Tax Dictionary – In-Business Trust Fund Express Installment Agreement
Small businesses that currently have employees can qualify for an In-Business Trust Fund Express Installment Agreement (IBTF Express IA). These installment agreements generally do not require a financial statement or financial verification as part of the application process.
The criteria to qualify for an IBTF Express IA are:
- You owe $25,000 or less at the time the agreement is established. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
- The debt must be full paid within 24-months or prior to the Collection Statute Expiration Date (CSED), whichever is earlier.
- You must enroll in a Direct Debit installment agreement (DDIA) if the amount you owe is between $10,000 and $25,000.
- You must be compliant with all filing and payment requirements.
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If your business is behind on its payroll taxes, the In-Business Trust Fund Express agreement can help the business get back on track without having to provide the IRS with an extensive amount of financial information. If the business owes more than $25,000, an installment agreement is still possible, but a completed collection information statement (Form 433-B) will be required.
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