01 / 04 / 12

GOOD TO KNOW: Installment Payments

When it comes to making installment payments to pay off a tax debt, it used to be that the IRS wouldn't agree to the arrangement if the taxpayer's debt would not get paid off before the statute of limitations ran out. But thanks to Congress, this is no longer the case. Code section 6159(a) now makes it to where the IRS must take into consideration your entire financial situation before deciding on an installment agreement. There may be ways of approaching the IRS in a manner that can use the Statute of Limitations to your advantage.