5.14.1  Securing Installment Agreements  (06-01-2010)

  1. Installment Agreements are arrangements by which the Internal Revenue Service allows taxpayers to pay liabilities over time. If full payment cannot be achieved by the Collection Statute Expiration Date, and taxpayers have some ability to pay, Partial Payment Installment Agreements may be granted. During the course of agreements, penalties and interest continue to accrue. Generally, no levies may be served during installment agreements.

  2. The terms "delinquent taxes," "accrued taxes," and "current taxes" are used in this manual. They are defined as follows:

    1. Delinquent Taxes: balance due, ACS balance due accounts and/or notice status accounts;

    2. Accrued Taxes: unassessed amounts due on returns or undeposited FTDs as of the date of contact; and

    3. Current Taxes: FTDs and amounts that become due after the date of contact.

  3. Taxpayers should be encouraged to pay the liability in full to avoid the costs of an installment agreement, which include a user fee, accrual of penalties and interest, and the possible filing of a Notice of Federal Tax Lien (NFTL).

  4. In addition to the policies and procedures provided in sections 1 – 12 of this chapter, the following IRM chapters, sections and subsections provide procedures on installment agreements for specific functions within the Internal Revenue Service:

    • IRM 4.20.4 (Examination Collectibility - Installment Agreements);

    • IRM (Campuses, ACS, toll-free); and,

    • IRM (Appeals).

    See IRM, Multi-functional Installment Agreements, which contains guidance for other functions.  (06-01-2010)
Installment Agreements and Taxpayer Rights

  1. Request full payment of the tax liability. Encourage taxpayers to pay the tax liability as quickly as possible. If taxpayers are unable to pay in full, secure a complete Collection Information Statement. (See IRM

  2. Request some payment from taxpayers. Taxpayers may be required to make a payment (see IRM or payments (see IRM while securing documentation to determine the proper disposition of accounts.

  3. When taxpayers are unable to pay a liability in full, an installment agreement (IA) should be considered.

  4. Taxpayers with individual income tax liabilities of $10,000 or less (exclusive of penalties and interest) may be guaranteed an IA. Taxpayers with an aggregate unpaid balance of assessment (SUMRY) equal to $25,000 or less may qualify for Streamlined Agreements. The unpaid balance of assessment includes tax and assessed interest and penalties. It does not included accrued interest and penalty. (See IRM and IRM, Guaranteed and Streamlined Installment Agreements.)

  5. There are various methods for making monthly installment agreement payments. Taxpayers should be encouraged to use one of the following electronic methods or credit card payments before accepting payment by check or money order:

    1. Electronic Federal Tax Payment System (EFTPS) – Taxpayers will select the "payment-due with IRS notice" payment type for posting to Masterfile with a TC 670. EFTPS has the ability to schedule payments up to 12 months in advance for individual taxpayers and up to 4 months in advance for business taxpayers. The taxpayer must initiate payments by sending instructions to EFTPS. (See IRM for complete instructions).

    2. Direct Debit installment agreements - If taxpayers maintain a checking account you should encourage them to take advantage of the direct debit installment agreement. (See IRM - .5 for Direct Debit procedures.)

    3. Payroll Deduction installment agreements - If taxpayers will not agree to a direct debit installment agreement, encourage them to take advantage of the payroll deduction agreement. (See IRM for Payroll Deduction procedures.)

    4. Credit Card installment agreement payment - See IRM for procedures for paying by credit card.

    5. Payment by check or money order - If payments are made by check, they should be payable to: "US Treasury" . However, checks made out to "Internal Revenue Service" or "IRS" will be processed.

  6. Certain taxpayers who enter into installment agreements on timely filed returns will have the failure to pay penalty reduced from a half to a quarter percent per month for any month in which an installment agreement is in effect. (IRM describes necessary inputs for TC 971 action codes.) Input of TC 971 AC 063 reduces failure to pay penalty from one half (0.5) to one quarter (0.25) percent per month if all of the following conditions are met:

    1. the installment agreement was entered into on or after January 1, 2000;

    2. the balances are due from an individual (whether IMF or BMF, due on income, employment or excise tax returns);

    3. the tax return(s) was timely filed, including extensions; and

    4. no CP 504, LT 11, or Letter 1058 was sent (indicated by a TC 971 AC 069), increasing the failure to pay penalty from one-half (0.5) to one (1) percent.


      If agreements are terminated, penalties increase to one-half (0.50) percent. Input of TC 971 AC 163 causes reversal of the reduction.

  7. See IRM — (d), regarding designation of payments during installment agreements.

  8. In discussing installment agreements, inform taxpayers that:

    1. penalties and interest continue to accrue on unpaid liabilities. Provide taxpayers with current percentage amounts and interest rates. If taxpayers request further information regarding penalties and interest, IRM 20.1.2, provides rates for IRC 6651(a)(1) "failure to file" and IRC 6651(a)(2) "failure to pay" penalties in its sections 2.3.1(2) and 2.4.1(2), respectively. IRM 20.2.6 provides interest computation information. The following SERP web site provides interest rates and tables:http://serp.enterprise.irs.gov/databases/irm-sup.dr/interest_rates.htm;

    2. there is an Installment Agreement User Fee - $105 for new agreements, $45 for reinstated agreements and $52 for direct debit installment agreements. (See IRM and IRM;

    3. low income individual taxpayers have the right to apply for a reduced user fee of $43 for entering into an installment agreement or a direct debit agreement. The low-income rate of $43 is charged to taxpayers based on the Reduced User Fee Indicator (RUFI) on Masterfile. Taxpayers will be charged the appropriate rate based on their income and exemptions on the last-filed return. The reduced user fee application, Form 13844, is available at www.irs.gov or by phone at 1-800-829-3676 for use if the taxpayers feel that their circumstances qualify them for the reduced user fee. The reduced user fee applies only to individuals (not to partnerships or corporations). There are no low income user fee reductions allowed to the $45 fee for reinstating or restructuring an agreement. Taxpayers will be informed of their right to apply for a reduced fee in the installment agreement acceptance letter. Inform taxpayers that Form 13844 must be submitted within 30 days of the date on the installment agreement acceptance letter. The contact employee will not make the determination of whether taxpayers qualify for the reduced user fee; that determination will be made when the Form 13844 is processed and validated. Once the Service determines that taxpayers qualify for the reduced fee, any amount of the fee collected in excess of $43 will be credited against taxpayers' Internal Revenue Code liabilities and thereby will reduce the amount of interest and penalties that might otherwise accrue;

    4. a notice of federal tax lien may be filed (see IRM and if a lien was previously filed, it remains on file;

    5. there is the possibility of a levy if the agreement is terminated;

    6. current returns for taxes must be filed and current deposits paid before an installment agreement can be approved and the taxpayer must remain tax compliant for the entire term of the installment agreement, or he/she will default the agreement. . (If applicable, remind the taxpayer of the obligation to make estimated tax payments to avoid accruing new tax liabilities, that would default their agreement); and,

    7. federal tax refunds will be offset (see IRM; and,

    8. there is a right to appeal proposed terminations of installment agreements, terminations of installment agreements and rejections of requests for installment agreements. (See IRM

  9. In accordance with law, each year the IRS mails Computer Paragraph (CP) 89, "Annual Installment Agreement Statement," to every installment agreement taxpayer. The statement provides:

    • the dollar amount of beginning account balance(s) due;

    • an itemized listing of payments;

    • an itemized listing of penalties, interest and other charges; and

    • the dollar amount of ending account balance(s) due.

