Guaranteed Installment Agreement.

The “Guaranteed” installment agreement program is one of the IRS’ special installment agreement programs. Other special programs with their own specific criteria discussed elsewhere include “Streamlined” installment agreements, “In-Business Trust Fund Express” installment agreements, and “Partial Payment” installment agreements.

As discussed in a previous course, Congress granted the Secretary broad discretionary powers to accept or reject a taxpayer’s installment agreement request if the Secretary determines that such agreement will facilitate full or partial collection” of back-taxes. 26 U.S.C. § 6159(a). However, Congress compelled the Secretary to accept a taxpayer’s installment agreement request for a certain type of installment agreement called a “Guaranteed Installment Agreement” by the IRS. 26 U.S.C. § 6159(c). Congress compelled the Secretary to accept such an agreement by replacing the discretionary phrase “if the Secretary determines” contained in 26 U.S.C. § 6159(a) with the mandatory phrase “the Secretary shall enter into an agreement to accept the full payment” contained in 26 U.S.C. § 6159(c). The “Guaranteed” installment agreement program is one of the IRS’ special installment agreement programs. Other special programs with their own specific criteria discussed elsewhere include “Streamlined” installment agreements, “In-Business Trust Fund Express” installment agreements, and “Partial Payment” installment agreements.

The “Guaranteed” installment agreement program has many features that benefit taxpayers with back-taxes. First, the IRS is required to accept a qualifying taxpayer’s installment agreement request – the IRS has no discretion. Second, no managerial approval is required for Guaranteed installment agreements. IRM § 5.14.5.3(4) (12-23-2015). Third, a taxpayer is allowed to repay the tax liability over a period not exceeding three (3) years.

Attorney Bob Schaller

Bankruptcy/Tax Attorney & Registered CPA

Bob has practiced law for more than 35 years and filed more than 3,000 bankruptcy cases. He has argued bankruptcy cases before the U.S. Court of Appeals, U.S. District Court, and U.S. Bankruptcy Court. He has authored 22 books including the 6-volume "Bankruptcy MasterClass Practice System & Toolkit."