- 15 - 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).]Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
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