Skip to main content
 

Part 5. Collecting Process

Chapter 14. Installment Agreements

Section 5. Simple Payment Plans, Guaranteed Installment Agreements, and Simple Payment Plans (Business Trust Fund)

5.14.5 Simple Payment Plans, Guaranteed Installment Agreements, and Simple Payment Plans (Business Trust Fund)

Manual Transmittal

July 21, 2026

Purpose

(1) This transmits a revision to IRM 5.14.5, Installment Agreements - Simple Payment Plans, Guaranteed Installment Agreements, and Simple Payment Plans (Business Trust Fund)

Material Changes

(1) Refer to the table below for details on the list of material changes in this IRM.

IRM Subsection Description of Change
IRM 5.14.5.1 Revised the purpose statement in paragraph (1) to add Simple Payment Plans.
IRM 5.14.5.1 Revised paragraph (5) to update the list of primary stakeholders by adding the Independent Office of Appeals.
IRM 5.14.5.1.1 Revised paragraph (1) to add Simple Payment Plan and Simple Payment Plan (Business Trust Fund) criteria; stated when a CIS is not required, and clarified paragraph (2) regarding filing and payment requirements.
5.14.5.1.3 Revised the subsection title from “Responsibilities” to “Roles and Responsibilities” to comply with IRM 1.11.2.2.4(4).
IRM 5.14.5.1.4 Restructured content into a table format to align with the IRM style guide.
IRM 5.14.5.1.5 Revised paragraph (3) to clarify that Guaranteed IA and the Simple Payment Plans do not require managerial approval for case closures.
IRM 5.14.5.1.5 Revised paragraph (3) to update the reference from a non-Streamlined Installment Agreement (NSIA) to the newly defined non-Simple Installment Agreement (NSIA).
IRM 5.14.5.1.5 Added language to paragraph (3) to define ICS-DSS as the cloud-based digital storage platform within ICS and clarified that Guaranteed IA, Simple Payment Plan, and Simple Payment Plan (Business Trust Fund) case dispositions do not require managerial approval.
IRM 5.14.5.1.6 Added content to paragraph (1) to define BMF non-trust fund and Unpaid Balance of Assessment (UBA).
IRM 5.14.5.1.7 Added acronyms.
IRM 5.14.5.2 Revised subsection title from Streamlined Installment Agreements to Simple Payment Plans.
IRM 5.14.5.2 Revised content throughout to replace Streamlined Installment Agreement with Simple Payment Plan for liabilities of $50,000 or less. Removed the prior two-tier $25,000/$25,001-$50,000 structure and 72-month minimum payment rule; required use of the IAT Compliance Suite Payment Calculator to full pay by the CSED.
IRM 5.14.5.2 Updated paragraphs (3) through (10) to include BMF non-trust fund liabilities up to $50,000, removed the DDIA/PDIA and CIS requirements, and added a solely-to-delay review for prior defaults.
IRM 5.14.5.3 Revised paragraphs (6) and (7) to clarify that Guaranteed IAs require use of the IAT Compliance Suite Payment Calculator, and that Simple Payment Plans should be considered before exploring other alternatives.
IRM 5.14.5.4 Revised subsection title from In-Business Trust Fund Express Installment Agreements to Simple Payment Plans (Business Trust Fund).
IRM 5.14.5.4 Revised content throughout to replace In-Business Trust Fund Express Installment Agreements with Simple Payment Plans (Business Trust Fund). Removed the 24-month full-pay requirement and required use of the IAT Compliance Suite Payment Calculator to full pay by the CSED.
IRM 5.14.5.4 Added paragraphs (3) through (6) to prohibit granting a Simple Payment Plan (Business Trust Fund) when the request accompanies a levy release or meets solely-to-delay criteria. Added a bullet to address that a TFRP determination is not required for a Simple Payment Plan (Business Trust Fund) only when the agreement is granted within 120 calendar days of ICS assignment, and incorporated ATFR/VTFRP disposition guidance from IGM SBSE-05-0126-0003.
IRM 5.14.5.4 Removed paragraph (8) to align the subsection with existing default and termination procedures, which require the RO to consider whether a taxpayer with a prior default is requesting a new agreement solely to delay.
IRM 5.14.5.4 Updated paragraphs (7) through (10) to remove the DDIA requirement for balances between $10,001 and $25,000 and to remove managerial approval of these agreements. Deleted the $10,000 reinstatement limitation.
IRM 5.14.5.5 Revised the subsection title to add “Payment Plan” next to “Installment Agreement”, clarifying that the terms refer to the same thing.
IRM 5.14.5.5 Added content throughout to reflect the new Simple Payment Plan process with the ICS-Digital Storage Solution (DSS) workflow changes.
IRM 5.14.5.5 Added paragraphs (2) through (4) to guide ROs of the temporary IMF ICS closing procedures for Simple Payment Plans, including documentation when ICS generates a managerial approval request and a required history statement.
IRM 5.14.5.5 Added paragraphs (5) and (6) to guide ROs on the temporary BMF ICS closing procedures for Simple Payment Plans and Simple Payment Plans (Business Trust Fund), including documentation when ICS generates a managerial approval request and a required history statement.
IRM 5.14.5.5 Removed paragraphs (4) and (5) that required routing Form 3210 for closed case file retention and submitting Form 433-D to CCP; replaced those paper routing procedures with electronic case file retention in ICS-DSS.
IRM 5.14.5.5 Added a Note in paragraph (7) stating that, effective May 31, 2026, all case files and documents must be digitized and uploaded to ICS-DSS for retention.
Throughout Removed naked links to internal web addresses to reflect the new IRS structure.
Throughout Updated hyperlinks and reference points, and clarified information to assist and support the end-user. Used Artificial Intelligence (AI) tools for editorial plain language revisions, punctuation, and grammar corrections. All content was reviewed and approved.

