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Direct Debit Installment Agreements

Posted by attorney Henry Lively

The IRS has just sent out a news release that they will give taxpayers a "fresh start" with their Direct Debit Installment Agreements ("DDIA"). To give taxpayers an incentive to enter the program, the IRS is offering to withdraw or avoid it altogether if one has not been filed.

The DDIA program requires a taxpayer to allow the IRS to directly debit their bank account for payment on the installment agreement. An existing installment agreement that is not a DDIA can be converted and any liens withdrawn.

The total unpaid assessment cannot exceed $25,000 for a taxpayer to qualify for the program. The IRS has also indicated that a probationary payment period will have to be completed first before the lien is removed to insure that the automatic debits will be made by the taxpayer. No guidance has been made available as to how long this period might be at this time.

The good news here is that the IRS is attempting to help taxpayers get back in the system by easing their levy procedure.

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Filed under: Lien Tax law

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