Home Page link  

New installment agreement after default?

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
New installment agreement after default? Hyperformance81 06-20-2006
Posted by Hyperformance81 on June 20, 2006, 2:12 am
Please log in for more thread options
 I recently hired an attorney/tax advisor to work on my
behalf with the IRS on my tax issues. I owed $2067.00 for
my 2004 Federal income tax. I was able to get an installment
agreement approved for this amount and have made payments as
requested for the last year. Unfortunately, I owed $5828.62
for my 2005 Federal income tax. This obviously caused my
2004 installment agreement to default. According to my tax
advisor, the IRS can (and will) approve a NEW installment
agreement for both years combined. I filled out all the
paperwork and have yet to receive an answer but my question
is whether or not this is true or likely after defaulting?
I'm trying to ease my mind...

Thanks.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Phil Marti on June 21, 2006, 1:31 am
Please log in for more thread options
> I recently hired an attorney/tax advisor to work on my
> behalf with the IRS on my tax issues. I owed $2067.00 for
> my 2004 Federal income tax. I was able to get an installment
> agreement approved for this amount and have made payments as
> requested for the last year. Unfortunately, I owed $5828.62
> for my 2005 Federal income tax. This obviously caused my
> 2004 installment agreement to default. According to my tax
> advisor, the IRS can (and will) approve a NEW installment
> agreement for both years combined. I filled out all the
> paperwork and have yet to receive an answer but my question
> is whether or not this is true or likely after defaulting?

They probably will.

Not that you asked, but you're not getting very good advice
from your advisor. You're digging a deeper hole each year,
and until you address making sure that THIS year's taxes get
paid on time, you'll be throwing more and more money away on
late payment charges.

It's really the same thing as using credit cards for things
like groceries and not paying the bills in full.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Mike Wellman on June 21, 2006, 1:31 am
Please log in for more thread options
Hyperformance81 wrote:

> I recently hired an attorney/tax advisor to work on my
> behalf with the IRS on my tax issues. I owed $2067.00 for
> my 2004 Federal income tax. I was able to get an installment
> agreement approved for this amount and have made payments as
> requested for the last year. Unfortunately, I owed $5828.62
> for my 2005 Federal income tax. This obviously caused my
> 2004 installment agreement to default. According to my tax
> advisor, the IRS can (and will) approve a NEW installment
> agreement for both years combined. I filled out all the
> paperwork and have yet to receive an answer but my question
> is whether or not this is true or likely after defaulting?
> I'm trying to ease my mind...

Yes, they will approve another one but more attention will
be paid to whether you are incurring future liabilites due
to under withholding or failure to make estimated tax
payments. This problem needs to be addressed so you don't
end up in the same position next year.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by mytax on June 23, 2006, 10:18 pm
Please log in for more thread options
Mike Wellman wrote:
> Hyperformance81 wrote:

>> I recently hired an attorney/tax advisor to work on my
>> behalf with the IRS on my tax issues. I owed $2067.00 for
>> my 2004 Federal income tax. I was able to get an installment
>> agreement approved for this amount and have made payments as
>> requested for the last year. Unfortunately, I owed $5828.62
>> for my 2005 Federal income tax. This obviously caused my
>> 2004 installment agreement to default. According to my tax
>> advisor, the IRS can (and will) approve a NEW installment
>> agreement for both years combined. I filled out all the
>> paperwork and have yet to receive an answer but my question
>> is whether or not this is true or likely after defaulting?
>> I'm trying to ease my mind...

> Yes, they will approve another one but more attention will
> be paid to whether you are incurring future liabilites due
> to under withholding or failure to make estimated tax
> payments. This problem needs to be addressed so you don't
> end up in the same position next year.

Former IRS here...I would say that if this is the first time
you defaulted and do not have a history of owing the IRS
then you probably will get your installment agreement
reinstated with the combined amounts...However, as has been
stated here, you really need to address the issue of why you
owe a balance each year. Your tax advisor should be working
closely with you to insure that you either have sufficient
withholding if you are employed...or that you are paying the
proper amounts of estimated taxes if you are self-employed
or have some other events during the year where your income
goes up. IRS does not look kindly at taxpayers who owe each
year and want to do an installment agreement...

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Similar ThreadsPosted
Can taxpayer revoke installment agreement? May 22, 2008, 11:28 am
File for extension or request installment agreement, which is better? April 10, 2008, 6:03 pm
IRS Announces Installment Agreement User Fee Increases for Some Taxpayer December 29, 2006, 8:52 pm
401k Loan Default June 18, 2006, 11:48 pm
What's a "cure default" amount for a private loan? September 20, 2007, 1:00 am
Re: What's a "cure default" amount for a private loan? September 23, 2007, 7:45 pm
Re: What's a "cure default" amount for a private loan? September 25, 2007, 11:41 pm
Re: What's a "cure default" amount for a private loan? September 28, 2007, 4:00 pm
irs agreement letter January 11, 2007, 1:07 am
Separation Agreement March 24, 2008, 2:44 pm

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap