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Owe Fed Tax

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    Owe Fed Tax

    A new client for this year, owed tax on his 2011 return, and filed for payment option so he was making payments in 2012. There is still an outstanding balance that he owes. On 2012, he is getting a refund. Is there a way to apply a refund to the outstanding balance when filing 2012 tax return, or should he get the refund and continue to make pre-arranged monthly payments?

    Thanks,

    #2
    IRS will take care of that for him. They will apply the 2012 refund to the 2011 balance. No action on his part is required.
    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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