Tax News

CCH (cch.taxgroup.com) reports:

The IRS has announced that new features have been added to enhance the interactive Online Payment Agreement application that is available on the IRS's website (www.irs.gov). The Online Payment Agreement application provides an easy way to resolve tax liabilities for those who have filed all required tax returns (see IR-2006-159). In addition, the IRS recently announced the automation of user fee calculations for taxpayers entering into installment agreements, so that taxpayers are no longer required to submit a paper Form 13844, Application for Reduced User Fee for Installment Agreements, to request a reduced user fee because eligibility for reduced user fees is now automatically determined by the IRS (see IR-2008-33; TAXDAY, 2008/03/05,I.2). The new enhancements permit:
(1) taxpayers to revise the payment amounts on their existing agreements and/or the payment due dates;
(2) taxpayers to revise an existing regular installment agreement into either a direct debit installment agreement, or a payroll deduction installment agreement;
(3) taxpayers to revise existing extensions to regular and direct debit installment agreements; and
(4) practitioners (with valid authorizations) to use --as alternative methods of authentication when requesting installment agreements for clients --either their caller ID, or the signature date from their approved Form 2848, Power of Attorney and Declaration of Representative.
Eligible taxpayers owing no more than $25,000 in combined tax, interest and penalties may self-qualify. Once self-qualified, a taxpayer may apply and receive immediate notification of approval on their application for an installment agreement, including pre-assessed agreements on 2007 Form 1040 liabilities and paperless direct debit agreements.
The online application is available on the IRS's web site. Use the pull-down menu titled "I need to..." and select "Set Up a Payment Plan" to get started. The online application is available seven days a week, but only during certain hours: Mondays through Fridays from 6:00 a.m. to 12:30 a.m. (Eastern time); Saturdays from 6:00 a.m. to 10 p.m.; and Sundays from 4:00 p.m. to 12:00 midnight.
IR-2008-77, 2008FED ¶46,461
Other References:
Code Sec. 6159
CCH Reference - 2008FED ¶37,181.20
Tax Research Consultant
CCH Reference - TRC FILEIND: 21,154.40
CCH Reference - TRC IRS: 45,112.15