Effect on Other Documents

This material supersedes IRM 5.14.5 dated October 14, 2021. This IRM incorporates the following Interim Guidance Memoranda: SBSE-05-0325-0008, Interim Guidance for Field Collection on Simple Payment Plans (Formerly Streamlined Installment Agreements) for IMF Accounts with Balances Up to $50,000, issued March 3, 2025; SBSE-05-0126-0008, Revised Interim Guidance for Field Collection on new Simple Payment Plans for Business Master File (BMF) Taxpayers, issued January 30, 2026; and SBSE-05-0326-0022, Interim Guidance for Revenue Officers on the Use of Integrated Collection Systems (ICS) Digital Storage Solution (DSS) and the Transition from Paper to Digital Case Files, issued March 4, 2026.

Audience

Small Business Self-Employed (SB/SE) Field and Appeals employees

Effective Date

(07-21-2026)

Thomas Kramer
Director, Collection Policy
Small Business/Self-Employed

5.14.5.1 (07-21-2026)

Program Scope and Objectives

  1. Purpose: This section provides guidance and procedures for securing, approving, processing, and finalizing Guaranteed Installment Agreements, Simple Payment Plans, and Simple Payment Plans (Business Trust Fund). These agreements are subject to specific unpaid balance thresholds and payment requirements. This IRM provides procedures for establishing these agreements without requiring a full financial analysis when taxpayers meet the criteria.

  2. Audience: These procedures and guidance apply to Field Collection (FC) employees (revenue officers and supervisory group managers).

  3. Policy Owner: The Director, Collection Policy, is the policy owner of this IRM. Collection Policy operates within the Small Business/Self-Employed (SB/SE) Division, Collection.

  4. Program Owner: Collection Policy, Case Resolution Alternatives (CRA) is the program owner of this IRM.

  5. Primary Stakeholders:

    • Field Collection

    • Independent Administrative Review (IAR)

    • Insolvency

    • Independent Office of Appeals (Appeals)

    • Taxpayer Advocate Service (TAS)

  6. Program Goals: The U.S. Federal Tax System is built on the premise that all taxpayers are expected to file required returns and pay balances when due. When a taxpayer cannot pay immediately, the IRS may allow payment through an installment agreement (IA) (payment plan). By following the procedures prescribed in this IRM, employees can secure, approve, process, and finalize these agreements correctly.

5.14.5.1.1 (07-21-2026)

Background

  1. This section provides procedures for establishing Simple Payment Plans, Guaranteed Installment Agreements, and Simple Payment Plans (Business Trust Fund). These agreement types allow revenue officers to resolve liabilities without conducting a full financial analysis when taxpayers meet the criteria. When the unpaid balance is within the applicable threshold and the proposed payment will full pay the liability, including accruals, by the Collection Statute Expiration Date (CSED), the IRS may grant an installment agreement (payment plan) without requiring a Collection Information Statement (CIS).

  2. Before granting an agreement, taxpayers must establish filing and payment compliance. Individual taxpayers must file all required returns and must be current with payment requirements (e.g., estimated (ES) tax payments or federal income tax withholding). Business taxpayers with employees must file all required returns and must be current with applicable payment requirements (e.g., federal tax deposits (FTDs), estimated (ES) tax payments for C Corporations, or for other business entities when applicable.) Revenue officers must also determine whether the request is made solely to delay collection action and whether the agreement protects the government’s interest.

