26 U.S.C. § 6159 — Agreements for payment of tax liability in

Page 3500 TITLE 26—INTERNAL REVENUE CODE [§ 6158 EFFECTIVE DATE Pub. L. 91–53, § 4(a), Aug. 7, 1969, 83 Stat. 93, provided that: ‘‘The amendments made by the first two sections of this Act [enacting section 6317 and amending this section and sections 3306, 6201, 6513, and 6601 of this title] shall apply with respect to calendar years begin- ning after December 31, 1969.’’ EXTENSION OF TIME FOR PAYMENT OF ADDITIONAL FUTA TAXES Pub. L. 102–244, § 4, Feb. 7, 1992, 106 Stat. 4, provided that: ‘‘(a) IN GENERAL.—Notwithstanding any other provi- sion of law, if a qualified taxpayer is required to pay additional taxes for taxable years beginning in 1991 with respect to any employment in any State by reason of such State being declared a credit reduction State, such taxpayer may elect to defer the filing and pay- ment of such additional taxes to a date no later than June 30, 1992. ‘‘(b) INTEREST.—Notwithstanding subsection (a), for purposes of section 6601(a) of the Internal Revenue Code of 1986, the last date prescribed for payment of any ad- ditional taxes for which an election is made under sub- section (a) shall be January 31, 1992. ‘‘(c) DEFINITIONS.—For purposes of this section— ‘‘(1) QUALIFIED TAXPAYER.—The term ‘qualified tax- payer’ means a taxpayer— ‘‘(A) in a State which has been declared a credit reduction State for taxable years beginning in 1991, and ‘‘(B) who did not receive notice of such credit re- duction before December 1, 1991 from either the State unemployment compensation agency or the Internal Revenue Service. ‘‘(2) CREDIT REDUCTION STATE.—The term ‘credit re- duction State’ means a State with respect to which the Internal Revenue Service has determined that a reduction in credits is applicable for taxable years be- ginning in 1991 pursuant to the provisions of section 3302 of the Internal Revenue Code of 1986. ‘‘(d) TIME AND MANNER FOR MAKING ELECTION.—An election under this section shall be made at such time and in such manner as the Secretary of the Treasury shall prescribe.’’ WAGES PAID IN 1970 CALENDAR QUARTERS ENDING BEFORE AUGUST 10, 1970 Pub. L. 91–373, title III, § 301(b), Aug. 10, 1970, 84 Stat. 713, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘For purposes of section 6157 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to payment of Federal unemployment tax on quarterly or other time period basis), in com- puting tax as required by subsections (a)(1) and (2) of such section, the percentage contained in subsection (b) of such section applicable with respect to wages paid in any calendar quarter in 1970 ending before the date of the enactment of this Act [Aug. 10, 1970] shall be treated as being 0.4 percent.’’ [§ 6158. Repealed. Pub. L. 101–508, title XI, § 11801(a)(44), Nov. 5, 1990, 104 Stat. 1388–521] Section, added Pub. L. 94–452, § 3(a), Oct. 2, 1976, 90 Stat. 1512; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to in- stallment payment of tax attributable to divestitures pursuant to Bank Holding Company Act Amendments of 1970. Statutory Notes and Related Subsidiaries SAVINGS PROVISION For provisions that nothing in repeal by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liabil- ity for tax for periods ending after Nov. 5, 1990, see sec- tion 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. § 6159. Agreements for payment of tax liability in installments (a) Authorization of agreements The Secretary is authorized to enter into writ- ten agreements with any taxpayer under which such taxpayer is allowed to make payment on any tax in installment payments if the Sec- retary determines that such agreement will fa- cilitate full or partial collection of such liabil- ity. (b) Extent to which agreements remain in effect (1) In general Except as otherwise provided in this sub- section, any agreement entered into by the Secretary under subsection (a) shall remain in effect for the term of the agreement. (2) Inadequate information or jeopardy The Secretary may terminate any agree- ment entered into by the Secretary under sub- section (a) if— (A) information which the taxpayer pro- vided to the Secretary prior to the date such agreement was entered into was inaccurate or incomplete, or (B) the Secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy. (3) Subsequent