- 9 - find no abuse of discretion in the settlement officer’s decision that petitioners were not eligible for CNC status. Installment Agreement Section 6159 authorizes respondent to consider installment agreements when a taxpayer lacks the current ability to satisfy the full amount of taxes. At the time of the collection due process hearing in this case, respondent maintained a policy of accepting installment agreements only with terms that would result in full payment of all Federal income tax liabilities within the applicable collection periods of limitation. Internal Revenue Manual, sec. 5.14.1.1 (effective Oct. 18, 1999 to Mar. 30, 2002). A 5-year extension of the periods of limitation is permissible when making this determination. Internal Revenue Manual, sec. 5.14.1.7 (effective Oct. 18, 1999 to Mar. 30, 2002). In light of the amount of petitioners’ cumulative liability, an acceptable installment agreement would have required payments of approximately $1,500 per month for the 116 months in the collection periods of limitation. Even with a 5-year extension, payments of more than $1,100 per month would have been required. Petitioners do not dispute their inability to make payments in that amount. After the notice of determination was issued in this case, respondent changed its policy related to installment agreements. Under respondent’s new policy, respondent may allow taxpayers toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011