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Tax Debt and Bankruptcy Blog

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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.
  • Can my small Business negotiate a “Streamlined Agreement” with the IRS?

    Our Arizona Tax Lawyer Can Help Negotiate A Streamlined Agreement With The IRSAn IRS “Streamlined Agreement” is really just a negotiated payment plan that allows a person or business to pay the debt back in full with interest over a certain period of time.

    The reason this payment plan is considered a “Streamlined” plan is because if the business or person meets certain criteria, no financial statement has to be provided.

    In other words the amount of the payment is just a function of the amount of total debt divided by time.

    In 2012 individuals became entitled to a Streamlined Agreement and the ability to avoid using a financial statement to negotiate a payment plan, if the following is true:

    1.  The debt is $50,000.00 or less

    2.  The person hasn’t had another Installment Agreement within the last 5 years.

    3.  The amount proposed will pay the debt within 72 months

    Businesses are now able to do the same thing if:

    1.  The debt is less than $25,000.00

    2.  The debt can be paid in full in 24 months or less

    3.  A direct debit payment is set up from a bank account

    If you own a small business with tax debt that is $25,000.00 or less, this type of arrangement is typically easy to set up.  Sometimes however, it is wise to talk to someone about the business’ overall debt and income situation, in order to determine whether the negotiation of a payment plan using actual finances wouldn’t make more sense.

    Michael Anderson, Tax Lawyer In ArizonaWritten By:

    Anderson Tax Law
    2158 N. Gilbert Rd. Ste 101
    Mesa, Arizona 85203

    Phone: (480) 507-5985
    Fax: (480) 507-5988
    Email: [email protected]
    Website: http://taxlawyeraz.com