change in financial conditions If the Secretary makes a determination that the financial condition of a taxpayer with whom the Secretary has entered into an agree- ment under subsection (a) has significantly changed, the Secretary may alter, modify, or terminate such agreement. (4) Failure to pay an installment or any other tax liability when due or to provide re- quested financial information The Secretary may alter, modify, or termi- nate an agreement entered into by the Sec- retary under subsection (a) in the case of the failure of the taxpayer— (A) to pay any installment at the time such installment payment is due under such agreement, (B) to pay any other tax liability at the time such liability is due, or (C) to provide a financial condition update as requested by the Secretary. (5) Notice requirements The Secretary may not take any action under paragraph (2), (3), or (4) unless— (A) a notice of such action is provided to the taxpayer not later than the day 30 days before the date of such action, and (B) such notice includes an explanation why the Secretary intends to take such ac- tion. The preceding sentence shall not apply in any case in which the Secretary believes that col- lection of any tax to which an agreement under this section relates is in jeopardy. Page 3501 TITLE 26—INTERNAL REVENUE CODE § 6159 (c) Secretary required to enter into installment agreements in certain cases In the case of a liability for tax of an indi- vidual under subtitle A, the Secretary shall enter into an agreement to accept the full pay- ment of such tax in installments if, as of the date the individual offers to enter into the agreement— (1) the aggregate amount of such liability (determined without regard to interest, pen- alties, additions to the tax, and additional amounts) does not exceed $10,000; (2) the taxpayer (and, if such liability relates to a joint return, the taxpayer’s spouse) has not, during any of the preceding 5 taxable years— (A) failed to file any return of tax imposed by subtitle A; (B) failed to pay any tax required to be shown on any such return; or (C) entered into an installment agreement under this section for payment of any tax imposed by subtitle A, (3) the Secretary determines that the tax- payer is financially unable to pay such liabil- ity in full when due (and the taxpayer submits such information as the Secretary may re- quire to make such determination); (4) the agreement requires full payment of such liability within 3 years; and (5) the taxpayer agrees to comply with the provisions of this title for the period such agreement is in effect. (d) Secretary required to review installment agreements for partial collection every two years In the case of an agreement entered into by the Secretary under subsection (a) for partial collection of a tax liability, the Secretary shall review the agreement at least once every 2 years. (e) Administrative review The Secretary shall establish procedures for an independent administrative review of termi- nations of installment agreements under this section for taxpayers who request such a review. (f) Installment agreement fees (1) Limitation on fee amount The amount of any fee imposed on an in- stallment agreement under this section may not exceed the amount of such fee as in effect on the date of the enactment of this sub- section. (2) Waiver or reimbursement In the case of any taxpayer with an adjusted gross income, as determined for the most re- cent year for which such information is avail- able, which does not exceed 250 percent of the applicable poverty level (as determined by the Secretary)— (A) if the taxpayer has agreed to make payments under the installment agreement by electronic payment through a debit in- strument, no fee shall be imposed on an in- stallment agreement under this section, and (B) if the taxpayer is unable to make pay- ments under the installment agreement by electronic payment through a debit instru- ment, the Secretary shall, upon completion of the installment agreement, pay the tax- payer an amount equal to any such fees im- posed. (g) Cross reference For rights to administrative review and appeal, see section 7122(e). (Added Pub. L. 100–647, title VI, § 6234(a), Nov. 10, 1988, 102 Stat. 3735; amended Pub. L. 104–168, title II, §§ 201(a), (b), 202(a), July 30, 1996, 