  10. IRC 6502(a)(2)(A) provides that statutory periods for collection may be extended in connection with granting installment agreements. However, it is the policy of the Internal Revenue Service that CSED extensions are permitted only in conjunction with Partial Payment Installment Agreements and only in certain situations (See IRM  (03-04-2011)
Identifying Pending, Approved and Rejected Installment Agreement Proposals on IDRS

  1. Proposals to enter into installment agreements may result from letters, phone contacts, voice-mail, e-mail, or other communications between taxpayers and Service personnel. If proposals to enter into installment agreements are received by e-mail, do not respond by e-mail. E-mail responses violate the IRS Security Policy. In addition, do not solicit e-mails from taxpayers regarding installment agreements, or other tax collection or examination issues. All taxpayers have the right to request installment agreements. Requests for installment agreements, including those on unassessed modules, will be noted in the case history, and must be identified on IDRS within 24 hours.

  2. The following transaction codes (TC) and Action Codes (AC) will be used:

    • Pending Agreements: TC 971 AC 043 — for requests not immediately approved; and,

    • Approved Agreements: TC 971 AC 063 — for immediately approved requests.

  3. These inputs must be made within 24 hours of the request for, and identification of, installment agreements or pending agreements. These codes prevent levy actions. (See IRM — Levy Restrictions and Installment Agreements.) The inputs must be generated for the appropriate periods using the ICS application by selecting the "COLLECTION ACTIVITIES" menu from the Case Summary screen; then selecting "INSTALLMENT AGREEMENT"; and then selecting the proper code for input (either "GENERATE TC971 AC043" or "GENERATE TC971 AC063").

  4. Taxpayers need to provide specific information for installment agreement requests to be processed. Also, if the information in (a) through (d) below is provided, but it is determined that the agreement request was made to delay collection action, accounts should not be identified as being in pending installment agreement status. (See IRM To identify accounts as "pending" installment agreements, taxpayers must:

    1. Provide information sufficient to identify the taxpayer: generally, the taxpayer’s name and taxpayer identification number (TIN). If a taxpayer furnishes a name, but no TIN, and the taxpayer ’s identity can be determined, then pending status should be identified;

    2. Identify the tax liability to be covered by the agreement;

    3. Propose a monthly or other periodic payment of a specific amount;

    4. Be in compliance with filing requirements. (See IRM

  5. Requests that meet the criteria in IRM through (d) will be identified as pending installment agreements even if taxpayers are not in compliance with:

    • estimated (ES) payment requirements; or

    • federal tax deposit (FTD) requirements,

    unless the procedures in IRM apply.

  6. If a taxpayer does not provide all of the information in IRM through (d), ask the taxpayer for the missing information. For example, if no payment amount is specified, ask how much can be paid per month. A monthly payment amount must be specified for the account to be marked "pending" .

  7. Acceptance or rejection of proposed agreements is based on analysis of Collection Information Statements. (See IRM


    (1) If installment agreement requests are made to delay collection action, see IRM


    (2) Grant Streamlined, Guaranteed and In-Business Trust Fund Express installment agreements based on the criteria in IRM 5.14.5.

  8. The following Transaction Codes (TC) and Action Codes (AC) will be input on ALL taxpayer modules containing TC 971 AC 043 to indicate acceptance or rejection of proposed agreements:

    1. For Approved Agreements: request that TC 971 AC 063 be input to IDRS on ALL taxpayer modules.


      Agreements approved on ICS systemically input the TC 971 AC 063 to IDRS, so no action is necessary for those agreements.

    2. For Rejected Proposals: request reversal of TC 971 AC 043 forty-five (45) days after the rejection is communicated to the taxpayer, unless a timely appeal is received.

    3. For Appeals: during appeals, TC 971 AC 043 remains on all modules. If Appeals sustains a rejection, input TC 972 AC 043 thirty days after a rejection is communicated to the taxpayer. If Appeals grants an installment agreement, follow the procedures above for approved agreements.

  9. To identify trust fund recovery penalties as pending or approved installment agreements, the balance due account must be:

    • assessed; or,

    • Form 2751 must be executed by the taxpayer; or,

    • by approval of Form 4183 and issuance of Letter 1153.

  10. Examples of "Pending" and "No Pending (agreement)" are in IRM and the two charts below.



    (1) A taxpayer calls the IRS, provides her name, social security number (SSN), identifies the outstanding liability (or balances due), is in compliance with all filing requirements, fits streamlined installment agreement criteria and states she wants to pay $500 per month.


    (2) A revenue officer (RO) and taxpayer discuss the taxpayer’s financial statement (which includes the taxpayer’s name and SSN) on the phone. The taxpayer is in compliance with all filing requirements. The balances due are specifically identified. The RO says the taxpayer needs to pay $1500 per month. The taxpayer says he will think about it. The revenue officer mails the taxpayer a 433D. TP changes the amount on 433D and mails it back.


    Though in pending status, the agreement (and payment amount) must be approved, unless it is a Streamlined, Guaranteed or In-Business Trust Fund Express agreement. (See IRM 5.14.5.)


    (3) A taxpayer wants to make payments. RO completes Collection Information Statement (CIS) including the taxpayer’s name and SSN and tells the taxpayer $500 per month is appropriate. The taxpayer is in compliance with filing requirements. The taxpayer verbally agrees to the payment amount.



    (1) A revenue officer evaluates a taxpayer’s CIS. The taxpayer’s name, social security number and balances due are all known and/or identified. The revenue officer informs the taxpayer that a $1500 per month installment agreement is appropriate. There is no response from the taxpayer.


    (2) A revenue officer mails a 433D (with the taxpayer’s name, SSN and balances due listed) to a taxpayer. The 433D provides a payment amount based on an analysis of the taxpayer’s CIS. No response is received by phone, FAX, e-mail or other means of communication from the taxpayer.


    (3) A taxpayer who knows he owes taxes tells his employer to send $500 per month of his paycheck to the IRS. The taxpayer does not communicate with the IRS. The taxpayer’s employer sends $500 per month referencing the taxpayer’s SSN. (Note: if $500 per month is being received, contact should be attempted prior to taking collection action.)


