If an account is not covered by the multifunctional policies or if, for some reason, a function is unable to award a instalment payment contract, assistance is requested by the collection function or the taxpayer is returned to collection. For 30 days after the rejection of requests for agreements. All foreign service functions that initiate instalment payment agreements transmit completed forms to centralized file processing. See the Guaranteed Reduced Rate Agreement Procedure for Accounts with Income Tax Below or Below $10,000 in IRM 18.104.22.168. The authority levels of the multifunctional instalment payment agreement apply to assessed and valued accounts, including taxpayers, who report insolvency when they file their return in a timely or late manner. If the taxable person is entitled to a refund which can still be credited under the refund status, inform the taxable person to file the refund declaration before the expiry of the refund status in order to reduce the balance due on the instalment payment agreement. Take full account of the rights and interests of taxpayers before recommending the rejection of an application for a instalment payment contract. consider all aspects of the application, including the circumstances presented by taxpayers, which they claim support the acceptance of the agreement; information provided by taxpayers to support the approval of the agreement; and the independent verification criteria described in IRM 22.214.171.124 (4) and MRI 126.96.36.199 (5). Although taxpayers are informed if refusal of agreements is recommended, you should not submit an effective refusal of the proposed agreements prior to the independent administrative audit, except in the limited situations described in 188.8.131.52 below. (See also MRI 184.108.40.206 on the independent review process.) If the agreement contains only pre-evaluated modules and the subject requests a DDIA, process the AI according to the IRM 220.127.116.11 (ordinary DDIA) or IRM 18.104.22.168 (IBTF DDIAs) procedures. If the agreements cannot be recommended for approval, inform taxpayers that their applications are pending and that the rejection of the application is recommended, and refer the matter to an independent administrative review.
Inform the taxpayer that their proposal to reject AI is recommended and, if upheld, they will have rights of appeal. Form 433-D, Instalment Payment Agreement, and Form 2159, Wage Deduction Agreement, provides room for planned increases or reductions in payment amounts. IDRS accepts two changes to payment amounts when systemic oversight agreements are introduced. Agreements must be tracked manually when more than two changes in the payment amount are foreseen. Document the reasons for the planned increases or reductions. The reasons may be the expected full payment of a loan that increases the solvency of the taxable person; income must increase or decrease; or the necessary cost of living is expected to increase or decrease. (See MRI 22.214.171.124). Taxable persons must meet all reporting and payment requirements before approving instalment payment agreements. If you are not eligible for a payment plan through the online payment tool, you can still pay in installments. The filing and payment of compliance must be considered before finding that the best method of payment of overdue taxes is made through a instalment payment agreement.
Examples of “Waiting” and “No Outstanding (Agreement)” can be found in IRM 126.96.36.199 and the following two diagrams. See the streamlined instalment payment agreement procedure for accounts with a total unpaid asset balance (SUMRY) of $50,000 or less in IRM 188.8.131.52. Signatures on Form 433-D are required for direct debit contracts (add a void cheque to OR on Form 433-D to document account number and bank code for processing); and for agreements that do not require management approval, see IRM 184.108.40.206, Instalment Payment Agreements, IRM 220.127.116.11, Guaranteed Tempered Payment Agreements and IRM 18.104.22.168, In-Business Trust Fund Express. . . .