Starting in March 2020, the IRS rolled out a new payment plan resolution to those owing between $50k-$250k in tax debt called the Non-Streamlined Installment Agreement, or “NSIA”. This new plan helps people in this group of debt easily enter into a reasonable payment plan, while also protecting their assets and their privacy.
History and Other Options
Prior to this new plan, the IRS had an 84 month streamlined payment plan established. This tester plan was available but was only a beta test and was not publicized, even available to debtors after it technically expired. But this new NSIA has been able to help many and is working great. If you owe less than $50k, you technically can apply for this type of arrangement, however the standard streamlined is far better as there are less entry requirements and in that plan there are tax lien protections.
Collection Statute Expiration Date and NSIA
The main requirement for the NSIA is the tax principal, interest, and penalties must be fully paid before the debt expires. Tax debt has a natural 120 month statute period, with tolling exceptions. An example was the debtor owing $200k with 100 months remaining could technically qualify to pay this if that debtor paid roughly $2,000 a month. That’s it. No other questions necessary.
Criteria
Other uniqueness’s to this is that it must be individual debt, not business. You also cannot have a revenue officer assigned to you yet. Lastly, the monthly payments must be directly debited from your bank or payroll deducted. Again, these are voluntary payments and not garnishments or levies.
Protect Assets
The best part of this is it protects your assets. While a lien is filed, you are not required to cash out accounts or sell assets, or even disclose financial information to the IRS. If you are able to make that monthly payment, the IRS protects you from collections and your assets remain intact.
While the NSIA has many benefits, it may not be the best first choice to make. Be sure to consult a professional to help with that determination, and if necessary, with establishing the right resolution for your situation. Give us a call 800-822-4122 to learn your options.