    (4) A revenue officer begins a trust fund recovery penalty (TFRP) investigation. Meanwhile, an officer of the corporation states he wants an installment agreement, identifies the trust fund portion of the corporation’s liability (as the balance due account to be paid) and provides a specific payment amount (to be paid from his own funds and applied to the corporate liability – trust fund only.) However, no liability has been recommended for assessment and/or the officer has not signed Form 2751, indicating responsibility for the trust fund portion of the liability (i.e., there is no balance due account for payment application.) Therefore, the potentially responsible officer is informed that there is no pending installment agreement and payments made are considered voluntary. Information about designating these payments to the trust fund portion of a liability is provided in IRM (Also see IRM and IRM


    (5) A taxpayer wants to make payments on an installment agreement. The RO completes a CIS including the taxpayers name and SSN. RO tells the taxpayer $500 per month appears to be an appropriate amount for an installment agreement, but the taxpayer is not in compliance with filing his Forms 1040 for the last two years. The taxpayer states that his accountant is away, and that the returns, which are complicated, will take some time to prepare. The revenue officer requests that the taxpayer submit original, signed returns within 60 days, along with a $500 payment (based on the financial statement received). In addition, the revenue officer requests that a payment of $500 be received within 30 days. These requests are made in accordance with the procedures provided in IRM and IRM 5.1.10.  (06-01-2010)
Cases Received From ACS or Campuses

  1. If cases are assigned to the field from ACS or Campuses with Transaction Code (TC) 971 Action Code (AC) 043 present on one or more of the tax modules, employees will:

    1. Attempt to contact the taxpayer and determine if the taxpayer requested an installment agreement.

    2. If the taxpayer requested an installment agreement, follow the procedures in IRM regarding requesting payments. Include a definite request for payment, if appropriate. Consider the contact date to be the new request date and begin case action. If rejection is planned, an independent review is required. If the TC 971 AC 043 has not been input on all Balance Due periods, request input immediately.

    3. If the taxpayer did not request an installment agreement, request reversal of the TC 971 AC 043 using TC 972 AC 043 with the same date of input.

  2. In some situations the criteria regarding installment agreements made solely to delay collection action may apply. In these cases, if the current date is within 30 days of the input date of the TC 971 AC 043, and it is clear that one of the criteria provided in IRM is present, request input of TC 972 AC 043. Independent review is not necessary. Ensure case histories are documented with regard to the procedures provided in IRM  (06-01-2010)
Installment Agreement Acceptance and Rejection Determinations

  1. If taxpayers do not qualify for Guaranteed, Streamlined or In-business Trust Fund Express installment agreements, determine a plan for resolving the balance due accounts based on the Collection Information Statement (CIS) and supporting documentation provided by the taxpayer (See IRM and IRM 5.15).

  2. If taxpayers are currently unable to fully or partially satisfy balance due accounts, and an installment agreement will fully satisfy the balance due accounts (or accounts included in agreements provided by IRM, then installment agreements should be considered.

  3. There are no minimum nor maximum dollar limits for the amount of a liability that may be included in an installment agreement. However, see IRM regarding agreements for ≡ ≡ ≡ ≡ ≡ . Unless the agreement is "guaranteed" (per IRM, the installment agreement will not be accepted and such payments should be redirected to current withholding on the current year’s W-4.

  4. Installment agreements must reflect taxpayers’ ability to pay on a monthly basis throughout the duration of agreements.

    1. If taxpayers do not agree to payment amounts, or to increases, inform them that these and other issues (see IRM through (9)) may be discussed with the next level of management.

    2. Employees may choose to bring managers into discussions to assist in reaching agreements.

    3. If agreements cannot be recommended for approval, inform taxpayers that their requests are pending and that rejection of the request will be recommended, and refer the case for independent administrative review.

  5. Taxpayers do not qualify for installment agreements if balance due accounts can be fully or partially satisfied by liquidating assets, unless:

    • factors such as advanced age, ill-health, or other special circumstances are determined to prevent the liquidation of the assets; and/or,

    • they qualify for guaranteed or streamlined or Express agreements. (See IRM 5.14.5.)


    In appropriate circumstances, the taxpayer should be referred to TAS when the case meets TAS criteria. (See IRM, Taxpayer Advocate Case Criteria.)

  6. If taxpayers have the ability to fully or partially satisfy balance due accounts by:

    • using cash;

    • withdrawing cash from bank or other accounts;

    • borrowing on equity in real or personal property; or,

    • selling real or personal property, then:

    1. request full or partial payment (specify amount) be made on the balance due accounts.

    2. inform the taxpayer that the specific amount of payment requested is based on conversion of assets (through borrowing or selling); or cash or other liquid assets (such as securities or money market accounts); or other analysis of the taxpayer’s financial statement.

    3. inform taxpayers that installment agreements will be recommended for rejection if there is sufficient equity or cash available to fully pay the taxes and full payment is not received by a set date, or if there is sufficient equity or cash available to partially pay the taxes and the partial payment requested is not received by a set date.


      See IRM about providing deadlines.

    4. Provide a specific deadline for payment. In addition, notify taxpayers of the consequences of missing the deadline. (See IRM for additional information.)


      If a taxpayer has the ability to pay $3,000 per month on a $200,000 liability and has a home valued at $400,000 with equity of $200,000, require that he attempt to borrow on the available equity in the home prior to granting an installment agreement. If the taxpayer does not attempt to borrow on the home he must be notified that, though the installment agreement request is pending, it will be recommended for rejection. If the taxpayer is able to get a home equity loan and the monies are used to pay taxes, the amount of the payment on the loan will be considered an allowable expense.


      If taxpayers are eligible for Streamlined, Guaranteed or In-Business Express agreements, financial statements are not required. (See IRM, IRM, or IRM


    Do not warn taxpayers of enforcement action if installment agreements are pending or in effect. (See IRM for additional information.)

  7. Installment agreements may be granted if taxpayers make payments on balance due accounts that reduce the unpaid balance(s) of assessments (UBAs) to amounts that fit streamlined criteria.


    If a taxpayer has equity in assets and cash that total $100,000 and owes $40,000 (UBA) in taxes, request full payment of the balance due accounts. If the taxpayer makes payments that reduce the aggregate unpaid balance of assessments (SUMRY) to $25,000 and requests a streamlined installment agreement, the agreement may be granted.

