In the first week of March 2025, the IRS made a very quiet announcement of a “new simplified installment agreement.”
I am using quotes because they’re not new. It’s the old standard streamlined agreement the IRS Field Collection force (Revenue Officers) have always had, but with one change.
Prior to today, a streamlined installment agreement with a Revenue Officer was limited to those owing less than $50,000 and it had to be paid back within 72 months or the time remaining on the CSED, whichever was shorter. The IRS has removed the 72 months, and so now Revenue Officers can set up a streamlined, or simple, installment agreement if the taxpayer owes less than $50,000 over the time remaining on the collection statute (CSED). A welcome change though frankly a minor one.
There are a couple of caveats:
- It is only for individuals – businesses are still limited to $25,000 owed or less over 24 months.
- It does not replace the ACS NSIA which is $250,000 or less over the time remaining on the CSED. The reason the field has not been granted this more generous agreement is because the taxpayers assigned to Revenue Officers are considered the hardest cases or the worst abusers of the system (their words, not mine).
- The IRS states this can also now be done online. I state it that way because we have not tried yet to set one up so I am taking them at their word that it will work.
This is the first of what I believe to be many steps the IRS will use to try and make it easier to get cases closed given their new staffing challenges.
We will try and keep you appraised of any other changes as we see them.
