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Subject Author Date
Can taxpayer revoke installment agreement? davidrosenbaum 05-22-2008
Posted by davidrosenbaum on May 22, 2008, 11:28 am
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 I know it's a weird question, but if the taxpayer suddenly gets a
large chunk of money, can he tell the IRS, "forget our agreement,
here's the balance"?

If so, is there any sort of early payment penalty or the like?

Thanks.

David Rosenbaum

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Posted by Phil Marti on May 22, 2008, 11:55 am
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>I know it's a weird question, but if the taxpayer suddenly gets a
> large chunk of money, can he tell the IRS, "forget our agreement,
> here's the balance"?

Absolutely.

> If so, is there any sort of early payment penalty or the like?

Nope.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Paul Thomas, CPA on May 22, 2008, 11:57 am
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>I know it's a weird question, but if the taxpayer suddenly
> gets a large chunk of money, can he tell the IRS,
> "forget our agreement, here's the balance"?




You don't even have to explain it. They'll take payment for the remaining
balance at any time.



> If so, is there any sort of early payment penalty or the like?




Nope. None at all. If you're contemplating this, call the IRS to get a
pay-off balance "as of" a certain date.

There may be some small balance due of unpaid interest or overpayment if you
send the check in later or earlier than the date the interest is computed
through.


And of course, there'll be some follow up notices for up to a few months.





--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on May 22, 2008, 1:44 pm
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On May 22, 8:57 am, "Paul Thomas, CPA"

> Nope.  None at all.  If you're contemplating this, call the IRS to get a
> pay-off balance "as of" a certain date.

It's not possible to reach the IRS these days as they're so busy.
After you select a few choices and enter your social security number
the phone, it cuts you off due to the large call volume.

>From my previous post on this topic last week -- my question was where
to mail a check to pay off your installment balance early -- the
response was to mail it to the normal place where you mail your tax
return with payment. So then one would mail a check (with the social
security number in the memo field) to the address shown on 1040-V, and
preferrably a form 1040-V along with it; make a photocopy of the form
1040-V, send the check and 1040-V by certified mail, and keep a copy/
image of the cleared check. But my preferred way would be to pay on
EFTPS -- select the tax period as 2007 and not sure what to select for
the payment type. On the EFTPS website you can print out PDF receipts
of each payment you made.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by davidrosenbaum on May 22, 2008, 8:10 pm
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On May 22, 8:44 pm, "removeps-gro...@yahoo.com" <removeps-
gro...@yahoo.com> wrote:
> On May 22, 8:57 am, "Paul Thomas, CPA"
>
> > Nope.  None at all.  If you're contemplating this, call the IRS to get a
> > pay-off balance "as of" a certain date.
>
> It's not possible to reach the IRS these days as they're so busy.
> After you select a few choices and enter your social security number
> the phone, it cuts you off due to the large call volume.
>
> >From my previous post on this topic last week -- my question was where
>
> to mail a check to pay off your installment balance early -- the
> response was to mail it to the normal place where you mail your tax
> return with payment.  So then one would mail a check (with the social
> security number in the memo field) to the address shown on 1040-V, and
> preferrably a form 1040-V along with it; make a photocopy of the form
> 1040-V, send the check and 1040-V by certified mail, and keep a copy/
> image of the cleared check.  But my preferred way would be to pay on
> EFTPS -- select the tax period as 2007 and not sure what to select for
> the payment type.  On the EFTPS website you can print out PDF receipts
> of each payment you made.

Thanks to everyone for their thoughts!

David

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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