yourself please make sure you educate yourself and do a good job of it.

Feel free to call a few professionals and seek some telephone time and ask some questions. CPAs and attorneys and enrolled agents are usually willing to help you out and give you some free time on the phone. However, if you call and get someone on the phone who is obviously trying to do nothing but make an instant sale…. end the phone call and contact someone else.

There is plenty of free help out there. Take advantage of it.

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We hope this IRS Non Streamlined Installment Agreement information has been helpful.