Need Quick Answer To Statute Question

[mukiman]

What is the name of your state? California
It has been established to my satisfaction that in Ca. the statue of limitation with the IRs is 10 years from the date of assessment. BUT, if you enter into an offer in compromise is extends the statute time.
So.... heres my question: If you agree to a payment plan that is not paid off for 5 years from today, but the statute time runs out in 9 months from today does it prolong the statute time for the 5 years or do you just get to stop paying in 9 months? I keep getting conflicting answers, even from my tax attorneys office !!!! UGH !
Mukis wife (Debbie)

 

[LdiJ]

What is the name of your state? California
It has been established to my satisfaction that in Ca. the statue of limitation with the IRs is 10 years from the date of assessment. BUT, if you enter into an offer in compromise is extends the statute time.
So.... heres my question: If you agree to a payment plan that is not paid off for 5 years from today, but the statute time runs out in 9 months from today does it prolong the statute time for the 5 years or do you just get to stop paying in 9 months? I keep getting conflicting answers, even from my tax attorneys office !!!! UGH !
Mukis wife (Debbie)

It prolongs the SOL. Otherwise the IRS would never enter into the agreement in the first place.

 

[mukiman]

It prolongs the SOL. Otherwise the IRS would never enter into the agreement in the first place.

Thanks that was exactly what I thought.
But, now Im even more confused.
We had to go back to the tax attny. this am. (unexpectedly) and she says "no" that it does not prolong the statute. So, now Im not sure what to think???
I don't want to say i don't believe the attny. but it simply makes no sense, and all she could add was that the government often does not make sense.
And as far as Im concerned the IRS never does.

Debbie

 

[LdiJ]

Thanks that was exactly what I thought.
But, now Im even more confused.
We had to go back to the tax attny. this am. (unexpectedly) and she says "no" that it does not prolong the statute. So, now Im not sure what to think???
I don't want to say i don't believe the attny. but it simply makes no sense, and all she could add was that the government often does not make sense.
And as far as Im concerned the IRS never does.

Debbie

Well... I don't know what to think at this point. I hesitate to disagree with the tax attorney but this happens to be something that I recently studied (working on my masters) and I hesitate to call my professors wrong either...since they tend to stay really top of things. Case law seems to back up my position too...although I could have missed something.

I guess at this point I would consult another tax attorney. However I can't imagine how it wouldn't prolong the SOL...because the installment agreement is both a legal agreement and an acknowledgement of the debt.

 

[mukiman]

I agree 100%.
The tax attorney is requesting transcripts from the IRS.
She said she will follow up with me in the next week.
I'll let you know the outcome just for your own info.
Thanks for your time.
Debbie

 

[Snipes5]

I don't think they can "automatically" extend the statute when an OIC is signed, but it is quite probable that there is language in the OIC that specifically extends the statute if the OIC is accepted.

Snipes