5.14.5.1.2 (10-14-2021)

Authority

  1. IRC 6159, Agreements for Payment of Tax Liabilities in Installments.

5.14.5.1.3 (07-21-2026)

Roles and Responsibilities

  1. The Director, Collection Policy, is the executive responsible for establishing and maintaining IRS policies and procedural guidance for the IA program. They are responsible for overseeing program coordination for field collection personnel related to the IA program.

  2. The program manager, Case Resolution Alternatives (CRA), is responsible for developing and delivering policies, procedures and practices within the IA program.

  3. Field Collection group managers and territory managers are responsible for ensuring IA policies and procedures described in this IRM are properly implemented and consistently followed.

  4. Collection employees are responsible for evaluating, securing, and processing agreements in accordance with this IRM and related guidance. This includes timely documentation in ICS, timely IDRS input or requesting input of required transaction codes, and retention of supporting documents in the digital case file.

5.14.5.1.4 (07-21-2026)

Program Management and Review

  1. Collection Policy oversees the installment agreement (IA) program through the following reports and reviews:

    Program Type Description
    Program Reports:

    1. Program reports include the Monthly IA Trend Report. Case Resolution Alternatives (CRA) generates and reviews this report using Collection Activity Report (CAR) data to monitor IA inventory levels, the number of IAs initiated, default rates, full pay rates, and dollars collected, and to identify and research anomalies or adverse trends.
    Program Reviews:

    1. Program reviews include ad hoc IA program reviews to verify compliance with IRM requirements, address TIGTA/GAO findings, and evaluate trends.

    2. Case reviews are conducted by group managers to ensure compliance with this IRM.

    3. Group managers, leads, and on-the-job instructors (OJIs) also review cases through Embedded Quality Review System (EQRS) for evaluating employee performance and providing feedback. The National Quality Reviewers use the National Quality Review System (NQRS) to ensure compliance with this IRM and report official organizational business-quality results. The Data Collection Instrument (DCI) is used to capture case reviews for both EQRS and NQRS.

    4. Operational reviews are conducted by the field compliance manager and area director annually to evaluate program delivery and conformance to administrative and compliance requirements.
5.14.5.1.5 (07-21-2026)

Program Controls

  1. Group managers must approve any determination that an IA (payment plan) request was made solely to delay collection action.

  2. Independent administrative review (IAR) is required when there is a proposed rejection. Taxpayers may administratively appeal the termination, modification, or rejection of a proposed IA to the IRS Independent Office of Appeals. Revenue officers must ensure appeal rights are communicated and documented in ICS history.

  3. The Integrated Collection System (ICS) is the case management system for SB/SE Field Collection and includes the digital storage solution (DSS). ICS-DSS allows revenue officers (ROs) to maintain active and closed case files in a cloud-based environment and to upload and retrieve case related documents. Each case file must show that the chosen disposition method selected is consistent with the facts and circumstances outlined in the case, the IRM, and other official guidance. Certain actions taken by ICS users systemically generate approval requests for managers. Managerial approval is required for Non-Simple Installment Agreement (NSIA) case dispositions. Managerial approval is not required for Guaranteed IA, Simple Payment Plan, and Simple Payment Plan (Business Trust Fund) case dispositions.

  4. The Integrated Data Retrieval System (IDRS) is used to monitor most IAs for timely payments on accounts, as well as to determine whether taxpayers remain in compliance with filing and paying requirements. When inputting an IA, all open balance due modules on IDRS in a notice or collection status must be included in the agreement. Revenue officers must verify IDRS reflects all modules before submitting the agreement for upload.

  5. Collection group managers are responsible for the quality and accuracy of work performed by the employees they supervise in accordance with IRM 5.13.1, Collection Quality Measurement, Embedded Quality Collection Field Organizations Administrative Guidelines. Managers must adhere to the program resource guide on management procedures and controls addressed in IRM 1.4.50, Collection Group Manager, Field Compliance Manager and Area Director Operational Aid.

5.14.5.1.6 (07-21-2026)

Terms

  1. Frequently used terms in this IRM, along with their definitions, include:

    • Delinquent Taxes: Assessed balance due (BAL DUE) accounts on IDRS, including notice status accounts, automated collection systems (ACS) balance due accounts, and Status 26 accounts assigned to Field Collection. Delinquent taxes include assessed tax, penalties, interest, and other statutory additions.

    • Accrued Taxes: Unassessed amounts due on returns, missed estimated tax payments or undeposited federal tax deposits (FTDs) as of the date of contact.

    • Current Taxes: Federal tax obligations that become due after taxpayer contact or during the term of the agreement, based on the filing, payment or deposit due date. These obligations include federal tax deposits (FTDs), estimated tax (ES) payments, and required income tax withholding.

