Payment Plan - Payroll Taxes

Discussion in 'Tax' started by Stuart A. Bronstein, Nov 4, 2014.

  1. A small corporation has been remiss in paying its payroll taxes - I
    guess they were skating on the edge financially. Now they owe a heck
    of a lot.

    The IRS auditor, properly, is saying she wants to hold the
    corporation officers personally liable. The problem is that she is
    refusing to allow a payment plan. The taxpayers figure they can
    afford to pay the taxes, interest and penalties, but only if they are
    allowed to pay over time.

    Is there anything you can think of to help convince the auditor to
    allow a payment plan?

    Thanks.
     
    Stuart A. Bronstein, Nov 4, 2014
    #1
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  2. Stuart A. Bronstein

    paultry Guest

    Are you, in fact, dealing with an auditor (Revenue Agent or
    other Examination employee)? If so, her installment
    agreement authority does not extend to in-business trust
    fund taxes. See IRM 4.20.4.2(4)

    "Installment agreements secured by Examination are
    pre-assessment agreements and limited to Individuals (IMF)
    without delinquent employment taxes, out-of-business sole
    proprietors, and in-business (BMF) taxpayers (Form 1120,
    "U.S. Corporation Income Tax Return" only)."

    It's more likely you are dealing with a Revenue Officer or
    other Collection employee. Can you confirm?
     
    paultry, Nov 4, 2014
    #2
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  3. Her business card says Revenue Officer. Does she (or anyone else)
    have discretion to allow an installment plan under the
    circumstances?

    What's a BFM taxpayer - I'm not familiar with that term.

    Thanks.
     
    Stuart A. Bronstein, Nov 4, 2014
    #3
  4. Stuart A. Bronstein

    paultry Guest

    Okay, that fits - Revenue Officer in Collection. BMF =
    Business Master File, which includes business related
    returns including 94X, 1120, 1065, etc.

    She has the discretion to allow an installment agreement in
    accordance with IRM guidelines. See IRM 5
    (http://www.irs.gov/irm/part5/index.html), including 5.7 and
    5.14 (among others) to see if your circumstances fit.

    The taxpayer will have to demonstrate full compliance with
    filing and depositing requirements (stop the bleeding) and
    inability to borrow or to liquidate non-essential assets to
    full pay to get to a serious installment agreement
    discussion. Note that there is a right to appeal rejections
    of requests for installment agreements. (See IRM 5.14.9.8.)

    As I may have said before on this forum, the IRM can be a
    practitioner's best friend. This is the only game I know of
    where the opposing team let's you see their playbook.

    In addition, I'd strongly suggest consultation with a local
    practitioner who specializes in collection matters (but NOT,
    IMO, one of the many nationwide 1-800 tax reps).
     
    paultry, Nov 4, 2014
    #4
  5. Stuart A. Bronstein

    caj11 Guest

    I say, find out who her manager is, and try working with them on this. It has worked for me before.
     
    caj11, Jan 2, 2015
    #5
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