Puzzling IRS Letter

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  • erchess
    Senior Member
    • Jan 2007
    • 3513

    #1

    Puzzling IRS Letter

    A representation client and I received notification from the IRS that the client needs to make a regular monthly payment on an installment agreement. I was surprised by the notice because the payments are being made by withholding from the client's pay. Can anyone tell me whether this letter is routine in this situation or indicates that things are crossed up and need straightening out? Many thanks.
  • AJsTax
    Senior Member
    • Jun 2008
    • 629

    #2
    Check with payroll

    Administrator and make sure they are forwarding the garnishment to the proper address and on time. I have seen this type of withholding messed up more than once.
    AJ, EA

    Comment

    • ChEAr$
      Senior Member
      • Dec 2005
      • 3872

      #3
      Originally posted by erchess
      A representation client and I received notification from the IRS that the client needs to make a regular monthly payment on an installment agreement. I was surprised by the notice because the payments are being made by withholding from the client's pay. Can anyone tell me whether this letter is routine in this situation or indicates that things are crossed up and need straightening out? Many thanks.
      Something got crossed up somewhere along the line.

      You don't say which came first, the garnishment by IRS or the IA entered into between
      IRS and client.

      I can't see how an IA would even be connected to a garnishment, which is a separate
      action.

      So, which came first?
      ChEAr$,
      Harlan Lunsford, EA n LA

      Comment

      • erchess
        Senior Member
        • Jan 2007
        • 3513

        #4
        Garnishment came first

        but then it stopped and my client got and sent to HR the paperwork stopping it and putting in the withholding for the IA.

        Comment

        • ChEAr$
          Senior Member
          • Dec 2005
          • 3872

          #5
          Originally posted by erchess
          but then it stopped and my client got and sent to HR the paperwork stopping it and putting in the withholding for the IA.
          Just as I figured. In this case client will just have to wait it out until IRS paperwork catches up or maybe your contact with TAO perhaps? I don't usually advocate that course of action, but if you can't get timely satisfaction via normal channels with the collection people, it would be proper to contact them.
          ChEAr$,
          Harlan Lunsford, EA n LA

          Comment

          • erchess
            Senior Member
            • Jan 2007
            • 3513

            #6
            How big a deal is this letter?

            The Garnishment stopped promptly and as was negotiated it is only this month time tor the IA payments by withholding are to start. There's been one paycheck that should have had an IA payment and before the end of the month there will be another paycheck that should have an IA payment.

            Comment

            • ChEAr$
              Senior Member
              • Dec 2005
              • 3872

              #7
              Are you sure that IRS actually agreed to payroll withholding in connection of an IA?
              I've never heard of that happening.
              ChEAr$,
              Harlan Lunsford, EA n LA

              Comment

              • MLINDER42
                Senior Member
                • Oct 2008
                • 277

                #8
                Payroll deduction fo IA

                I have a couple of people having payroll deductions for IA.The have all come about after IRS has had a payroll lien to begin with.They were all done at the wish of collections.

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