  8. If an analysis of the taxpayer’s financial condition shows taxpayers cannot pay but:

    • they insist on installment agreements;

    • amounts proposed will fully pay the balance due account(s) within the collection statute (and waiver period if appropriate);

    • the possibility remains that payments cannot be made;

    then prepare a backup Form 53 along with the installment agreement in case of eventual default and termination. (See Exhibit 5.14.1–2 and IRM


    If the amounts proposed by the taxpayer will not fully pay the balance due account(s) within the collection statute then Partial Payment Installment Agreements (PPIA) may be considered. (See IRM

  9. If analysis of the taxpayer’s financial condition shows a liability cannot be collected in full through an installment agreement, discuss the possibility of a PPIA or an Offer in Compromise (OIC) with the taxpayer. (See IRM 5.8 and IRM

  10. See IRM regarding Independent Administrative Review if installment agreement requests are recommended for rejection.

  11. See IRM regarding consideration of revised proposals received during the rejection appeal period.

  12. See IRM and IRM if taxpayers qualify for installment agreements or offers in compromise but:

    • do not submit or request one; or;

    • do not agree to an acceptable payment amount.


      Also see IRM


    Although the intention to recommend rejection should be relayed, actual rejection of proposed agreements must not be conveyed to taxpayers prior to independent administrative review, and enforcement action may not be taken while installment agreements are pending.

  13. For agreements that require no managerial approval, see IRM,, and IRM . For agreements that require management approval, see IRM, and IRM  (03-04-2011)
Compliance and Installment Agreements

  1. Filing and paying compliance must be considered prior to determining that the best manner of paying delinquent taxes is through an installment agreement.

  2. Ensure all balance due modules, including cross-referenced taxpayer identification numbers, displayed on IDRS (SUMRY, which includes Status 22, 23, 24, 26, 53 and 58). are included in agreements. Verify by checking the applicable CFOL commands .The Initial Analysis Tool (IAT) is a useful tool for verifying compliance. (See IRM for necessary information and IRM for exceptions.)

    1. Individuals that are in business as sole proprietors must be in compliance with both individual and business filing requirements to qualify for installment agreements.

    2. An individual that is identified as the liable taxpayer for a single member limited liability company (LLC) must be in compliance with both individual and business filing requirements to qualify for installment agreements.

    3. A corporation, partnership, trust, estate or other entity that is identified as the liable taxpayer for a single member LLC must be in compliance with all filing requirements for both entities to qualify for installment agreements.

    4. If taxpayers have delinquent accounts on two or more taxpayer identification numbers (SSN and EIN, or two EINs), all balance due accounts must be included in one agreement. (See IRM for exceptions and IRM and IRM for monitoring.)


      For certain single member LLCs, different entities may be liable for separate tax periods assessed in the same name and EIN. (See IRM 5.1.21, Collecting from Limited Liability Companies and IRM 5.14.7, BMF Installment Agreements.).

    5. Modules in Status 22, 23, 24, 53 or 58 on IDRS must either be TSIGNed or create ICS Bal Due modules prior to submitting the IA for approval and input.


      If a status 53 module(s) is to be excluded from the installment agreement listed in IRM,Installment Agreements When Owner (SMO) and LLC are liable for Assessments in the LLC Name, make an ICS history notation in the Closing Narrative. This history notation will alert Centralized Case Processing (CCP) to exclude these modules from the IA.

  3. Taxpayers must be in compliance with all filing requirements prior to approval of installment agreements.


    Ensure all Del Rets are shown as closed on IDRS and in status "D" on ICS PRIOR to selecting one of the Option A systemic upload IA types (Routine, Streamlined, IBTF Express, IBTF). If the Del Ret is not in a closed status on IDRS and ICS, the IA request will reject.

  4. Do not grant installment agreements if taxpayers have not filed required returns. Do not identify requests for agreements as "pending" agreements if taxpayers have not filed required returns. (See IRM

  5. A Del Ret is present when a delinquency investigation is established by input of Transaction Code (TC) 140. In some publications and procedures the term "Taxpayer Delinquency Investigation" (TDI) is used to describe Del Rets.

  6. If Del Ret status is not indicated for a tax period then, for the purpose of granting an installment agreement, no additional compliance check is required (except on tax returns due within the past sixteen months). (See IRM

  7. Prior to granting IAs, ensure that tax returns due within the past sixteen months were filed. If not filed, address compliance even if a Del Ret is not indicated using the procedures provided in IRM This ensures compliance is addressed when Del Ret case creation has not yet occurred. Del Rets are created within sixteen months of due dates of returns.

  8. If Del Rets were resolved by one of the following methods, the closure is not considered evidence of compliance for the purposes of entering into an installment agreement:

    1. surveyed;

    2. shelved;

    3. unable to locate;

    4. referred to Exam or SFR (unless the assessment is pending or the case is assigned);

  9. If Del Rets were resolved by a closure listed in IRM – d, but it is determined that they could have been closed as provided in IRM, then input (or request input of) appropriate transaction and closing codes. In these situations installment agreements may be granted when closing Del Rets.

  10. If an installment agreement is the appropriate case resolution, and there is an open Del Ret on another tax module(s); then the installment agreement may be granted when:

    1. Tax return(s) indicated as due are filed.

    2. Del Rets are resolved using the dispositions listed in IRM

    3. Del Rets are resolved using the dispositions listed in IRM

  11. Installment agreements may also be granted when the following closures are present:

    1. No return secured – little or no tax due (Policy Statement P-5-133);

    2. No return secured – taxpayer due refund.


      If the taxpayer is due a refund, which still may be credited within the refund statute, inform the taxpayer to file the refund return before the refund statute expires to reduce the balance due on the installment agreement.

  12. If taxpayers are not required to file returns, such modules should be closed using appropriate transaction and closing codes. The return closing codes that indicate filing compliance, or that filing is not required are contained in IRM 5.3. Also see Document 6209 Chapter 11 for definitions.

  13. If taxpayers are required to file returns and these returns are not filed, installment agreements cannot be granted or approved. See IRM for closing procedures for delinquent return accounts. Also see Document 6209 Chapter 11 for definitions.

  14. If Del Rets were closed with a transaction code that does not indicate filing compliance, request that returns be filed within a reasonable timeframe.

  15. See IRM for exceptions and guidance regarding the filing of returns.

  16. Compliance checks based on case information:

    1. Except in those situations described in IRM and IRM above, further compliance investigation is neither required nor prohibited, if Del Ret status is not indicated on IDRS. In addition, unless there is a Del Ret, no CFOL review (and no IRPTR review) is required.

    2. If further research is conducted and there is an indication a return is due, then address filing compliance prior to granting installment agreements. Installment agreements may not be granted if it is determined taxpayers are liable for unfiled Balance Due returns. (P-5-133, refund return determinations and the dispositions provided in IRM are permitted in these situations, if determined appropriate after further investigation.)

  17. The compliance checks described in this section are conducted to determine eligibility for installment agreements after they are requested by taxpayers. If taxpayers do not file the requested returns by the provided deadlines (and the circumstances described in IRM do not apply) requests for agreements will not be identified as pending (rejection and independent review are inapplicable) and agreements will not be granted.

