Calendar showing tax day circled in red | Vivian Hoard | Tax Attorney| Atlanta, GAIt is in the best interest of the individual who owes taxes to the federal government to enroll in some type of installment agreement to pay those taxes.

Generally speaking, the IRS can requisition an assessed tax for 10 years from the date of assessment. Individuals are only expected to pay what they can afford in correspondence with published collection financial standards.

In some instances, those standards can be negotiated depending on the individual’s situation. The IRS is able to accept an installment agreement to pay the entire liability. However, the IRS can also accept an installment agreement from the individual to pay a part of the liability with the balance expiring at the end of the collection statute of limitations.

Unfortunately, the IRS is able to reduce the deficiency to a judgment against the individual if the individual fails to pursue any sort of resolution for their back taxes. Additionally, the IRS is able to increase the 10-year period on collection by way of 26 U.SC. Section 6502(a). The extension stands until the judgment is fulfilled or becomes unenforceable under state law. This was true in the recent case of a Kentucky taxpayer (See U.S. v Thomas Nugent, No. 5:16-cv-00380, U.S.D.C. for the Eastern District of Kentucky, January 12, 2018).

In order to be authorized for an installment agreement, a taxpayer needs to be “current.” It is imperative that they have filed all tax returns that are due, and paid taxes for the most recent period by way of employer withholdings or estimated tax payments. Read more…

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