Ten-Year Statute of Limitations Not Extended; Installment Agreement in Place When Waiver Was Solicited (Rosenbloom, TCM)

A settlement officer abused her discretion when she sustained a notice of levy against an attorney because the taxpayer had an installment agreement in place at the time a waiver of the ten-year statute of limitations for collecting overdue taxes was solicited. The taxpayer was able to produce a copy of the installment agreement. IRS tax transcripts established that the installment agreement had not been terminated but, rather, control of the installment agreement had been transferred to a local IRS office. Further, there was no jeopardy termination of the installment agreement prior to a bank levy initiated by the original revenue officer because the levy occurred after the revenue officer had received the taxpayer’s updated financial information that he requested.

M.L. Rosenbloom, TC Memo. 2011-140, Dec. 58,670(M)

Other References:

Code Sec. 6502

CCH Reference – 2011FED ¶39,028.20

Code Sec. 6159

CCH Reference – 2011FED ¶37,181.60

CCH Reference – 2011FED ¶37,181.75

Tax Research Consultant

CCH Reference – TRC IRS: 30,252

CCH Reference – TRC IRS: 51,056.30


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