Tax Dictionary – Manually Monitored Installment Agreement
The types of installment agreements (IAs) listed below must be manually monitored ensuring compliance with the terms of the IA:
- IAs calling for variable amounts (For example, a taxpayer with seasonal income and payment amounts vary from season to season.)
- IAs secured from more than one person at different addresses paying on the same liability
- IAs secured from the secondary taxpayer only
- Certain other IAs
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Most installment agreements are not manually monitored. They are run through computerized IRS systems. But certain situations require that the Centralized Case Processing Unit manually monitor an installment agreement. The most common scenarios are when an irregular payment schedule is set up, when there is a pending innocent spouse claim or when each spouse on a joint liability has a different type of agreement such as one is in currently not collectible status and the other is in an installment agreement.
Centralized Case Processing monitors the installment agreement to ensure payments are made as required and that all future tax returns are filed and paid by the deadline.
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