Tuesday, December 23, 2014

The IRS Is Barred from Collection Procedures Where an Installment Agreement Exists - Tax Court

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6RsNdd_I05nmiYbky_VQplRaiNDYrIPnhmWgWDORt9R5dY-FaeH1CDHeVr7FqZ-kquYchxwLsWKu0csmp84TvI-dfUJj-a_Us0yRuRTV6EC6i2T9dvevnF1W_yfwtWoOLT0AGxAs5Sn-S/s1600/Gavel+and+Flag.jpgProcedurally Taxing has a post Appeals Fumbles CDP Case and Resulting Resolution Demonstrates Power of Installment Agreement which analyzes the recent Tax Court decision Jurate Antioco v. Comm. TC Memo. 2013-35 dated November 17, 2014; where the Tax Court brought to an end the Collection Due Process (CDP) case of Jurata Antioco.  

The order also grants attorney’s fees of slightly over $40,000 and decides that the IRS “may not proceed with the collection . . . as described in the Notice of Determination . . . .”

The case points to the silent power of an Installment Agreement (IA). The IRS enters into many IAs in a very informal manner.  Frequently, they come into existence with no written document based on a phone call with someone at the Automated Collection Site (ACS). 

Taxpayers frequently fail to fulfill their obligations under the IA, but it takes some time before the IRS formally terminates the IA. 

Because of the prohibitions on administrative and judicial collection, while there is an IA in existence, taxpayer’s may receive protection from collection for an extended period.  

Among other benefits, this period of prohibition of collection activity can benefit a taxpayer seeking to pass the time frames for bankruptcy priority periods in order to obtain a discharge of the debt.

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