    • BMF non-Trust Fund: Non-trust fund taxes are liabilities that do not include unpaid trust fund taxes subject to the Trust Fund Recovery Penalty (TFRP) under IRC 6672, Failure to collect and pay over tax, or attempt to evade or defeat tax. Examples include corporate income taxes, civil penalties and employment tax liabilities when the trust fund portion is paid in full, and only the employer tax, penalties or interest remains due.

    • Unpaid Balance of Assessment (UBA): The total assessed balance due on IDRS, including tax, assessed penalties, and assessed interest (the command code (CC) SUMRY balance.) UBA does not include accrued (unassessed) penalties and interest.

5.14.5.1.7 (07-21-2026)

Acronyms

  1. This table lists commonly used acronyms and their definitions:

    Acronym Definition
    ACS Automated Collection System
    ALN Agreement Locator Number
    ATFR Automated Trust Fund Recovery
    ATM Appeals Team Manager
    CAR Collection Activity Report
    CC Command Code
    CCP Centralized Case Processing
    CIS Collection Information Statement
    CRA Case Resolution Alternatives
    CSED Collection Statute Expiration Date
    DCI Data Collection Instrument
    DDIA Direct Debit Installment Agreement
    EQRS Embedded Quality Review System
    ES Estimated Tax
    FC Field Collection
    FTD Federal Tax Deposit
    GAO Government Accountability Office
    GM Group Manager
    IA Installment Agreement
    IAR Independent Administrative Review
    IAT Integrated Automation Technologies
    IBTF In-Business Trust Fund
    ICS Integrated Collection System
    ICS-DSS Integrated Collection System - Digital Storage Solution
    IDRS Integrated Data Retrieval System
    IRC Internal Revenue Code
    IRS Internal Revenue Service
    NFTL Notice of Federal Tax Lien
    NQRS National Quality Review System
    NSIA Non-Simple Installment Agreement
    OJI On-the-Job Instructor
    OOB Out of Business
    P&I Penalties and Interest
    RO Revenue Officer
    SBSE Small Business Self Employed
    TAS Taxpayer Advocate Service
    TFRP Trust Fund Recovery Penalty
    TIGTA Treasury Inspector General for Tax Administration
    UBA Unpaid Balance of Assessment
    VTFRP Virtual Trust Fund Recovery Penalty
5.14.5.1.8 (07-21-2026)

Related Resources

  1. IRM Resources:

    • IRM 4.20.1.4, Installment Agreements, for examination collection procedures.

    • IRM 5.4.11, Case Processing, CCP Installment Agreements.

    • IRM 5.19.1.2.6.3, Installment Agreements, for Accounts Management, Field Assistance, ACS, ACSS and CSCO collection procedures.

    • IRM 8.22.7.5, Installment Agreements (IA), for appeals officers and appeals team managers (ATMs) regarding collection procedures.

    • IRM 5.14.1.6, Multi-functional Installment Agreement (Payment Plan) Authority, provides guidance for various functions.

  2. Web Resources:

    • Centralized Field Support Knowledge Base Homepage: Centralized Field Support Knowledge Base Homepage

    • Integrated Collection System (ICS) User Guide: Integrated Collection System (ICS) User Guide

    • Integrated Automation Technologies Homepage: Integrated Automation Technologies (IAT) Homepage

    • Installment Agreements Knowledge Base Homepage: Installment Agreements Knowledge Base Homepage

  3. The Internal Revenue Code (IRC) provides taxpayers specific rights. The Taxpayer Bill of Rights (TBOR) groups these rights into ten fundamental rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. Employees are responsible for being familiar with and following these rights. For additional information about your taxpayer rights, see Pub 1, Your Rights as a Taxpayer, or visit Taxpayer Bill of Rights.

5.14.5.2 (07-21-2026)

Simple Payment Plans

  1. A Simple Payment Plan may be granted when all of the following criteria are met:

    1. The aggregate unpaid balance of assessment (the CC SUMRY balance) is $50,000 or less. The unpaid balance of assessment (UBA) includes tax, assessed penalties, interest, and all other assessments on the tax modules. The UBA does not include accrued (unassessed) penalties and interest.

    2. Simple Payment Plans may be approved if taxpayers make a payment on the liability to reduce the UBA before entering into the agreement.

    3. If pre-assessed liabilities are present, the total of the pre-assessed liabilities and the UBA must be $50,000 or less.

      Caution:

      All Simple Payment Plans must be calculated using the IAT Compliance Suite Payment Calculator. The calculator must ensure full payment of all balances, including accrued penalties and interest, by the Collection Statute Expiration Date (CSED). Document the calculation results in the ICS case history.

