"Gene E. Utterback, EA" <eagent[at]alliancetax.com> wrote:
- quote -

Form 900

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"D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:
- quote -

That's good to know. Have they changed that rule at all?
Your wording implies that more recent installment agreements
might extend the collection statute.

- quote -

Thanks, I'll do that.

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"jm2545[at]yahoo.com" <julie[at]attbi.com> wrote:

- quote -

Julie, under current rules, the IRS can make you sign a
waiver of the statute of limitations for up to five years in
conjunction with an Installment Agreement in order for the
taxes to be paid in full. Sorry for the long, run-on
sentence.

In your case, the question starts with when did you file
those returns? If you filed them on time, the remaining time
on the statute may be pretty short, meaning that the IRS
would not be able to collect the full amount owed before the
statutes of limitations expire. If you filed very late,
there should be sufficient time to collect the tax prior to
the statute expiration.

My suggestion would be to contact the IRS & get a record of
account and determine when the returns were filed, when the
statutes will expire and approximately how long it will take
to pay off the tax, penalties and interest. Then, feel free
to contact me or any other tax practitioner and figure out
what to do next.

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jm2545[at]yahoo.com wrote:

- quote -

Installment agreements (when you signed it) don't extend the
collection statute. However, note that the 10 year clock
STARTS from the date of the assessment, which might not be
the same as the filing of the return. You need to order a
transcript of your account and see on what date the tax was
actually assessed (look for transaction codes 150 [your
return] and 300 [supplemental assessments]).

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"jm2545[at]yahoo.com" <julie[at]attbi.com> wrote:

- quote -

The statute is only extended if you signed an agreement to
extend the statute of limitations for collections - Form 872
I think. If the IRS didn't get you to sign that at the time
in 99 you may be off the hook, but don't count on it.

First, if the liability was for 1994, that return was not
due until 94, which runs that statute until 2004 - the end
of NEXT year, not this year.

Second, IRS could very well institute aggressive collection
actions to make sure they collect prior to the statute
expiring. For instance, they could levy your bank account
or lien your home. They have gotten pretty aggressive about
this in the last few years.

You might want to consult with a professional comfortable
with the Offer in Compromise procedure. You might find that
you can reach a compromise by showing that you have paid the
tax and interest in full and are paying nothing now other
than penalty, then offering to settle the case for a token
payment under the Effective Tax Administration theory.
Since the end of the statute is approaching the IRS may be
amenable to settling this rather than taking aggressive
collection actions. But I would advise you that an OIC
under these circumstances is NOT something that should be
attempted by an amatuer.

Good luck,
Gene E. Utterback, EA

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- quote -

The only way to find out is get a copy of your account
(transcript) and check the assessment date. That is your
starting point for the 10 year statute. If you did not file
your 93 return until 95 or so and IRS did not do an SFR, you
have at least a few more years.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
1040EZ and 1040A tax prep at www.1040.com/1040pro

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I owe the IRS back taxes for 93-94. In 99 I made an installment
agreement with them to pay off what I owe at the rate of $300 a
month. As of now I owe approximately $8000 for 93. (Penalties and
interest are a killer, I already more than paid the principle.)

Anyway, what happens at the end of this year? I know that the IRS
has 10 years to collect the debt, but is that extended indefinitely
because I signed an installment agreement with them?

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