  18. Analyze the current year’s anticipated tax liability. If it appears a taxpayer will have a balance due at the end of the current year, the accrued liability may be included in an agreement (see IRM Compliance with filing, paying estimated taxes, and federal tax deposits must be current from the date the installment agreement begins. Use Agreement Locator Number (ALN) XX32. (See Exhibit 5.14.1–2)

    1. If the taxpayer’s withholding is insufficient, emphasize the importance of adjusting Form W–4 to avoid future balance due situations. If personal (face-to-face) contact with the taxpayer is made, calculate the current amount of withholding with the taxpayer. With the taxpayer’s concurrence, prepare a new Form W–4 for signature. Mail the signed Form W–4 to the taxpayer’s employer.

    2. Advise taxpayers to make estimated tax payments and/or federal tax deposits (FTDs) if required;

    3. Advise taxpayers that failure to make timely estimated tax payments and/or FTDs may result in penalties;

    4. Advise taxpayers that future compliance with tax laws is required. Any returns and/or taxes due within the period of the agreement must be filed and paid timely;

    5. Advise taxpayers that federal tax refunds are subject to offset to pay balance due accounts during installment agreements, including refunds from income taxes of individuals whose sole proprietorship or partnerships owe taxes and have installment agreements. (In these cases, ensure TC 130 is input for the appropriate social security number(s).)

    6. Advise taxpayers that if the owner of a single member LLC is identified as the liable taxpayer, any federal tax refunds payable to the owner are subject to offset to pay balance due accounts during installment agreements, including refunds from income taxes of an individual, corporation, or other entity where the owner owes taxes and has an installment agreement. (In these cases, ensure TC 130 is input for the appropriate social security number(s) or employer identification number(s).)  (03-04-2011)
Notice of Federal Tax Lien and Installment Agreements

  1. Prior to granting installment agreements, ensure the government’s interest is protected. This includes filing and refiling Notices of Federal Tax Lien (NFTL), if necessary. (See IRM 5.12.2 for lien filing instructions.)

    1. A lien determination must be made on all cases meeting the criteria of IRM (In general, accounts that do not qualify for guaranteed or streamlined processing require lien determinations.)

    2. When filing a NFTL in connection with an installment agreement advise taxpayers in advance of the plan to file the lien and give them the opportunity to make full payment.

  2. Notices of federal tax lien may be filed:

    • while installment agreements are pending;

    • in connection with granting installment agreements;

    • during the rejection process; and

    • during the default/termination period.


      See IRM and IRM regarding filing notices of federal tax lien during defaulted and/or terminated installment agreements.

  3. Though it is not general practice to do so, liens may also be filed:

    • while installment agreements are in effect; and

    • during appeals of rejections, defaults and terminations. (Inform Appeals of this plan.)


      Group manager approval is required for liens filed in accordance with (3) above. Review IRM prior to filing these Notices of Federal Tax Liens.

  4. If a NFTL will be required on pre-assessed tax period(s), the request for lien filing must be manually submitted on Form 12636, Request for Filing or Refiling Notice of Federal Tax Lien to the Centralized Lien Unit (CLU) once the tax period is assessed. CCP will NOT hold or process any request for NFTL filing on a pre-assessed period submitted with an installment agreement.  (03-04-2011)
Increases, Decreases, Varied Payment Amounts; Completing and Processing Installment Agreements

  1. The amount of the taxpayer’s payment depends on his or her ability to pay. (See IRM

    1. Only equal monthly installment payments can be monitored on IDRS. However, inform taxpayers that extra payments or higher payments can be accepted at any time.

    2. Space is provided on Form 433–D, Installment Agreement, and Form 2159, Payroll Deduction Agreement, for scheduled increases or decreases in payment amounts. IDRS will accept two changes in payment amounts when agreements are input for systemic monitoring. Agreements must be manually monitored if more than two changes in payment amount are planned. Document reasons for scheduled increases or decreases. Reasons can include expected full payment of a loan that will increase the taxpayer’s ability to pay; income is scheduled to increase or decrease; or necessary living expenses are scheduled to increase or decrease. (See IRM

  2. Agreements may include an increase of one or two large payments to fully or partially pay accounts if it is documented and verified taxpayers will receive funds to make the payments. These payments may be represented as increases in the installment payment amount as discussed in IRM Situations that may call for this type of agreement include:

    • contract sales with determined payment date(s);

    • judgments resulting in fixed settlement and payment dates;

    • beneficiary, distributee or payee status in trusts, estates, or profit sharing plans resulting in expected payment(s) on certain date(s);

    • accrued equity in assets from which taxpayers plan to borrow when the monthly payment is scheduled to increase; and

    • other projected receipts of funds.

  3. Payment schedules may incorporate varied payments. Support varied payment schedules with documentation. Examples of reasons for varied payment schedules include, but are not limited to:

    • anticipated fluctuations in business cycles for businesses or "commission" employees;

    • contract employment;

    • self employment;

    • seasonal employment;

    • seasonal expenses (for example, child-care costs when school is out); and,

    • planned (scheduled) changes in employment status, such as plans to work part-time, or reduced schedules, especially if the changes are made in order to facilitate a parent staying home with children, even if this means making numerous changes to monthly payment amounts over a period of time.

  4. For all agreements: request that taxpayers select a day of the month, from the 1st through the 28th, for the payment due date. Advise taxpayers:

    1. on IDRS monitored agreements, a monthly payment reminder notice (CP 521) will be mailed to taxpayers two cycles before each payment due date. A pre-addressed envelope is included with the notice;

    2. to send payments according to the terms of agreements, even if no reminder notice is received;

    3. in the absence of pre-addressed envelopes, payments can be mailed to the campus address that services the area, i.e. Internal Revenue Service, city, state and zip code of appropriate SB/SE or W&I campus;

    4. names, tax identification number and tax forms included in the agreement must be written on the front of checks. Checks should be payable to US Treasury. (See IRM and note that installment agreement payments may not be designated. (See IRM

  5. Assign Agreement Locator Numbers (ALNs) in accordance with Exhibit 5.14.1–2. Use a multiple condition ALN when appropriate. (Also see IRM 5.14.9, Routine and Manually Monitored Installment Agreement Dispositions, Independent Review and Appeals.)

  6. List levy source information, including complete addresses and ZIP codes on installment agreement forms.

  7. An installment agreement must be in writing. A written installment agreement may take the form of a document signed by the taxpayer and the Commissioner (Form 433-D) or a written confirmation of an agreement entered into by the taxpayer and the Commissioner that is mailed or personally delivered to the taxpayer (Letters 2849 or 2850).


    Agreements approved using the ICS application will generate the appropriate written confirmation (Letters 2849 or 2850). It is the revenue officer's responsibility to mail or deliver the letters to the taxpayer. The form 433-D needs to be signed by the taxpayer only in direct debit agreements.

