Legal Question in Business Law in California

First, let me start out by saying, as you may already know, that the IRS has a policy they call the "100% penalty" under which they can hold an individual responsible for the trust-fund (withheld from employees) portion of payroll taxes, even though that individual was only the person signing paychecks for a corporation. See Internal Revenue Code section 6672.

In answer to your question, the IRS will probably continue to accept the monthly payments, particularly if you have negotiated an agreement with it and never miss a timely payment or bounce a check to them. However, the IRS is somewhat untrusting and known to change its mind if it gets apprehensive about the taxpayer's commitment and/or ability to carry out a payment plan.

Also, if you do receive an inheritance, it would not be wise to try to conceal it from the IRS or other creditors. Just make your payments religiously, on time, and by cashier's check if that is part of your agreement.

As a franchise attorney I can only add the following. Look into the interest rate the IRS is charging on your time payments. It made be worthwhile to consider paying off your IRS debt in full once you have the inheritance if the interest rate is too high. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC