- 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 to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011