  8. Taxpayer signatures must be secured on all Forms 2159. (See IRM Also, though taxpayer signatures are generally not required on Forms 433–D,

    • signatures on Form 433–D are required for direct debit agreements (attach a voided check OR on the Form 433-D document the account number and bank routing number for processing); and

    • they may be obtained when taxpayers are available during personal contact.

  9. Agreements that call for payments less than ≡ ≡ are considered "below deferral level" . (See IRM for agreements on below deferral level taxpayers.)

  10. Approval authority for installment agreements is provided in IRM 5.14.9. If approval cannot be secured while taxpayers are present advise them proposed installment agreements must be approved. (See IRM regarding requests for payments in the interim, and IRM regarding necessary inputs to IDRS.) Submit agreements for approval before any payments are due. If there are delays in the approval process notify taxpayers.

    1. Fully consider taxpayers’ rights and interests prior to recommending rejection of an installment agreement request. Consider all aspects of the request including circumstances presented by taxpayers that they claim support the acceptance of the agreement; information taxpayers provide in support of approving the agreement; and the independent review criteria described in IRM and IRM Although taxpayers should be informed if the rejection of the agreements is being recommended, do not convey actual rejection of proposed agreements prior to independent administrative review except in the limited situations described in IRM below. (Also see IRM, regarding the independent review process.)

    2. If additional information or action is required (for instance an attempt to borrow is requested) then request the necessary information or action from the taxpayer and establish a reasonable action date. Explain the consequences of failure to comply with the request. If an action date is missed, refer the case to the independent administrative reviewer prior to conveying rejection of the proposed agreement to the taxpayer. In general, no enforcement action may be taken as a consequence of such missed action dates, unless the situations described in IRM or in IRM 5.14.3 are present. (See also IRM regarding Independent Administrative Review.)

    3. While meeting or speaking with taxpayers, if they do not agree to payment amounts, or to increases in payments, advise them that a meeting with the next level of management may be requested. Also, employees may include managers in discussions about installment agreements with taxpayers, if it assists them in finalizing agreements. If approval of an agreement is not planned, inform the taxpayer that the status of the agreement is "pending" , and rejection will be recommended and that rejected requests may be appealed. Then refer such cases for independent administrative review. (See IRM

  11. Inform taxpayers failure to pay penalty is reduced on installment agreements if certain conditions are met. (See IRM  (03-04-2011)
Installment Agreements with Pre-assessed Modules

  1. If an installment agreement is for pre-assessed and prompted modules only, forward the file to Centralized Case Processing on Form 3210. These types of agreements cannot be systemically uploaded from ICS to IDRS. Pre-assessed agreements may be input to IDRS by Centralized Case Processing, before the assessment is made, via IDRS command code IAPND. Although this generally precludes the need for manual monitoring of these accounts, pre-assessed installment agreements may be monitored by Centralized Case Processing until all periods are assessed. These agreements are sent to CCP for processing at the following address:

    Internal Revenue Service
    2970 Market Street
    Mail Stop 5-E04.114
    Philadelphia, PA., 19104

    The 433-D can also be e-mailed to the appropriate CCP mailbox.

  2. Using Option A on ICS, installment agreements which include both assessed (ST. 26) and pre-assessed modules, can be systemically uploaded from ICS to IDRS. However, in order for the pre-assessed module to be included in the IA, you must complete the ICS template version of the Form 4844. In the "Remarks" section of this form include the following statement: "Please update ENMOD history to include pre-assessed module(s) xx-xxxxxx in installment agreement." Respond "Yes" to having the document e-mailed to CCP. ICS will prompt you to complete the Form 4844 prior to saving the IA request..

  3. Compliance Service Collection Operation (CSCO) is responsible for adding pre-assessed modules to agreements when they post and the accounts appear on the Installment Agreement Accounts List (IAAL).


    ICS will automatically select the correct ALN when an agreement has more than one condition. The highest priority value will be used for the "YY" indicator. A "YY" Indicator of "32" identifies pre-assessed modules are included in the agreement.

  4. Option B on ICS can also be used for requesting input of installment agreements with both assessed and pre-assessed modules. Use the systemically generated F3210 to send the IA to CCP for processing at Mail Stop 5-E04.114. Use Installment Agreement Locator Number XX32. (See Exhibit 5.14.1–2.) Ensure all account balances included in agreements will be fully paid prior to CSEDs plus allowable extensions. (See IRM See IRM for information on partial payment installment agreements.  (03-04-2011)
Levy Restrictions and Installment Agreements

  1. No levy may be made on taxpayer accounts:

    1. while requests for installment agreements are pending;

    2. while installment agreements are in effect;

    3. for 30 days after requests for agreements are rejected;

    4. for 30 days after agreements are terminated; and

    5. while an appeal of a default, termination or rejection is pending or unresolved.


      Criteria for identifying "pending" agreements are in IRM

  2. Levies may be served during the periods described in IRM above:

    1. if taxpayers waive the restriction in writing (see Exhibit 5.14.1–3);

    2. if collection is in jeopardy (i.e., if a condition allowing a jeopardy assessment exists.) In these situations CP 523 (Letter 2975 for MMIAs) is not required. Unless notice of the right to appeal was previously provided, taxpayers must be notified of their appeal rights after jeopardy levies. (See Policy Statement P–4–88 found at IRM for a list of conditions under which a jeopardy assessment will be made. See also IRM and Exhibit 5.11.1–1 for approval levels for jeopardy levies. Approval level depends on whether notices described in IRM were sent, and if required waiting periods have passed);

    3. for balance due accounts not included in current installment agreements. (The new tax periods are not affected by the appeal period for defaulted installment agreements.)


      In this context, "current" installment agreements include those in IDRS status 64 (default) because they remain in status 60 on Masterfile for the 13 cycles they are in status 64 on IDRS (until terminated and removed from status 60). Also, CDP notices and timeframes must be provided to taxpayers on all balance due accounts before levies are served. See IRM (regarding partial payment installment agreements) and IRM (regarding pre-levy actions).


      The taxpayer has an installment agreement for payroll taxes for the periods ending September 30, 2005, and December 31, 2005. The period ending March 31, 2006, is not included in the installment agreement and now has a balance due and all appropriate due process notices were mailed. The default Letter 2975(DO) has been sent on the periods in the installment agreement, but 90 days have not passed. In this example, although levies may not be served for those tax periods included in the agreement, levies may be sent to levy sources to collect on the balance due for the period ending March 31, 2006.

