iachecklist

INSTALLMENT AGREEMENTS IRS CHECKLIST

The Checklist used by the IRS in securing an installment agreement

Found in IRM Handbook 114.1

Compliance and Customer Service Manager's Handbook

IV.

Installment Agreements

A.

General

(1)

Have all applicable taxpayer rights been documented?

(2)

Have third party contacts been recorded?

(3)

Are all periods of liability included?

(a)

Has full compliance been discussed, documented and totally accounted for in the agreement?

(b)

Have required estimated tax payments been included?

(c)

If required, has a corrected Form W-4 been submitted for the taxpayer?

(4)

Is levy source information complete?

(a)

Name of levy source.

(b)

Address, including zip code, of levy source.

(5)

Check the CIS -- is it current and complete?

(a)

Has CIS been thoroughly analyzed and verified if required?

(b)

Had full credit report been secured on IMF entity balances over $100,000?

(c)

Is agreement for maximum amount available from taxpayer?

(d)

Have increases in payments been scheduled?

(e)

Has CIS been signed by taxpayer? If the CIS was received in the mail, the absence of a signature, if all entries appear to be reasonable, does not prevent approval of an agreement.

(f)

Have deviations from allowable expense guidelines been documented and are they reasonable?

(6)

Does the agreement provide for full payment prior to the CSED? Extension (not to exceed 5 years)?

(7)

Have TC 971 AC 43 and AC 63 been input when appropriate?

(8)

Have prior IA proposals been sent to the Independent Reviewer prior to rejection?

(9)

Has a lien been filed?

(a)

A determination must be made if aggregate assessed balance is over $5000, or

(b)

A determination must be made if aggregate assessed balance is over $2000 and agreement is scheduled to last longer than one year.

B.

BMF Agreements

(1)

Has cause and cure of the delinquency been addressed?

(a)

Are FTDs current?

(b)

Is delinquent taxpayer a repeater?

(c)

Have Trust Fund Compliance Program procedures been considered? (Refer to Trust Fund Compliance Handbook)

(2)

If corporation, has Trust Fund Recovery Penalty been considered?

(a)

Should assertion of TFRP been considered?

(b)

Should assessment be made to have an additional means of collection available?

(c)

Has R/O secured a waiver to extend the ASED?

IV.	Installment Agreements
A.	General
(1)	Have all applicable taxpayer rights been documented?
(2)	Have third party contacts been recorded?
(3)	Are all periods of liability included?
(a)	Has full compliance been discussed, documented and totally accounted for in the agreement?
(b)	Have required estimated tax payments been included?
(c)	If required, has a corrected Form W-4 been submitted for the taxpayer?
(4)	Is levy source information complete?
(a)	Name of levy source.
(b)	Address, including zip code, of levy source.
(5)	Check the CIS -- is it current and complete?
(a)	Has CIS been thoroughly analyzed and verified if required?
(b)	Had full credit report been secured on IMF entity balances over $100,000?
(c)	Is agreement for maximum amount available from taxpayer?
(d)	Have increases in payments been scheduled?
(e)	Has CIS been signed by taxpayer? If the CIS was received in the mail, the absence of a signature, if all entries appear to be reasonable, does not prevent approval of an agreement.
(f)	Have deviations from allowable expense guidelines been documented and are they reasonable?
(6)	Does the agreement provide for full payment prior to the CSED? Extension (not to exceed 5 years)?
(7)	Have TC 971 AC 43 and AC 63 been input when appropriate?
(8)	Have prior IA proposals been sent to the Independent Reviewer prior to rejection?
(9)	Has a lien been filed?
(a)	A determination must be made if aggregate assessed balance is over $5000, or
(b)	A determination must be made if aggregate assessed balance is over $2000 and agreement is scheduled to last longer than one year.
B.	BMF Agreements
(1)	Has cause and cure of the delinquency been addressed?
(a)	Are FTDs current?
(b)	Is delinquent taxpayer a repeater?
(c)	Have Trust Fund Compliance Program procedures been considered? (Refer to Trust Fund Compliance Handbook)
(2)	If corporation, has Trust Fund Recovery Penalty been considered?
(a)	Should assertion of TFRP been considered?
(b)	Should assessment be made to have an additional means of collection available?
(c)	Has R/O secured a waiver to extend the ASED?