Taxpayer owes $63K in federal taxes. Was going to set up an installment agreement but the software warns that "agreement above $25K not allowable." So I am not allowed to EF the installment agreement. What is the best suggestion seeing he doesn't have the complete amount. He could pay down to $25K. Is installment agreement allowable then?
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I've seen several situations in which the client paid the balance down to get just under the $25K and then requested an automatic installment agreement.
Incidentally, being over $25K doesn't mean he can't get one - he just has to go through an application process. The under-$25K / 5yr rule just qualifies him for a streamlined process.
Also, if he's a sole proprietor, is no longer in business, and meets a few other rules, he may be eligible for a special installment agreement for up to $50K and a 6-year repayment period.
Here's the link:
Last edited by JohnH; 04-09-2012, 11:56 AM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
If he pays down to 25K then yes. However I would suggest that you get a POA and set up a payment plan directly with the IRS. Client will need to provide an income/expense form that is used for OIC purposes.Originally posted by zeros View PostBelieve nothing you have not personally researched and verified.Comment
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If he can get it down from 63K$ quickly enough to 50, then can do the installment agreement since IRS raised the thresh hold a bit.ChEAr$,
Harlan Lunsford, EA n LAComment
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