  3. If an installment agreement is identified as pending ,and a levy is outstanding, it may be released, but it is not required that such levies be released. If an installment agreement is approved, and there is a levy outstanding, it must be released, unless the agreement provides otherwise. If an outstanding levy will remain in effect during an installment agreement, document this in the "Additional Conditions" block of the agreement form. (See IRM


    (1) A levy has attached funds in the taxpayer’s bank account and an installment agreement is prepared before the proceeds are received. If it is decided, with concurrence of the taxpayer, not to release the levy, this must be written in the Additional Conditions block of Form 433–D.


    (2) If a wage levy is to remain open while a taxpayer is making installment payments, it must be written in the "Additional Conditions" block of Form 433–D that the levy is to remain in effect until the liability is satisfied (or the levy is released).


    If the levy is to collect on a balance due account that is not included in an installment agreement, then no release is required.  (03-04-2011)
Multi-functional Installment Agreement Authority

  1. IRM 5.14, Installment Agreements, is primarily for use by Collection contact personnel. In addition, it is referenced by other functions for installment agreement policy and procedures. This section provides cross-functional authority to grant installment agreements and references actions necessary in the installment agreement process. Collection personnel should reference this section to learn about other functions’ installment agreement authority, and the types of assistance other functions may request.

  2. The authority to grant installment agreements has been extended to other contact functions within the Service to improve one-stop service, reduce taxpayer burden, encourage voluntary compliance and utilize resources more effectively. The functions are: Appeals, Tax Exempt and Government Entities, Examination, Taxpayer Advocate Service, Submission Processing, and Field Assistance.


    IRM 5.19 provides procedures for Campuses, ACS and toll-free.

  3. Multi-functional installment agreement authority is limited to certain types of accounts with an aggregate unpaid balance of assessment less than or equal to ≡ ≡ ≡ ≡ ≡ .

    1. The types of accounts this authority is limited to are individual accounts, corporate or LLC accounts in which the only open periods are Form 1120 modules, and out of business sole proprietor or LLC accounts where the owner of the LLC is identified as the liable taxpayer.


      (1) The limitation on dollar amount does not apply to agreements Appeals can consider under Collection Due Process or the Collection Appeals Program. (See IRM 8.24.1.)


      (2) Multi-functional installment agreement authority does not extend to granting agreements in accordance with the procedures provided in IRM, Partial Payment Installment Agreements.

    2. See streamlined installment agreement procedures for accounts with an aggregate unpaid balance of assessments (SUMRY) less than or equal to $25,000 in IRM

    3. See guaranteed installment agreement procedures for accounts with income tax of $10,000 or less, in IRM


      This authority is limited to individual income tax accounts.

    4. See In-Business Trust Fund Express for accounts with an entire liability including accruals (INTST) of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , in IRM


      This authority is limited to in-business BMF accounts.

  4. Multi-functional authority to grant Full Pay Within 60 or 120 Day Agreements (Formerly Extension of Time to Pay) is limited to accounts with aggregate unpaid balances of assessment less than or equal to ≡ ≡ ≡ ≡ . These agreements may be granted for up to 120 days (Collection Field function employees do not have the authority to grant Full Pay Within 60 or 120 Day Agreements (Formerly Extension of Time to Pay)). (See IRM regarding instructions for SB/SE Campus employees.)

  5. The multi-functional installment agreement authority levels apply to assessed and pre-assessed accounts including taxpayers who state an inability to pay when they file their return timely or late.

  6. If taxpayers do not qualify for guaranteed, streamlined or Express installment agreement processing, a CIS is required. Financial analysis may be done by the function initiating the agreement if sufficient expertise exists. (See IRM 5.15 regarding financial analysis.)

  7. Financial statements—on those cases which do not qualify for guaranteed, streamlined, or Express processing —require verification of income and expenses. Verification may be done by the function initiating the agreement if sufficient expertise exists. Research of local property records regarding real property, personal property and motor vehicle ownership is not required.

  8. See IRM regarding lien filing. Lien filings will be requested from the Collection function on Form 12636, Request for Filing or Refiling Notice of Federal Tax Lien.


    If a Notice of Federal Tax Lien (NFTL) is to be filed, the taxpayer must have been advised in advance.

  9. If the function initiating the agreement is not able to conduct financial analysis or verification, assistance will be sought from Collection personnel, or the taxpayer will be referred to Collection. The function initiating the agreement may assist the taxpayer in completing the CIS before referring the taxpayer to Collection.

  10. Upon identification of an installment agreement request, the case-file will be noted that an installment agreement is "pending." (See IRM regarding criteria necessary for identification of "pending" status.)

  11. If a CSED extension is appropriate see IRM

  12. Installment agreements will be approved by functions that initiate agreements. Completed forms will be routed as follows:

    1. All field functions initiating installment agreements will route completed forms to Centralized Case Processing.

    2. Appeals may input installment agreements secured within its function according to local guidelines.

    3. If the function initiating the agreement is not located in an area office or has made arrangements to send completed forms directly to a Campus, then completed forms will be routed to Compliance Service Collection Operation (CSCO) for processing.

    4. If a Campus secures an original installment agreement and Form 900 waiver, copies of both forms will be forwarded to Centralized Case Processing.

  13. If an account does not fall within the multi-functional guidelines or a function is unable to grant an installment agreement for any reason, assistance will be sought from the Collection function or the taxpayer will be referred to Collection.

  14. If the proposed installment agreement cannot be granted due to the taxpayer ’s noncompliance to deposit or estimated tax payment requirements, failure to file required returns, or failure to provide information, (within a reasonable deadline); then the procedures in IRM and IRM should be followed before the case is referred to field revenue officer groups. See IRM

  15. Local procedures should be developed by SB/SE Area Collection functions to accommodate other functions seeking assistance. Collection is responsible for the administration of installment agreements.

  16. Examination employees who receive an installment agreement request from a taxpayer should follow the procedures in IRM .

Exhibit 5.14.1-1 
Input of Transaction Code 971 Action Codes 043 and 063 for Pending and Active Installment Agreements

