Payment Plan - Payroll Taxes

A small corporation has been remiss in paying its payroll taxes - I guess they were skating on the edge financially. Now they owe a heck of a lot.
The IRS auditor, properly, is saying she wants to hold the corporation officers personally liable. The problem is that she is refusing to allow a payment plan. The taxpayers figure they can afford to pay the taxes, interest and penalties, but only if they are allowed to pay over time.
Is there anything you can think of to help convince the auditor to allow a payment plan?
Thanks.
Reply to
Stuart A. Bronstein
Are you, in fact, dealing with an auditor (Revenue Agent or other Examination employee)? If so, her installment agreement authority does not extend to in-business trust fund taxes. See IRM 4.20.4.2(4)
"Installment agreements secured by Examination are pre-assessment agreements and limited to Individuals (IMF) without delinquent employment taxes, out-of-business sole proprietors, and in-business (BMF) taxpayers (Form 1120, "U.S. Corporation Income Tax Return" only)."
It's more likely you are dealing with a Revenue Officer or other Collection employee. Can you confirm?
Reply to
paultry

Her business card says Revenue Officer. Does she (or anyone else) have discretion to allow an installment plan under the circumstances?
What's a BFM taxpayer - I'm not familiar with that term.
Thanks.
Reply to
Stuart A. Bronstein
Okay, that fits - Revenue Officer in Collection. BMF Business Master File, which includes business related returns including 94X, 1120, 1065, etc.
She has the discretion to allow an installment agreement in accordance with IRM guidelines. See IRM 5
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, including 5.7 and 5.14 (among others) to see if your circumstances fit. The taxpayer will have to demonstrate full compliance with filing and depositing requirements (stop the bleeding) and inability to borrow or to liquidate non-essential assets to full pay to get to a serious installment agreement discussion. Note that there is a right to appeal rejections of requests for installment agreements. (See IRM 5.14.9.8.)
As I may have said before on this forum, the IRM can be a practitioner's best friend. This is the only game I know of where the opposing team let's you see their playbook.
In addition, I'd strongly suggest consultation with a local practitioner who specializes in collection matters (but NOT, IMO, one of the many nationwide 1-800 tax reps).
Reply to
paultry
I say, find out who her manager is, and try working with them on this. It has worked for me before.
Reply to
caj11

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