If you have a small business with employees, and you owe up to $25,000 in taxes, you may qualify for an In-Business Trust Fund Express Installment Agreement (IBTF-Express IA). In February, 2011, the IRS created an initiative to create easier access to installment agreements for small businesses that are struggling with tax debt. Generally, these installment agreements do not require financial statements or financial verification with the installment agreement application.
In order to qualify for an IBTF-Express IA, you must meet the following criteria:
- You must owe less than $25,000 at the time the agreement is established. If you owe more than $25,000, you will need to reduce your liability before entering into the agreement in order to qualify.
- The debt must be paid in full within 24 months- or prior to the Collection Statute Expiration Date (CSED), whichever is earlier.
- If the amount you owe is between $10,000 and $25,000, you must enroll in a Direct Debit installment agreement (DDIA)
- You must be compliant with all filing and payment requirements.
In order to request an In-Business Trust Fund Express Installment Agreement:
-Call 1-800-829-4933 or the number listed on your tax bill
-Visit your local IRS office
-Complete IRS Form 9465, Installment Agreement Request (PDF), and send it to the address on your bill. If you do not have a bill, send the form to the address on page 2 of Form 9465.
If you have questions about your business and overdue tax bills, you may also want to seek the advice of a tax professional.
Daniel Stoica Accounting Professional