Tax Dictionary – Guaranteed Installment Agreement
Internal Revenue Code (IRC) section 6159(c) requires the IRS to accept proposals of installment agreements under certain circumstances. In accordance with the tax laws the IRS must accept proposals to pay in installments if taxpayers are individuals who:
- owe income tax only of $10,000 or less (excluding penalties and interest);
- have not failed to file any income tax returns or to pay any tax shown on such returns during any of the preceding five taxable years;
- cannot pay the tax immediately;
- agree to fully pay the tax liability within 3 years;
- agree to file and pay all tax returns during the term of the agreement; and
- have not entered into an installment agreement during any of the preceding five taxable years.
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