The Internal Revenue Service (IRS) has extended its policy of granting express installment agreements for in business trust fund taxes through at least June 6, 2008. See IRS Memo dated June 6, 2007 Express installment agreements are available to in-business taxpayers who have payroll tax problems of less than $10,000. These taxpayers may allowed to enter into installment agreements without providing a completed Collection Information Statement (IRS Form 433-B). An express installment agreement can’t last longer than 24 months. Taxpayers requesting express installment agreements must be in compliance with all IRS tax deposit and tax filing requirements as set forth in Internal Revenue Manual (IRM) 184.108.40.206.1. In addition if a taxpayer qualifies for an express installment agreement then:
• No Trust Fund Recovery Penalty determination is required; however the revenue officer must ensure that the Assessment Statute Expiration Date (ASED) is protected.
• No managerial approval is required.
• A lien determination is required.
Thus in all probability even if an express installment agreement is granted then an IRS tax lien will be filed. See IRM 220.127.116.11.2.
If you or your company owes in excess of $75,000 in payroll taxes to the IRS or have other IRS or California payroll tax problems call California tax attorney Dennis Brager.