Tax Seminar #3 – December 3 2012

DIRECT DEBIT INSTALLMENT AGREEMENT
Eligibility Requirements to request Lien Withdrawal:
1. The current amount owed must be $25,000 or less
2. Balance may be paid down to $25,000 or less prior to requesting the lien withdrawal to become eligible.
3. DDIA must pay the full amount owed within 60 months OR before the Collection Statute expires,
whichever is earlier.
4. Taxpayer must be in full compliance with other filing and payment requirements
5. Taxpayer must have made three consecutive direct debit payments
6. Taxpayer cannot have previously received a lien withdrawal for the same taxes (unless the withdrawal
was for an improper filing of the lien).
7. You cannot have defaulted on your CURRENT, or any PREVIOUS, direct debit installment agreement.
Who is NOT Eligible
1. Taxpayers who owe more than $25,000
2. Small Business who owe Payroll Trust Fund Taxes
3. Taxpayer has defaulted on their CURRENT, or any PREVIOUS, direct debit installment agreement.
Completion of Form 12277 “Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien”:
A. Check the third box in Section 11 “The taxpayer is under a Direct Debit Installment Agreement”
B. In Section 12 write: "I have a Direct Debit Installment Agreement, the balance is less than $25,000
and I have made three payments. I am seeking a withdrawal under the Fresh
Start program."
Submit Package:
(See Publication 4235 "Advisory Group Addresses" to determine which is office should receive your Form 12277)
1. Transmittal Letter
2. Copy of the IRS Direct Debit Installment Agreement Acceptance Letter.
3. Copy of Form 2848 "Power of Attorney and Declaration of Representative"
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