I think given his income has been declining over time, he's going to do it every single tax quarter, like he's already said.
A point of interest is that people were saying that if he went with a payment plan and missed a single payment he would be fucked. However, based on research this appears to be untrue. He would however get penalties for the missed payments and he would have to sign an agreement which would potentially put a tax warrant/lien on him.
If he did get a tax lien that would basically be, as the article I've linked below says "
As bad as a bankruptcy":
“The impact a tax lien has on a consumer’s credit score depends on the consumer’s unique financial history, as well as the credit score model that’s being used,”
https://www.creditcards.com/credit-card-news/how-does-tax-lien-affect-credit-score.php
The other interesting thing I found when it comes to payment plans (at least state taxes, this doesn't necessarily apply for federal taxes) is that he may not even quality for a payment plan:
View attachment 421302
https://dor.wa.gov/file-pay-taxes/late-filing/delinquent-tax-collection-process
Note the
"if you quality" part.
What's not really known is that these are state backtaxes with no malice or intent to defraud so its possible they are a whole lot more open to doing payment plans.
So the question here has really become, was Phil trying to raise money to bulk pay the entire back tax amount to avoid a potential tax lien? Is Phil being on a payment plan for his backtaxes actually just as bad as declaring bankruptcy in the first place?
Additional laws:
http://apps.leg.wa.gov/WAC/default.aspx?cite=458-20-217
http://app.leg.wa.gov/RCW/default.aspx?cite=82.32.210
However, things get even more confusing once you read more:
View attachment 421304
My understanding of this, is that if Phil were to not declare bankruptcy and sell the house, which is undeniably his primary way he could
actually pay off these backtaxes the state government might say fuck you and send him a bill for the entire amount,
even if he was on a payment plan previously.
There are very many ways to read into this entire situation, but it looks even messier than most people have claimed it is ("oh he can just go on a payment plan!"). It really looks like whichever way Phil walks, besides declaring bankruptcy will be a huge series of compounding events involving the IRS, the Washington Department or Revenue, banks, credit card companies, mortgage companies and a million other people all sending him notices to pay at once.
It would seem that if he actually agrees to a payment plan he is essentially fully tying himself to staying in the Renton Palace until he fully settles the outstanding tax amount and if he ever decided to sell the state government might decide to say "fuck you" and force him to pay the entire amount.