9465 installments

[Black Bart]

Anybody happen to know what IRS' policy is on a client who's already paying on an installment plan from last year? Is a new 9465 required or a note requesting it be added on to the previous one or is it done automatically or will they not do it or.....?

I and a few clients have done all of that but I usually never hear anything else about the payments they made/are making as it seems nobody wants to discuss the subject. Anyway I just wondered if there's an official policy/procedure or what.

[BP.]

From the top of the Form 9465:

Caution: Do not file this form if you are currently making payments on an installment agreement. Instead, call 1-800-829-1040.

[JohnH]

I've worked with a couple of clients in resetting the installment agreement when they are already paying on one. I just conferenced them in on a call to IRS and we explained the situation. I found IRS to be very cooperative, provided the total amount is less than $25K and they are asking for a payment which would pay it off in about 5 years. One agent even prompted the client to request a smaller payment amount than what they were planning to commit to.

Now if it's over $25K and/or if they're not staying current on the existing agreement, that might be a bit more problematic. One key point - the client should be ready to explain why this was an unusual event and that their current withholding will cover them going forward. IRS doesn't want the hole to keep getting deeper - seems like a reasonable expectation to me.

BTW, if I think they may be on an installment agreement from the prior year, I just go ahead and ask them where they stand on that issue. May as well know in advance so you're not working with a panicky client when the return goes in with a balance due and then the default letter hits their mail box. (Which usually happens the day before you're leaving on vacation)

[Black Bart]

9465

Originally Posted by BP

From the top of the Form 9465:

Quote:
Caution: Do not file this form if you are currently making payments on an installment agreement. Instead, call 1-800-829-1040.

Yeah, thanks; I saw that, but at this time of the year I'd rather walk on hot coals than hang on that particular number trying to get through to some unknowing temp clerical soul.

Originally Posted by JohnH

I've worked with a couple of clients in resetting the installment agreement when they are already paying on one. I just conferenced them in on a call to IRS and we explained the situation. I found IRS to be very cooperative, provided the total amount is less than $25K...

Also thanks, but with this particular client I want to avoid a 3-way conference, so I think I'll just stick a note in there asking them to add the new tax ($1,900) to last year's ($2,500) installment and see if they'll tack it on without talking to us and/or see what the mail brings. Might get lucky -- or more likely the usual bill and nothing else (an agent once told me they are required to first send taxpayers a bill for the whole thing even if the plan's granted and that it caused lots of problems because it usually arrives before the installment agreement letter and makes taxpayers think they've been declined).

[BP.]

at this time of the year I'd rather walk on hot coals than hang on that particular number trying to get through to some unknowing temp clerical soul.

So true. Can this be client's job to call and sort out? Your plan sounds like a good one.

[taxea]

Burke that number is for the tax payer. I do the IA and have the client send in the first payment. Get a POA and after about 6 weeks call the collections number to ask them to combine the two into one IA.
As long as the total is under 25K it is usually no problem.
I gotta say I keep waitingb for the IRS to put out an amnesty program...I may suggest it. Waive all penalty and interest, put a 3 to 6 monthslimit on setting it up ( 30 days is just not acceptable) and allow IA without interest to pay it off. I bet they would get tons of money in.