Form 668 Z
pa...@eastbaytaxmatters.com
Hi Everyone/
This is a first for me.
Client received a signed Form 668Z release of tax lien filed. On the form it still shows a remaining balance of $108,000. He has been on an installment agreement for the last 10 years. Just not paid off. He was paying $500 per month and never missed a payment. He has a good income and when we set up the installment agreement in 2015 the IRS was pretty lenient in the payment required for the IA.
Does the release of lien indicate that his remaining balance is no longer collectable/enforceable?
Thank you
EAST BAY Tax Matters
PATRICIA PRINGLE, EA
Enrolled Agent - NTPI Fellow
Federally Licensed - Available Year Round
6400 Village Parkway, Suite 201
Dublin, California 94568
Direct (925) 320-7802 Fax (925) 553-3515
pa...@eastbaytaxmatters.com
www.eastbaytaxmatters.com INDIVIDUAL & SMALL BUSINESS TAX PREPARATION & REPRESENTATION
In the United States of America, an Enrolled Agent (EA) is a tax advisor, who is a federally authorized tax practitioner which is empowered by the U.S. Department of the Treasury. Enrolled Agents represent taxpayers before the Internal Revenue Service (IRS) for tax issues that include audits, collections, and appeals. Enrolled Agent status is the highest credential awarded by the IRS.
Lee Reams
The release of a tax lien, as indicated by Form 668Z, generally means that the IRS has released its claim on the property that was subject to the lien. However, it does not necessarily mean that the underlying tax debt is no longer collectible or enforceable. The remaining balance of $108,000 still exists, and the taxpayer is still responsible for paying it off.
Here are a few key points to consider:
Release of Lien vs. Satisfaction of Debt: The release of a lien means that the IRS no longer has a legal claim on the taxpayer's property to secure the tax debt. It does not mean that the debt itself has been forgiven or satisfied.
Installment Agreement: Since the taxpayer has been on an installment agreement and has been making consistent payments, the IRS may have determined that the lien is no longer necessary to secure the debt. However, the taxpayer is still obligated to continue making payments under the terms of the installment agreement until the debt is fully paid off.
Statute of Limitations: The IRS generally has a 10-year statute of limitations to collect tax debts, starting from the date the tax was assessed. If the installment agreement has been in place for 10 years, it's possible that the statute of limitations is nearing its end. However, certain actions, such as entering into an installment agreement, can toll (pause) the statute of limitations.
Lee
On Jul 9, 2024, at 7:33 AM, pa...@eastbaytaxmatters.com wrote:Hi Everyone/This is a first for me.
Client received a signed Form 668Z release of tax lien filed. On the form it still shows a remaining balance of $108,000. He has been on an installment agreement for the last 10 years. Just not paid off. He was paying $500 per month and never missed a payment. He has a good income and when we set up the installment agreement in 2015 the IRS was pretty lenient in the payment required for the IA.
Does the release of lien indicate that his remaining balance is no longer collectable/enforceable?
Thank you
 |
| ||||||||||||
| |||||||||||||
