Federal Tax Question

I don't know what it is, but you're smart to find out before signing. I personally wouldn't sign anything agreeing to toll (as in extend) the collectibility period. There is another important time period if bk is a possibility - something about taxes due (or assessed?) three or more years prior to bk filing date are dischargeable. But if at any time during that 3 year period you've had an offer-in-compromise pending, I think they add that time on to the 3 years.

Also, I've heard that as you get close to the time when they can no longer collect, the IRS tries to get you to sign some kind of waiver so they can have more time.

The IRS website has an incredible amount of information on it. I couldn't believe it, myself. There is a wealth of information there about how they collect, etc., if you like to research.

Good Luck.

 

Hal

The SOL for collectiong taxes is 10 years from the date of assessment. One of the ways the SOL can get extended if you sign a waiver. Depending upon the circumstances surrounding the approval of your installment agreement, you may be asked to sign a waiver to extend the SOL since your installment agreement would not pay off the debt within the SOL period. This is usually done on Form 900, which is separate from the installment agreement form. You would get a copy of the approved Form 900 from the IRS. The IRS has considered updating the installment agreement forms to include the waiver directly on those forms. I haven't seen the most recent installment agreement forms, so I don't know if they have done that yet. Read your installment agreement carefully to see if it is in there. If not, see if you have a copy of Form 900 (it's about the size of a 4 inch x 5 inch index card).

Now what I don't know is if you don't sign the waiver will the irs accept your installment plan. I am going to have lunch with a tax atty today so I will ask him that question and get back to you.

Hope this helps.

clc

 

That's unbelievable!