(1) These procedures apply to area offices, campuses and Automated Collection System (ACS) Call sites. Directors will designate employees responsible for specified inputs at a central location, or at the group, team, or unit level. Responsible functions must be continuously available to receive telephonic requests for input of TC 971, Action codes 043 & 063, during core business hours. Requested transaction codes must be input to IDRS immediately upon the request of contact employees.
(2) For Pending Agreements:
  a) Request TC 971 Action Code 043 be input to IDRS on ALL modules for which the taxpayer is liable within 24 hours.
  b) If there are tax modules (accounts) that are not on IDRS (But are on Masterfile), request input of TC 971 AC 043 separately on these.
  c) Do not input TC 971 AC 043 for immediately approved agreements. (See "Approved Agreements" below.)
(3) For Approved Agreements:
  a) Request that TC 971 Action Code 063 be input to IDRS on ALL modules for which the taxpayer is liable.
  b) For the purpose of this sub-section, approved agreements are only those agreements that are approved on the date the agreement is requested.
  c) If agreements are immediately approved there is no need to input TC 971 AC 043 for the period of time between the request for the agreement and the time it is approved.
(4) For Rejected Proposals/Appeals:
  a) Request reversal of TC 971 AC 043 forty-five (45) days after the rejection is communicated to the taxpayers, unless during the 30 day period the rejection is appealed.
  b) During appeals, TC 971 AC 043 remains on all modules included in the proposed installment agreement.
  c) If Appeals sustains rejections, input TC 972 AC 043 (if 30 days have passed) or 30 days after rejection is communicated to taxpayers.
  d) If Appeals grants installment agreements, follow the procedures above for approved agreements.
(5) For Defaulted and Terminated Agreements:
  a) IDRS:
    systemically reverses TC 971 AC 063 when there is a change from status 6X to any Masterfile status other than Status 26. This systemic reversal excludes the following types of I/AS: IBTF-Express, IBTF-IA, DDIA IBTF- Express, and DDIA IBTF-IA.
    generates TC 971 AC 163 to reverse TC 971 AC 063.
  b) Status 64 on IDRS remains in status 60 on the Masterfile for thirteen cycles. This provides taxpayers levy protection.
  c) During the first 30 days of Status 64 taxpayers may appeal proposed terminations to the Appeals Division.
  d) Taxpayers may also appeal terminations of agreements for 30 days from the date agreements are terminated. (See IRM regarding defaulted and terminated agreements.)
(6) Note to ICS Users: Input of TC 971 ACs 043 and 063 can be generated on ICS using the Installment Agreement menu. These transactions will upload from ICS to IDRS. Any notice accounts or other accounts not in Status 26 should be created on ICS so that the transaction codes can be properly generated.
(7) The following transaction/action codes identify — and reverse identification of — pending and active installment agreements:
Transaction Code Action Code Definition
971 043 Identifies pending installment agreement.
972 043 Reverses identification of pending installment agreement (reverses TC 971 AC 043).
971 063 Identifies active installment agreement.
971 163 Input to reverse identification as Active Installment Agreement (reverses all TC 971 AC 063s).
972 063 Input to reverse identification as Active Installment Agreement when TC 971 AC 063 was input in error.
(8) Status 60, TC 971, IDRS, Master File (MF) interface information:
  a) TC 971 AC 043 must be manually requested for input to IDRS for pending agreements.
  b) TC 971 AC 063 is generated by status 60, or may be manually input to IDRS.
  c) Any change from 6X (60, 61, 64) to any Masterfile status other than Status 26 generates TC 971 AC 163.
  d) Status 64 DOES NOT generate TC 971 AC 163. While accounts are in IDRS status 64, they remain in MF status 60. (See (5) above.)
  e) When TC 971 AC 163 is input, in addition to reversing TC 971 AC 063, it reverses TC 971 AC 043 (if a TC 971 AC 043 is present).
  f) If TC 971 AC 063 is not present, use TC 972 AC 043 to reverse TC 971 AC 043.
  g) TC 972 AC 063 reverses an erroneous input of TC 971 AC 063.

Exhibit 5.14.1-2 
Installment Agreement Locator Numbers — (ALNs)

Designate 4 digit ALNs to identify installment agreements by type and originator. The XX Position (first two digits) denotes either "Initiator" or "Agreement Type." XX values are:
00 Form 433–D initiated by AO on an ACS case
01 Customer Service Toll-Free initiated agreements
02 AO Field Territory (revenue officer) initiated agreements
03 Direct Debit agreements initiated by any function
06 Exam initiated agreements
07 Submission Processing initiated agreements
08 Agreements initiated by other functions
11 Form 2159 (Payroll Deduction Agreement) initiated by any AO, ACSor Customer Service
12 AO or ACS agreement with multiple conditions
20 Status 22/24 accounts — Call Site/CSCO
90 CSCO initiated agreements — other than status 22 or 26
91 Form 2159 agreement initiated by CSCO
92 CSCO agreement with multiple conditions
99 Up to 120 day extensions (NOT FOR FIELD)
The YY Position (second two digits) denotes "Agreement Conditions." YY values are:
08 Continuous Wage Levy (From ACS and RO)
09 All other conditions
12 Partial Payment Installment Agreement (PPIA) all functions
15 In-Business Trust Fund (IBTF) monitoring required for all functions
27 Restricted Interest/Penalty Condition Present
32 Unassessed modules to be included in agreement
36 Streamlined agreements
41 BMF IN Business Deferral Level (CSCO USE ONLY)
53 Report Currently Not Collectible if agreement defaults
63 Cross-Reference TIN (Status 63)
66 File Lien in event of default
70 Secondary TP responsible for Joint Liability
80 Review and revise payment amount
99 Full Payment Request; this is not an installment agreement (NOT FOR FIELD)
If more than one condition exists, ICS will systemically use 12 in the XX position: Exception: When any DDIA IA selection is made regardless of any other YY choices, ICS will systemically use 03 in the XX position.
1) 63 (XREF TIN)
2) 12 (PPIA)
3) 53 (CNC)
5) 15 (IBTF)
6) 27 (Restricted Interest/Penalty Condition Present)
7) 36 (Streamlined)
8) 66 (File lien in event of default)
9) 70 (Secondary TP responsible for joint liability)
10) 80 (Review and revise payment amount)
The highest priority value will be used for the YY indicator. If multiple conditions exist, and one of the above conditions is used in the YY position, all other selected values will be systemically written in the Additional Conditions section of the Form 433-D and in the ICS history. This information will NOT be included in the additional conditions section of the taxpayer's letter (L2850 or L2849). The cross-reference TIN information will be printed on the letter.

Exhibit 5.14.1-3 
Waiver of Restriction of Levy During a Pending or Active Installment Agreement

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Exhibit 5.14.1-4 
Installment Agreement Originator Codes

20 Collection field function regular agreement
21 Collection field function streamlined agreement
30 Reserved
31 Reserved
50 Field assistance Counter regular agreement
51 Field assistance Counter streamlined agreement
60 Examination regular agreement
61 Examination streamlined agreement
70 Toll-free regular agreement
71 Toll-free streamlined agreement
72 Paper regular agreement
73 Paper streamlined agreement
74 Voice response unit (system generated)
75 Automated Collection Branch Regular
76 Automated Collection Branch Streamlined
77 Automated Collection Branch voice response unit regular (system generated)
78 Automated Collection Branch voice response unit streamlined (system generated)
80 Other function regular agreement
81 Other function streamlined agreement
82 Electronic Installment Agreement (e-IA) - AM
83 Electronic Installment Agreement (e-IA) - ACS
90-91 Reserved for vendors-all streamlined agreements

Exhibit 5.14.1-5 
Installment Agreement Table

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