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Secretary was authorized to enter into installment agreements
with any taxpayer “to satisfy liability for payment of any tax in
installment payments if the Secretary determines that such
agreement will facilitate collection of such liability.” The
applicable regulations contemplated that an installment agreement
would require the taxpayer to make scheduled periodic payments
until the tax liability is fully paid.9 Sec. 301.6159-1(a),
Proced. & Admin. Regs. Respondent generally has the discretion
9 In the American Jobs Creation Act of 2004 (AJCA 2004),
Pub. L. 108-357, sec. 843(a)(1), 118 Stat. 1418, 1600, Congress
amended sec. 6159 to authorize the Secretary to enter into
installment agreements “under which such taxpayer is allowed to
make payment on any tax in installment payments if the Secretary
determines that such agreement will facilitate full or partial
collection of such liability.” The amendment is effective for
installment agreements entered into on or after Oct. 22, 2004.
AJCA 2004 sec. 843(c). The legislative history describes the
reason for this amendment as follows:
The Committee believes that clarifying that the IRS is
authorized to enter into installment agreements with
taxpayers that do not provide for full payment of the
taxpayer’s liability over the life of the agreement
will improve effective tax administration.
The Committee recognizes that some taxpayers are
unable or unwilling to enter into a realistic offer-in-
compromise. The Committee believes that these
taxpayers should be encouraged to make partial payments
toward resolving their tax liability, and that
providing for partial payment installment agreements
will help facilitate this. [H. Rept. 108-548, at 307
(2004).]
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