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Son-of-Boss Settlement Supplemental FAQs

Son-of-Boss Settlement Initiative

Supplemental FAQs

11/1/04

Q - What is the timeframe for making alternative collection arrangements if a taxpayer cannot submit full payment of the liabilities with the signed closing agreement?

A – Revenue Officers are available to answer questions regarding the collection process prior to the taxpayer signing the closing agreement.  However, a final determination will not be made on payment arrangements prior to the taxpayer signing the closing agreement.  Section 4(c) of Notice 2004-46 grants the taxpayer 30 days to sign and return the closing agreement.  An extension will be granted only under unusual circumstances.  The closing agreement should be signed and returned within 30 days with full payment of the liabilities or returned with complete financial statements.   A determination will be made on payment arrangements within 30 days of receipt of all necessary financial information by the Service.  

Q - Will a Notice of Federal Tax Lien be filed if full payment is not returned with signed closing agreement?

A – Generally, a Notice of Federal Tax Lien will be filed if the liability is not full paid.  An extension of time to full pay the liability can be granted for up to 120 days.  Under these circumstances, the filing of a Notice of Federal Tax Lien can be withheld.  An extension of time will not be granted if complete financial information has not been provided.  The filing of a Notice of Federal Tax Lien can be withheld if the taxpayer posts a bond or other acceptable collateral security.  See Internal Revenue Manual 5.12.2 for further reference. 
The following Q&A clarifies Q.4c.3 contained in the FAQs dated 5-28-04
Q--  The announcement requires either full payment at the time of signing the closing agreement or that the electing taxpayer make other arrangements.  How do I make other arrangements if I cannot make full payment?
A--  At the time a taxpayer submits their signed closing agreement, if the taxpayer does not make payment, the taxpayer must submit complete financial statements.  The taxpayer will be referred to a Collection Officer who will determine, within 30 days of receipt of all necessary financial information, the taxpayer's eligibility for other payment arrangements.  Once the alternative payment arrangements are finalized, the closing agreements will be executed by the Service and assessment will be made.  Failure to reach acceptable financial arrangements will make the taxpayer ineligible to participate in this settlement initiative.
 

Page Last Reviewed or Updated: 25-Nov-2013