    4. Monthly payment amounts may increase or decrease in the future, provided the unpaid balance is paid in full by the CSED.

  2. The following taxpayers qualify for Simple Payment Plans with an aggregate unpaid balance of assessment (CC SUMRY balance) of $50,000 or less:

    • IMF;

    • Out-of-Business (OOB) Sole-Proprietor; and

    • BMF non-Trust.

      Note:

      For cross-reference agreements, follow IRM 5.14.4.3, Installment Agreements and Multiple Entities, paragraphs (2) through (4). Each entity included in the agreement must meet the applicable unpaid balance, compliance, and CSED protection requirements.

  3. Accounts in any Status qualify, including:

    • Notice status accounts;

    • Balance due status accounts; and

    • Pre-assessed accounts

  4. A Notice of Federal Tax Lien (NFTL) determination is not required when granting a Simple Payment Plan. However, revenue officers (ROs) may file an NFTL at their discretion when they determine filing is appropriate to protect the government’s interest. If the RO determines that filing an NFTL is appropriate for a case resolved through a Simple Payment Plan:

    • The justification for filing the NFTL must be documented in the Integrated Collection System (ICS) case history.

    • The documentation must include the reason for the filing decision.

    • Manager concurrence must be obtained and documented in ICS.

  5. Managerial approval is not required to grant a Simple Payment Plan.

    Note:

    If ICS generates a systemic request for managerial approval, refer to IRM 5.14.5.5(4) for guidance on processing Simple Payment Plan closures.

  6. Simple Payment Plans with a CC SUMRY balance of $50,000 or less are not required to be established as a Direct Debit IA (DDIA) or a Payroll Deduction IA (PDIA).

    Reminder:

    Granting a payment plan may not be in the government’s best interest when the taxpayer has defaulted on one or more prior agreements. When prior defaults exist, Field Collection must evaluate whether the current proposal is “Solely to Delay” collection. This determination must be based on the facts and circumstances of the case, including the taxpayer’s compliance history and prior defaults. For guidance on handling requests from taxpayers with a history of defaulting on prior agreements, refer to IRM 5.14.3.3(3)d, Installment Agreement Requests Made to Delay Collection Action.

  7. A Collection Information Statement (CIS) is not required when the account meets the criteria for a Simple Payment Plan.

  8. Revenue officers must ensure the CSED is protected when granting the agreement. (Use the IAT Compliance Suite Payment Calculator to verify that the proposed payment amount will full pay all balances, including accrued penalties and interest, before the expiration of the CSED.)

  9. Revenue officers may secure these agreements in person, by telephone, or in writing (correspondence).

  10. Simple Payment Plans are not required to be established as Direct Debit Installment Agreements (DDIAs) or Payroll Deduction Installment Agreements (PDIAs). If the taxpayer chooses direct debit, secure a signed Form 433-D, Installment Agreement. If the taxpayer chooses payroll deduction, secure a signed Form 2159, Payroll Deduction Agreement.

  11. As with all agreements, verify filing and payment compliance before accepting the agreement. Individual taxpayers must file all required returns and must be current with required withholding or estimated tax payments. Business taxpayers must file all required returns and must be current with required deposits and payments. (See IRM 5.14.1.3, Identifying Pending, Approved and Rejected Installment Agreement Proposals on IDRS and IRM 5.14.1.4.1, Six-Year Rule and One-Year Rule.)

  12. See IRM 5.14.11.5, Considerations after Default or Termination, Including Reinstatement, regarding reinstatement of agreements that meet Simple Payment Plan criteria.

  13. Encourage taxpayers with assessed balances greater than $50,000 to make payments to reduce the balance to $50,000 or less, when possible. Doing so may:

    • Eliminate the need to secure a financial statement;

    • Allow up to 10 years to full pay, or until the Collection Statute Expiration Date (CSED), whichever is earlier; and

    • Potentially qualify for a Simple Payment Plan.

      Reminder:

      Before considering a Simple Payment Plan for case resolution, revenue officers must first explore all available collection alternatives to resolve the account. Those alternatives include borrowing against or selling an asset in which the taxpayer has equity. A payment plan may not always be the best option in every case. Sometimes extenuating circumstances may require additional investigation of the unpaid account balance. See IRM 5.14.1.4(5), Installment Agreement Acceptance and Rejection Determinations.

  14. Eligibility for an agreement is based on the taxpayer’s current financial condition. However, there are situations in which the taxpayer insists on making payments above what they can afford. Refer to IRM 5.14.1.4(8), on agreements with a backup 53 in case of default and termination.

