IMF
Simple Payment Plan
Simple Payment Plan
A taxpayer calls with a balance due under $50,000. The taxpayer wants to establish a payment plan but does not know how much they should pay each month. The proper way for the CR to determine this is to…
What is
Ask the taxpayer how much they can afford per month and remind the
taxpayer of the benefits of paying off the balance as soon as possible. A CR should determine the maximum amount a taxpayer can pay, not the minimal amount. By starting with this discussion, the CR may be able to secure a higher payment. This is for the taxpayer’s benefit, as well as the IRS.
A business calls to set up an IA. You research the account and see the company has filed all their returns and FTDs. The balance is for Forms 941 totaling $27,000 AAB. You should:
What is Determine if a lump sum payment can be made to lower the amount to $25,000 or less
A CR is required to ask for which of the following information when performing disclosure authentication?
What is Name, DOB, SSN/TIN,Address as it appears on our records
Per IRM 10.10.3.3.6
When pending IA criteria is met, what Transaction Code and Action Code must be input
What is TC971 AC 043
In order to qualify for an In Business Trust or Non-Trust or Simple IA, a business must…
What is
Be current in filing
Owe $25,000 or less AAB if trust fund taxes are involved
Owe $50,000 or less AAB if non trust fund taxes are involved
Make a lump sum payment if the AAB is over these amounts
Full pay the entire balance within all CSEDs
True or False? A taxpayer who qualifies for a Simple Payment Plan can only make their monthly
payments online.
What is False
Taxpayers can make their payments by Direct Debit (DDIA), Payroll Deduction (PDIA), electronic methods or pay by mail
A business calls to set up an IA. You research the account and see the company has filed all their returns. The balance is for Form 941 totaling $15,000. There are no FTD made in the current quarter. You should:
What is Reject the IA and send the account to Independent Review
If the taxpayer is able to make up their FTDs during that time, the IA can be established
A taxpayer is calling on June 20th, 2026 to establish a Simple Payment Plan. The 2024 return is unfiled but no RD or TDI is created. The return shows a potential for a refund. What should a CR do?
What is Advise the taxpayer of the RSED, encourage them to file and establish the IA
When documenting AMS to indicate a taxpayer agreed to use OPA, which of the following History Literals are correct
What is OPAGREE
An In Business Non-Trust Fund Simple IA may be granted on balances for…
What is
A BMF in business non-trust fund balance of $45,000
Tool should be used to determine if the taxpayer’s monthly payment proposal meets Simple Payment Plan criteria
What is Compliance Suite Payment Calculator
A business calls with Form 941 balances that total $20,000 AAB. All FTDs and returns are filed. The business also has a balance on Form 940 for $8,000. The taxpayer is requesting a payment plan. What should you do?
What is If they can, advise the taxpayer to submit a lump sum payment to pay off the
Form 940 balance, and then establish a Simple Payment Plan
True or False? An Installment Agreement cannot be granted if the taxpayer is missing a return that shows a balance due of any kind.
What is False
Per IRM 5.19.2.6.4.5.3.2, IMF Little or No Tax Due, as long as the net tax due does not exceed
Little / No Tax Due, the IA can be granted. The taxpayer would be asked to file, but the IA would
not be delayed.
Of the following, what two business entities require verification of a Schedule K-1 on file under the ssn of the caller
What is Partnership and S-Corporation when the caller is not a corporate officer but is a shareholder
You take a call from an active corporation who owes $15,000 on their Form 1120, and $5,000 on their Form 941. They are current in filing. What kind of repayment agreement can the business have?
What is
a) A Short-Term Payment Plan Within 180 Days
c) An In-Business Trust Fund Simple IA
To qualify for a Simple Payment Plan, a taxpayer must…
What is
Owe a balance that is $50,000 or less AAB
Be able to full pay the balance, plus all accruals, within the CSED(s)
Meet FCC requirements
To qualify for a Simple Payment Plan, a business must be able to pay…
What is the total balance within the CSED
True or False? The User Fee amount should only be discussed with the taxpayer at the moment
a CR is ready to input an IA.
What is False
The taxpayer must be verbally advised of the User Fee whenever an Installment Agreement is
being discussed or considered
Disclosure for a S-CORP
EIN, NAME AND TITLE/ POSITION OF THE CALLER (ASK IF THEY CAN LEGALLY BIND), FULL BUSINESS NAME AND COMPLETE ADDRESS
A taxpayer calls and would like to know if his ex-spouse’s refund has been applied to their joint
balance. What can be given out?
What is the CR can advise the caller that his spouse’s refund was applied, and how
much the refund was
True or False? If a 2273C letter is sent to the taxpayer confirming that the agreement was set up
and advising the taxpayer of the terms and conditions, the CR does not need to advise the
taxpayer of the User Fee.
What is False
When on the phone, the CR must always advise the caller of the User Fee. Refer to IRM
5.19.1.6.4.16(3), IA Terms and Conditions
$0 to $50,000 simple payment plan for BMF in Business Non-Trust
What is
All returns filed or being closed
Aggregate assessed balance due is 50,000.00 or less (or will be after Voluntary Lump Sum Payment is received).
payment amount(s) will pay the total balance due , including accrued penalties and the interest before the CSED
In most cases, if a taxpayer needs to file a return to qualify for an IA, the CR should:
What is Advise the taxpayer to send the return with Form 9465 and wait to be contacted
The fours actions or agreements OPA allows
What is
Simple Payment Plan
Short-Term payment plan under 100,000
DDIA
Revised IA
True Or False
Oakland has the best instructors
What is true?
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