Taxpayers Still Owe IRS after Paying off Installment Agreements

The Internal Revenue Service’s streamlined installment agreement program has brought in large amounts of revenue from people who owed back taxes, but at least 90,000 taxpayers using a streamlined installment agreement to pay back taxes may still owe the IRS after they complete the terms of their agreement.

A new report from the Treasury Inspector General for Tax Administration on the program found that approximately 3.1 million taxpayers entered into streamlined installment agreements with the IRS last fiscal year, resulting in approximately $5.9 billion in collections for the IRS. The agreements reduce the amount of documentation needed from taxpayers and require only minimal processing on the part of the IRS.

However, the report found that IRS procedures have allowed for inconsistent processing and treatment of taxpayers, some of whom still owed taxes even after fulfilling the terms of the agreement. Due to inconsistencies, some agreements will not be paid off when expected, according to the report.

For more information: www.onts9.com

Leave a Reply

Your email address will not be published. Required fields are marked *