110 Stat. 1456, 1457; Pub. L. 105–206, title III, §§ 3462(c)(2), 3467(a), July 22, 1998, 112 Stat. 766, 769; Pub. L. 105–277, div. J, title IV, § 4002(g), Oct. 21, 1998, 112 Stat. 2681–907; Pub. L. 108–357, title VIII, § 843(a), (b), Oct. 22, 2004, 118 Stat. 1600; Pub. L. 109–222, title V, § 509(c), May 17, 2006, 120 Stat. 363; Pub. L. 115–123, div. D, title II, § 41105(a), Feb. 9, 2018, 132 Stat. 157.) Editorial Notes REFERENCES IN TEXT The date of the enactment of this subsection, referred to in subsec. (f)(1), is the date of enactment of Pub. L. 115–123, which was approved Feb. 9, 2018. AMENDMENTS 2018—Subsecs. (f), (g). Pub. L. 115–123 added subsec. (f) and redesignated former subsec. (f) as (g). 2006—Subsec. (f). Pub. L. 109–222 substituted ‘‘section 7122(e)’’ for ‘‘section 7122(d)’’. 2004—Subsec. (a). Pub. L. 108–357, § 843(a)(1), sub- stituted ‘‘make payment on’’ for ‘‘satisfy liability for payment of’’ and inserted ‘‘full or partial’’ after ‘‘facili- tate’’. Subsec. (c). Pub. L. 108–357, § 843(a)(2), inserted ‘‘full’’ before ‘‘payment’’ in introductory provisions. Subsecs. (d) to (f). Pub. L. 108–357, § 843(b), added sub- sec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively. 1998—Subsec. (c). Pub. L. 105–206, § 3467(a), added sub- sec. (c). Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 105–277 redesignated subsec. (d), relating to cross reference, as (e). Pub. L. 105–206, § 3467(a), redesignated former subsec. (c), relating to administrative review, as (d). Pub. L. 105–206, § 3462(c)(2), added subsec. (d), relating to cross reference. Subsec. (e). Pub. L. 105–277 redesignated subsec. (d), relating to cross reference, as (e). 1996—Subsec. (b)(3). Pub. L. 104–168, § 201(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows: ‘‘(A) IN GENERAL.—If the Secretary makes a deter- mination that the financial condition of a taxpayer with whom the Secretary has entered into an agree- ment under subsection (a) has significantly changed, the Secretary may alter, modify, or terminate such agreement. ‘‘(B) NOTICE.—Action may be taken by the Secretary under subparagraph (A) only if— ‘‘(i) notice of such determination is provided to the taxpayer no later than 30 days prior to the date of such action, and ‘‘(ii) such notice includes the reasons why the Sec- retary believes a significant change in the financial condition of the taxpayer has occurred.’’ Subsec. (b)(5). Pub. L. 104–168, § 201(a), added par. (5). Subsec. (c). Pub. L. 104–168, § 202(a), added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–123, div. D, title II, § 41105(b), Feb. 9, 2018, 132 Stat. 157, provided that: ‘‘The amendments made by Page 3502 TITLE 26—INTERNAL REVENUE CODE § 6161 this section [amending this section] shall apply to agreements entered into on or after the date which is 60 days after the date of the enactment of this Act [Feb. 9, 2018].’’ EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–222, title V, § 509(d), May 17, 2006, 120 Stat. 364, provided that: ‘‘The amendments made by this sec- tion [amending this section and section 7122 of this title] shall apply to offers-in-compromise submitted on and after the date which is 60 days after the date of the enactment of this Act [May 17, 2006].’’ EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–357, title VIII, § 843(c), Oct. 22, 2004, 118 Stat. 1600, provided that: ‘‘The amendments made by this section [amending this section] shall apply to agreements entered into on or after the date of the en- actment of this Act [Oct. 22, 2004].’’ EFFECTIVE DATE OF 1998 AMENDMENTS Amendment by Pub. L. 105–277 effective as if included in the provision of the Internal Revenue Service Re- structuring and Reform Act of 1998, Pub. L. 105–206, to which such amendment relates, see section 4002(k) of Pub. L. 105–277, set out as a note under section 1 of this title. Amendment by section 3462(c)(2) of Pub. L. 105–206 ap- plicable to proposed offers-in-compromise and install- ment agreements submitted after July 22, 1998, see sec- tion 3462(e)(1) of Pub. L. 105–206, set out as a note under section 6331 of this title. Pub. L. 105–206, title III, § 3467(b), July 22, 1998, 112 Stat. 770, provided that: ‘‘The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [July 22, 1998].’’ EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–168, title II, § 201(c), July 30, 1996, 110 Stat. 1457, provided that: ‘‘The amendments made by this section [amending this section] shall take effect on the date 6 months after the date of the enactment of this Act [July 30, 1996].’’ Pub. L. 104–168, title II, § 202(b), July 30, 1996, 110 Stat. 1457, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall take effect on January 1, 1997.’’ EFFECTIVE DATE Pub. L. 100–647, title VI, § 6234(c), Nov. 10, 1988, 102 Stat. 3736, provided that: ‘‘The amendments made by this section [enacting this section and amending sec- tion 6601 of this title] shall apply to agreements en- tered into after the date of the enactment of this Act [Nov. 10, 1988].’’ STATEMENTS REGARDING INSTALLMENT AGREEMENTS Pub. L. 105–206, title III, § 3506, July 22, 1998, 112 Stat. 771, as amended by Pub. L. 106–554, § 1(a)(7) [title III, § 302(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–632, provided that: ‘‘The Secretary of the Treasury or the Secretary’s delegate shall, beginning not later than September 1, 2001, provide each taxpayer who has an installment agreement in effect under section 6159 of the Internal Revenue Code of 1986 an annual statement setting forth the initial balance at the beginning of the year, the payments made during the year, and the remaining bal- ance as of the end of the year.’’ Subchapter B—Extensions of Time for Payment Sec. 6161. Extension of time for paying tax. [6162. Repealed.] 6163. Extension of time for payment of estate tax on value of reversionary or remainder inter- est in property. 6164. Extension of time for payment of taxes by corporations expecting carrybacks. Sec. 6165. Bonds where time to pay tax or deficiency has been extended. 6166. Extension of time for payment of estate tax where estate consists largely of interest in closely held business. [6166A. Repealed.] 6167. Extension of time for payment of tax attrib- utable to recovery of foreign expropriation losses. Editorial Notes AMENDMENTS 1981—Pub. L. 97–34, title IV, § 422(e)(5)(C), Aug. 13, 1981, 95 Stat. 316, substituted in item 6166 ‘‘Extension of time’’ for ‘‘Alternate extension of time’’ and struck out item 6166A ‘‘Extension of time for payment of estate tax where estate consists largely of interest in closely held business’’. 1976—Pub. L. 94–455, title XIX, § 1906(b)(4), title XX, § 2004(f)(5), Oct. 4, 1976, 90 Stat. 1833, 1872, struck out item 6162 ‘‘Extension of time for payment of tax on gain attributable to liquidation of personal holding companies’’, added item 6166, and renumbered former item 6166 as 6166A. 1966—Pub. L. 89–384, § 1(g)(2), Apr. 8, 1966, 80 Stat. 104, added item 6167. 1958—Pub. L. 85–866, title II, § 206(b), Sept. 2, 1958, 72 Stat. 1684, added item 6166. § 6161. Extension of time for paying tax (a) Amount determined by taxpayer on return (1) General rule The Secretary, except as otherwise provided in this title, may extend the time for payment of the amount of the tax shown, or required to be shown, on any return or declaration re- quired under authority of this title (or any in- stallment thereof), for a reasonable period not to exceed 6 months (12 months in the case of estate tax) from the date fixed for payment thereof. Such extension may exceed 6 months in the case of a taxpayer who is abroad. (2) Estate tax The Secretary may, for reasonable cause, ex- tend the time for payment of— (A) any part of the amount determined by the executor as the tax imposed by chapter 11, or (B) any part of any installment under sec- tion 6166 (including any part of a deficiency prorated to any installment under such sec- tion). for a reasonable period not in excess of 10 years from the date prescribed by section 6151(a) for payment of the tax (or, in the case of an amount referred to in subparagraph (B), if later, not beyond the date which is 12 months after the due date for the last install- ment). (b) Amount determined as deficiency (1) Income, gift, and certain other taxes Under regulations prescribed by the Sec- retary, the Secretary may extend the time for the payment of the amount determined as a deficiency of a tax imposed by chapter 1, 12, 41, 42, 43, or 44 for a period not to exceed 18 months from the date fixed for the payment of the deficiency, and in exceptional cases, for a further period not to exceed 12 months. An ex-