When you owe money to the IRS and cannot pay it in full there are generally 3 non-bankruptcy options available to you:
Make a settlement offer known as an Offer in Compromise;
Request an installment payment plan; and
Request that your account be placed in non-collectible status.
Non-collectible status
The IRS does not want to waste it’s valuable resources in [...]
Tags: IRS Installment Agreements · Tax Collections
Thomas B. and Labelle B. Lance v Commissioner of Internal Revenue- In this case the taxpayers requested an offer in compromise on the basis of doubt as to collectibility or, in the alternative, an installment payment arrangement, but refused to provide to the IRS officer a completed collection information statement.
The IRS officer did not give the taxpayers [...]
Tags: Court Cases · IRS Installment Agreements · Offers in Compromise
The National Law Journal has a great article titled Attorneys Angered Over Lack of IRS Aid which tells about the IRS’s failure to efficiently and properly evaluate and process Offers in Compromise and Partial Payment Installment Plans:
At the start of the new year, the Internal Revenue Service announced steps to help struggling taxpayers buffeted by the [...]
Tags: IRS Installment Agreements · Offers in Compromise · Taxpayer Advocate
Gregory H. Haubrich v. Commissioner of Internal Revenue – The taxpayer, Haubrich, filed a form 12153 Request for a Collection Hearing, requesting, among other things, that the IRS enter into an Installment Agreement with him for the payment of back taxes in lieu of pursuing enforced collection.
The IRS appeals officer assigned to handle the request [...]
Tags: IRS Installment Agreements · IRS appeals · Taxpayer Rights
If you can’t pay your tax debt in full, you will have to completely disclose your financial circumstances to the IRS.
There is no way to avoid this disclosure requirement other than making full payment.
A taxpayer’s financial information is provided on one or more of the following prescribed IRS forms:
IRS Form Number
Description
Who Must File
433A
Collection Information Statement [...]
Tags: IRS Installment Agreements · Offers in Compromise · Tax Collections
Nina Olson, the National Taxpayer Advocate, has released her Annual Report to Congress (PDF).
In it she recommends something old and something new: Simplification of the tax code and enactment of measures that will minimize the burden on taxpayers who are struggling to pay their tax bills.
Ms. Olson said, “it is imperative for the IRS to consider the circumstances of taxpayers facing [...]
Tags: Announcements · Back Taxes · IRS Installment Agreements · IRS Liens and Levies · Offers in Compromise · Tax Collections
Whatever you think of the IRS, it’s website is a veritable treasure trove of useful information for taxpayers and the tax professionals who represent them.
Here is a table I found that compares the requirements and benefits of the IRS’s various payment and offer arrangements.Â
PAYMENT AGREEMENT COMPARISON TABLE
Type of Payment Agreement
Total Liability Limit?
Timeframe for Payment
Eligibility Requirements
Provide Financial [...]
Tags: IRS Installment Agreements · Offers in Compromise
Allan Barry Marks and Rosalind J. Marks v. Commissioner - In this case the taxpayers represented themselves throughout the IRS collection process up to and including Tax Court.Â
The Marks’ were issued a notice of intent to levy and disputed it by filing an appeal with the IRS appeals office. At appeals the taxpayers requested an installment agreement as [...]
Tags: Court Cases · IRS Installment Agreements · IRS Liens and Levies · Opinion · Tax Collections
Wall Street Journal – Taxes Blog
