VIEWS: 6 PAGES: 8 CATEGORY: Business & Economics POSTED ON: 6/26/2010
T.D. 9473, under Section 6159, relates to the payment of tax liabilities in installments and reflects changes to the law made by the Taxpayer Bill of Rights II, the Internal Revenue Service Restructuring and Reform Act of 1998, and the American Jobs Creation Act of 2004.
Section 6159.—Agree- 1457 (1996)). Taxpayers may appeal Summary of Comments and ments for Payment of Tax rejections of proposed installment agree- Explanation of Revisions Liability in Installments ments under section 7122(e), added to the Code by section 3462 of Internal Revenue The final regulations adopt certain 26 CFR 1.301.6159–0: Table of contents. Service Restructuring and Reform Act of recommendations contained in the com- 1998 (RRA 98), Public Law 105–206 (112 ments by clarifying two provisions of T.D. 9473 Stat. 685, 764 (1998)). Section 6159(c), the proposed regulations. As explained added to the Code by section 3467 of RRA in this preamble, §301.6159–1(e)(3) was DEPARTMENT OF THE 1998, requires the IRS to accept a pro- amended to clarify that the taxpayer may posed installment agreement for income submit a request to modify or termi- TREASURY nate the installment agreement. Section taxes under certain circumstances. Sec- Internal Revenue Service 301.6159–1(e)(3) further clarifies that tion 3506 of RRA 1998 requires the IRS 26 CFR Part 301 to send each taxpayer with an installment such a request will not suspend the statute agreement an annual statement showing of limitations on collection and the tax- Agreements for Payment of the balance due at the beginning of the payer must comply with the existing Tax Liability in Installments year, the payments made during the year, installment agreement while the request and the remaining balance due at the end is being considered. As also explained AGENCY: Internal Revenue Service of the year. in this preamble, §301.6159–1(e)(1)(i) (IRS), Treasury. Section 843 of the American Jobs Cre- clarifies that the IRS may terminate an ation Act of 2004 (AJCA), Public Law installment agreement if the taxpayer pro- ACTION: Final Regulations. 108–357 (118 Stat. 1418, 1600 (2004)), vides materially incomplete or inaccurate amended section 6159(a) to allow the IRS information in response to an IRS request SUMMARY: This document contains fi- to enter into installment agreements that for a financial update. nal regulations relating to the payment of provide for partial (as well as full) pay- The following is a section-by-section tax liabilities in installments. The regu- ment of a tax liability, but excludes partial analysis of the comments. lations reflect changes to the law made payment installment agreements from the by the Taxpayer Bill of Rights II, the In- Section 301.6159–1(b): Procedures for scope of installment agreements that must ternal Revenue Service Restructuring and submission and consideration of proposed be accepted by the IRS. Section 843 of the Reform Act of 1998, and the American installment agreements. AJCA also added new section 6159(d), re- Jobs Creation Act of 2004. The regula- quiring the IRS to review partial payment Section 301.6159–1(b) of the proposed tions will affect taxpayers submitting in- installment agreements every two years. regulations provided that an installment stallment agreements to the IRS. The primary purpose of the review is to agreement request must be submitted ac- determine whether the financial condition cording to procedures prescribed by the DATES: Effective Date: These regulations of the taxpayer has significantly changed are effective on November 25, 2009. IRS. It did not require the IRS to accept so as to warrant an increase in the value or reject the request within a specific time Applicability Date: For the date of ap- of the payments being made. See H. Rep. plicability, see §301.6159(k). frame. The commenter proposed to limit No. 108–755, 108th Cong., 2d Sess., 2005 the IRS’s time to consider an installment U.S.C.C.A.N. 1341 (October 7, 2004). agreement to 90 days; if the IRS fails to FOR FURTHER INFORMATION On March 5, 2007, a notice of proposed act in that time, the agreement would be CONTACT: Walter Ryan, (202) 622–3620 rulemaking (REG–100841–97, 2007–1 granted automatically. The commenter (not a toll-free number). C.B. 763 [72 FR 9712]) was published reasoned that the limited time frame would in the Federal Register. The proposed benefit the IRS because more installments SUPPLEMENTARY INFORMATION: regulations reflected the changes made agreements would be automatically al- Background to section 6159 by the Taxpayer Bill of lowed, thereby increasing revenues, and Rights II, the RRA 98, and the AJCA. The would benefit the taxpayer by allowing This document contains amendments proposed regulations reflected current IRS payments to begin quickly and efficiently. to the Procedure and Administration Reg- administrative practice. The IRS received The recommendation was not adopted ulations (26 CFR part 301) under section one set of written comments with numer- for two reasons. First, the IRS already 6159 of the Internal Revenue Code (Code). ous recommendations. No public hearing grants installment agreements quickly Section 6159 allows the IRS to enter into was requested or held. After consideration and automatically in the vast majority agreements for the payment of any unpaid of the comments, the proposed regulations of cases. If the taxpayer owes
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