  15. Taxpayers may be granted Simple Payment Plans based on the criteria provided in IRM 5.14.5.2(1) - (17), even when they can fully pay their accounts.

  16. For Simple Payment Plans of $25,000 or less, use 36 in the YY position (XX36) of the agreement locator number (ALN).

  17. For Simple Payment Plans of $25,001 or greater, use 37 in the YY position (XX37) of the agreement locator number (ALN).

  18. Taxpayers should be advised of accruals of penalty and interest during the duration of an agreement. If the taxpayers decide it is in their best interest to pay the account balance fully, a payoff balance should be provided to the taxpayers with instructions regarding payment submission. See IRM 5.14.1.2(6), Installment Agreements and Taxpayer Rights, for the various electronic and credit card payment methods.

5.14.5.3 (07-21-2026)

Guaranteed Installment Agreements

  1. IRC 6159(c) requires the IRS to accept an IA proposal from an individual taxpayer when all statutory conditions are met. The taxpayer must:

    1. Owe income tax only of $10,000 or less (excluding penalties and interest (P&I));

    2. Not have failed to file any income tax return or pay any tax shown on such returns during any of the preceding five taxable years;

    3. Be unable to full pay the liability immediately (see paragraph (2) below);

    4. Agree to fully pay the tax liability within three years or before the Collection Statute Expiration Date (CSED), whichever is earlier;

    5. Agree to remain in compliance with all filing and payment requirements during the term of the IA; and

    6. Not have entered into an IA during any of the preceding five taxable years.

      Note:

      Guaranteed IAs may also be appropriate for individuals who want to pay all post-petition debt incurred after the bankruptcy filing. See IRM 5.9.4.20.1, IA Requests for Post-Petition Liabilities Submitted During Bankruptcy.

  2. As a matter of policy, the IRS may grant a guaranteed IA even if the taxpayer has the ability to full pay the liability.

  3. Unlike the criteria for Simple Payment Plans, the $10,000 threshold applies only to the tax liability. The taxpayer may owe additional amounts in penalties and interest (both assessed and accrued), and still qualify for a guaranteed IA, so long as the tax liability alone is not greater than $10,000.

  4. Guaranteed IAs may be granted by revenue officers and other contact employees. Managerial approval is not required for this type of IA. A financial statement is not required.

  5. An NFTL determination is not required for a guaranteed IA; however, an NFTL may be filed at the discretion of the revenue officer.

    Reminder:

    When an NFTL filing determination is not required, but a decision to file an NFTL has been made, document the justification in the ICS case history, including managerial concurrence.

  6. Use the IAT Compliance Suite Payment Calculator to determine if the tax, including statutory additions, will full pay within three years or before the CSED, whichever comes first.

  7. If the taxpayer does not qualify for a guaranteed IA, consider a Simple Payment Plan before considering other alternatives. Process guaranteed IAs as Simple Payment Plans on ICS.

  8. Advise taxpayers that penalties and interest continue to accrue during the agreement. If the taxpayer decides it is in their best interest to pay the account balance in full, a payoff balance should be provided to the taxpayers with instructions regarding payment submission. See IRM 5.14.1.2(5), Installment Agreements and Taxpayer Rights, for the various electronic payment methods.

5.14.5.4 (07-21-2026)

Simple Payment Plans (Business Trust Fund)

  1. A Simple Payment Plan (Business Trust Fund) may be granted when all of the following criteria are met:

    1. The aggregate unpaid balance of assessment (the SUMRY balance) is $25,000 or less. The unpaid balance of assessment (UBA) includes tax, assessed penalties, interest, and all other assessments on the tax modules. The UBA does not include accrued (unassessed) penalties and interest.

    2. The liability must be $25,000 or less at the time the agreement is granted. The taxpayer may pay the balance down before the agreement is granted, but may not use the first installment payment to reduce the balance to the threshold.

    3. If pre-assessed liabilities are present, the total of the pre-assessed liabilities and the UBA must be $25,000 or less.

      Caution:

      All Simple Payment Plans must be calculated using the IAT Compliance Suite Payment Calculator. The calculator must ensure full payment of all balances, including accrued penalties and interest, by the Collection Statute Expiration Date (CSED). Document the calculation results in the ICS case history.

    4. Monthly payment amounts may increase or decrease in the future, provided the unpaid balance is paid in full by the CSED.

      Note:

      These agreements apply to BMF trust fund accounts, including Sole-Proprietors.

  2. If the account qualifies for Simple Payment Plans (Business Trust Fund):

    • Field Collection (FC) employees are not required to make a field call to verify assets before granting the payment plan.

