Apr 30, 2008

120-day extension to full pay?? Not always..

In the IRS press release on April 7th of this year they stated that one option you may get to resolve your tax debt is a "short-term payment extension of 120 days." For those in the IRS it is historically referred to as a "120 day to full pay." However, this is not an "automatic." You will need to negotiate it if you debt is over $10,000.


The IRS offers the "Online Payment Arrangement" option to get an extension to full pay. It also allows you to enter into an Installment Agreement. However, the extension can only be granted once and the OPA is not an effective manner to achieve this result. There are multiple levels in the on-line process that defaults you out of the agreement.

The IRS has not published any successful usage of the OPA. More importantly, I would like to see the rationale on why this method was unsuccessful. Experience shows that most would not qualify for compliance reasons (i.e. unfiled returns).

If you need an extension to pay and this is a low amount and you are in compliance, by all means, try the OPA. If you situation is more complicated, then you will need an experienced tax professional.

0 responses:

  © Blogger templates The Professional Template by Ourblogtemplates.com 2008

Back to TOP