- Instructor: Attorney Bob Schaller
- Lectures: 1
- Quizzes: 1
Understanding “Pending” Installment Agreement Requests.
The IRS sets forth its criteria for identifying “pending” agreements in IRM § 5.14.1.3 (07-16-2018). Before the IRS will identify an installment agreement as “pending,” the taxpayer must do the following: (a) provide information sufficient to identify the taxpayer – generally, the taxpayer’s name and taxpayer identification number (TIN); (b) identify the tax liability to be covered by the agreement; (c) propose a monthly or other periodic payment of a specific amount; (d) not be in bankruptcy, unless the installment agreement meets Guaranteed Installment Agreement criteria and is for post-petition liabilities; (e) not be proposing an installment agreement for a Restitution Based Assessment (RBA) that will not fully satisfy the RBA by the collection statute expiration date; and (f) be in compliance with filing requirements. IRM § 5.14.1.3(4) (07-16-2018). Taxpayers can shield themselves against a levy threat with an installment agreement because, generally, no levy will be made while an installment agreement is “pending.” IRM § 5.14.1.1.1(1) (07-16-2018). However, merely “requesting” an installment agreement is not sufficient to shield against a levy threat. A taxpayer receives protection from IRS collection action only after the installment agreement request is initially processed by the IRS and deemed “pending.” Taxpayers need to provide the IRS with specific information to start the processing. IRM § 5.14.1.3(4) (07-16-2018).