    • A financial statement is not required.

    • Banking and account receivable information must be documented in ICS.

    • Filing and payment compliance must be verified through IDRS and confirmed with the taxpayer. If the taxpayer is not in filing compliance, a payment plan cannot be granted.

    • If rejection of a payment plan is planned, refer the case for Independent Administrative Review (IAR). (See IRM 5.14.9.2.1 , Revenue Officer Responsibility.)

  3. Do not grant a Simple Payment Plan (Business Trust Fund) if any of the following apply:

    • The payment plan request is made in conjunction with a request for levy release.

    • The case meets “Solely to Delay” criteria under IRM 5.14.3.3, Installment Agreement Requests Made to Delay Collection Action. This includes situations where there is an indication the business may be using pyramiding or successor entities to avoid tax responsibilities.

      Note:

      When any of these conditions apply, complete the required financial analysis and TFRP determinations, as required.

      Reminder:

      Granting a payment plan may not be in the government’s best interest when the taxpayer has defaulted on one or more prior agreements. When prior defaults exist, Field Collection must evaluate whether the current proposal is “Solely to Delay” collection. This determination must be based on the facts and circumstances of the case, including the taxpayer’s compliance history and prior defaults. For guidance on handling requests from taxpayers with a history of defaulting on prior agreements, refer to IRM 5.14.3.3(3)d, Installment Agreement Requests Made to Delay Collection Action.

  4. Per IRM 5.12.2.3.1, Determination Requirement Exceptions, an NFTL filing determination is not required for a Simple Payment Plan (Business Trust Fund). If the case cannot be closed as a Simple Payment Plan (Business Trust Fund) on or before the NFTL filing determination deadline, make a timely NFTL filing determination (non-filing or deferral) decision based on the facts and circumstances, and continue agreement negotiations as appropriate. Refer to IRM 5.12.2.3.2, Determination Requirements and IRM 5.12.2.4.1, Integrated Collection System (ICS) Documentation When Deferring the Filing of an NFTL or Choosing “Do Not File”, for additional guidance.

  5. An NFTL filing may still be appropriate to protect the government's interests, including when:

    • The BMF entity has defaulted on prior agreements, or

    • The BMF entity has a history of “pyramiding” trust fund taxes as described in IRM 5.7.8.3, Identifying Repeater Taxpayers.

    Note:

    When a NFTL filing determination is not required, but a decision to file an NFTL has been made, document the justification in the ICS case history, including manager concurrence.

  6. A TFRP determination is not required only when all of the following conditions are met:

    • The unpaid balance of assessment (UBA) is $25,000 or less;

    • The taxpayer qualifies for and is granted a Simple Payment Plan (Business Trust Fund);

    • The entire liability will be paid in full by the Collection Statute Expiration Date (CSED); and

    • The Simple Payment Plan is granted within 120 calendar days of case assignment on ICS.

      Note:

      Do not delay a TFRP determination solely because the UBA is $25,000 or less. If the taxpayer qualifies for and is granted a Simple Payment Plan (Business Trust Fund), follow the case disposition procedures in IRM 5.7.4.2 , TFRP Determinations, Interviews, and Investigations, to remove the case from the Automated Trust Fund Recovery (ATFR) program or the Virtual Trust Fund Recovery Penalty (VTFRP) program inventory.

      Note:

      If the TFRP was recommended or assessed before the Simple Payment Plan (Business Trust Fund) was granted, document whether collection of the TFRP will continue or be deferred during the agreement.

  7. A Direct Debit Installment Agreement (DDIA) is not required for a Simple Payment Plan (Business Trust Fund). If the taxpayer chooses direct debit, follow IRM 5.14.10.5, Direct Debit Installment Agreements for IBTF Cases, for input, approval and routing.

  8. Managerial approval is not required to grant a Simple Payment Plan (Business Trust Fund).

  9. Business accounts with a UBA over $25,000 do not qualify for a Simple Payment Plan (Business Trust Fund). A lump sum payment cannot be used as the first payment under the agreement to reduce the balance to meet the $25,000 threshold. However, taxpayers with liabilities exceeding $25,000 may qualify if the balance is paid down to $25,000 or less prior to granting the agreement.

    1. Use the Simple Payment Plan procedures in IRM 5.14.5.2, Simple Payment Plans, for BMF non-trust fund taxes. This includes employment tax liabilities only when the trust fund portion is paid in full and only the non-trust fund portion remains due.

    2. See IRM 5.14.7, BMF Installment Agreements, for IBTF accounts that do not meet the criteria in this subsection.

5.14.5.5 (07-21-2026)

Disposition of Approved Installment Agreement (Payment Plan) Documents

  1. The preferred method for closing a Guaranteed Installment Agreement, Simple Payment Plans, or Simple Payment Plans (Business Trust Funds) is Option A on the ICS Installment Agreement menu. Option A method of closure allows these agreements to be systemically uploaded from ICS to IDRS.

  2. Managerial approval is not required for Guaranteed Installment Agreements, Simple Payment Plans, or Simple Payment Plans (Business Trust Fund) when the case meets the criteria in this section. If ICS generates a systemic approval request, document the required history in ICS before submitting the closure. See IRM 5.14.5.5 (4) for IMF closures and IRM 5.14.5.5 (6) for BMF closures.

  3. Until ICS programming is updated (anticipated January 2027), ROs may close a case as a Simple Payment Plan on ICS by selecting ‘Streamlined Installment Agreement.’ Due to current ICS system limitations, ROs must use the temporary procedures below to close IMF (OOB BMF accounts) Simple Payment Plan cases with balances greater than $25,001.

    IF closing the... AND the balance is... THEN take the following action:
    Simple Payment Plan
    (non-DDIA)    		 $25,001 to $50,000

    • In the ICS Installment Agreement menu, select ‘Option A-IA’ and choose Routine, Not PPIA under IA type.

  4. If ICS generates a group manager approval request for an IMF closure, document the ICS history to state the following:

    • This is a Simple Payment Plan closure. Group manager approval is not required.

  5. Until ICS programming is updated (anticipated January 2027), ROs may close a case as a Simple Payment Plan or Simple Payment Plan (Business Trust Fund) on ICS by selecting ’Streamlined Installment Agreement’ or ‘IBTF Express.’ Due to current ICS limitations, ROs must use the temporary procedures below to close In-Business BMF cases.

    IF closing the... AND the balance is... THEN take the following action:
    Simple Payment Plan
    (non-DDIA)    		 $25,000 to $50,000

    • In the ICS Installment Agreement menu, select ‘Option A-IA’ and choose CCP (PSC)-IBTF-IA (NF ITEM in CCP), Not PPIA under IA type.

    • Select ‘Yes’ for TFRP has been addressed.

    • For TFRP requirements, select ‘No Trust Fund Owed/TFRP NA’.
    Simple Payment Plan
    (DDIA)    		 $25,001 to $50,000

    • For BMF accounts that are not Trust Fund accounts, go to the ICS Installment Agreement menu, select ‘Option A-IA’ and choose IBTF Direct Debit IA.

    • Select ‘Yes’ for TFRP has been addressed.

    • For TFRP requirements, select ‘No Trust Fund Owed/TFRP NA’.
    Simple Payment Plan
    (Business Trust Fund)
    (non-DDIA)    		 $10,001 to $25,000

    • In the ICS Installment Agreement menu, select ‘Option A-IA’ and choose CCP (PSC)-IBTF-IA (NF ITEM in CCP), Not PPIA under IA type.

    • Select ‘Yes’ for TFRP has been addressed.

    • For TFRP requirements, select ‘No Trust Fund Owed/TFRP NA’.

  6. If ICS generates a group manager approval request for a BMF closure, document the ICS history to state the following:

    • This is a Simple Payment Plan (Business Trust Fund) closure. Group manager approval is not required.

  7. After the group manager approves the IA (if applicable), maintain an electronic copy of Form 433-D, Installment Agreement, in ICS-DSS for association with the case. Mail the system generated Letter 2849, Direct Debit Installment Agreement - Installment Agreement Acceptance, or Letter 2850, ICS Installment Agreement Confirmation, to the taxpayer and representative (if applicable). The ICS history will reflect that the agreement was systemically uploaded to IDRS.

    Note:

    Effective May 31, 2026, all case files and supporting documents must be digitized and uploaded to ICS-DSS for retention.

  8. If Form 433-D is prepared and approved outside of ICS, digitize and upload it to ICS-DSS for retention. Select Option B on the Installment Agreement menu to close the case. The system will generate TC 971 AC 063.

  9. Option B does not systemically generate an approval notification, Form 433-D, Installment Agreement or Letter 2849, Direct Debit Installment Agreement - Installment Agreement Acceptance/Letter 2850, ICS Installment Agreement Confirmation. When closing a case using Option B, generate the appropriate letter from the Templates Listing on the ICS Installment Agreement menu and mail it to the taxpayer and representative (if applicable).

  10. Mail the systemically generated Letter 2849, Direct Debit Installment Agreement - Installment Agreement Acceptance, or Letter 2850, ICS Installment Agreement Confirmation, to the taxpayer and representative (if applicable).