Does Installment Agreement Extend Statute Limitations?
Whether you’re trying to collect on an IRS refund or you’re just curious, it’s important to know does an installment agreement extend the statute of limitations. If you’re not sure, you should consult a tax attorney to find out what the statute of limitations is for your particular case.
Suspend or toll the 10-year statute of limitations on collection
Typically, the IRS has ten years to collect on delinquent taxes. As the collection statute of limitations gets closer, the IRS ramps up its collection efforts. This may include the issuance of a federal tax lien, garnishing wages, and seizing assets.
In certain cases, the IRS may suspend or toll the 10-year statute of limitations on collection. This extension can vary, depending on the circumstances of the taxpayer. Some of the common actions that may suspend or toll the 10-year statute include:
Military Service: The IRS may toll the 10-year statute of limitations on collections if a taxpayer is serving in the military. A service member’s deployment in a combat zone can result in the SOL being tollled for up to 180 days. If a taxpayer is deployed for less than 180 days, the SOL is not tolled. However, this suspension period does not count toward the total amount of time that a taxpayer has to collect.
Filing for Bankruptcy: If a taxpayer files for bankruptcy, the collection statute of limitations is suspended for six months. Even if a taxpayer and the IRS agree to extend the SOL prior to filing for bankruptcy, the statute of limitations is suspended for the duration of the bankruptcy proceedings.
Entering into an Installment Agreement: The IRS may suspend or toll the 10-year collection statute of limitations if a taxpayer enters into an installment agreement. In most cases, an installment agreement will extend the collection period by at least six years. However, it is advisable to speak with a tax attorney before entering into an installment agreement.
Applying for an Offer in Compromise: If a taxpayer wishes to request an Offer in Compromise, the statute of limitations is suspended for 30 days while the IRS reviews the offer. However, if the IRS decides not to accept the offer, the statute of limitations is not suspended.
A taxpayer can also suspend or toll the 10-year collection statute by filing a Taxpayer Assistance Order. This is a form that can be filed by a taxpayer requesting assistance from the Taxpayer Advocate Service.
Take action to collect from any person who is not named in the installment agreement or proposed installment agreement
Getting a tax refund is a very nice thing, but if you don’t pay your taxes you might be subject to an assessment or worse. The good news is that there are ways to avoid getting hit with a tax bill. If you are a taxpaying business you can use a tax payment plan, or you can try to work out a repayment schedule with your accountant. There are also several private collection agencies that will assist you in your quest to recoup your hard earned cash. However, if you’re a private individual you should consult with a tax attorney before deciding on the best approach to take.
A tax agreement isn’t just for businesses – individuals can also benefit from the payment plan. If you’re looking to pay off your taxes in a lump sum, you can do so with a payment plan, or you can make regular payments using a credit card. You can also request a payment plan from the IRS through its Online Services program. To make the process as easy as possible, make sure you have all the required paperwork and information on hand. This can be done by using the Online Services site to create a new account. Once you have your account set up, you’ll be able to make payments online, by phone, or via a mobile app.
Getting an IRS tax payment plan can be a hassle, but it isn’t impossible. It’s important to make sure you’ve got enough funds in your account to cover your monthly payments. Failure to do so can result in you being hit with an NSF fee, or your bank account being frozen. If you’re unable to make payments on time, you may also be subject to garnishment of wages, bank accounts, and property. If you are unable to come up with the cash, you may want to look into a tax loan. There are many options out there, so it’s important to take the time to compare them before you sign on the dotted line. This is especially true if you don’t want to wind up in the IRS’s debt collection division.
IRS may file a counterclaim or third-party complaint in a refund action
Generally, the Internal Revenue Service (IRS) does not have settlement authority, however, in certain cases, it does have the power to refer some of the action. This is the case, for example, when the taxpayer and the United States enter into an interpleader action. It is also possible to have counsel intervene in a mortgage foreclosure without naming the United States.
In fact, there is a form that you can use to contact field collection personnel, and you can even use this form with a follow-up system such as the Intelligent Decision Support (IDRS) or other calendar system. This form is designed to help with open case monitoring actions.
The best way to do this is to use the Form 14187. The form is designed to help with the most important aspects of open case monitoring, such as receiving advisors and making sure they take the appropriate actions. The form also helps ensure your case is on track. In addition to the most common tasks, you may also have to notify counsel of important account changes. For example, if your client makes a payment on a car loan that is in default, you may need to notify your counsel that you need to initiate a lien on the vehicle.
The best way to make sure you are able to make these decisions is to have a clear understanding of the legal requirements associated with your case. For example, you may need to set up separate controls for related cases. Likewise, you may need to consider implementing the latest software technologies to ensure your field collections department has the tools it needs to make the most informed decisions.
In addition, you may need to have a good understanding of the relevant IRS policies and procedures, such as the levy and lien rules, before you can start to take advantage of your newfound authority. Finally, you may need to consider enlisting the assistance of outside advisors. A good example of this would be an attorney whose expertise is not limited to tax law. Alternatively, you may consider utilizing the services of an IRS contractor to assist with your case. Now that you have your answer to Does Installment Agreement Extend Statute Limitations call us if you need tax relief.