I have a new client (thanks to you all at TRNLLC) and I’m working on a regular installment agreement.
Since the amount owed is over 50,000 and they had a previous installment agreement they do not qualify for the streamed lined agreement. They have the ability to full pay so they can’t do an OIC.
My question is, does it matter if they have paid down family loans or credit cards with their available cash balances 3 months before they apply for the installment agreement?
My understanding is that this concept only applies to OICs but not regular installment agreements.
On a similar note, will the IRS negotiate any penalties during an installment agreement?
BTW, my blogging after 2-3 months got me another new client last night!