Richard T. and Catherine L.. Lites - Page 16

                                       - 16 -                                         
          to accept or reject an installment agreement proposed by a                  
          taxpayer.10  Sec. 301.6159-1(b)(1)(i), Proced. & Admin. Regs.               
               Eligibility for an installment agreement is based on the               
          taxpayer’s current financial condition.  Internal Revenue Manual            
          (I.R.M.) sec. 5.14.1.4(1) (effective July 1, 2002).  In                     
          requesting an installment agreement, a taxpayer must provide                
          specific information, including a proposed monthly payment or               
          other periodic payment amount.  I.R.M. sec. 5.14.1.3(4)                     
          (effective July 1, 2002).  The amount of the taxpayer’s payment             
          depends on his or her ability to pay.  I.R.M. sec. 5.14.1.4.3(1)            
          (effective July 1, 2002).  For an installment agreement to be               
          approved, a taxpayer must be in compliance with all filing                  
          requirements.  I.R.M. sec. 5.14.1.4.1(5) (effective July 1,                 
          2002).                                                                      
               At the time of the administrative process in this case, the            
          Internal Revenue Service generally limited the length of                    
          installment agreements to the 10-year statutory collection period           
          as provided in section 6502(a)(2)(A), “except in instances when a           
          reasonable extension of the statutory period for collection will            
          allow an agreement to be accepted.”  I.R.M. sec. 5.14.2.1(2)                
          (effective Mar. 30, 2002).  Extensions were limited to no more              


               10 As an exception to this general rule, sec. 6159 requires            
          the Commissioner to enter into installment agreements in certain            
          circumstances (generally involving tax liabilities of less than             
          $10,000) not presented by the instant case.  See sec. 6159(c).              




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

Last modified: May 25, 2011