Installment Agreement and Shared Responsibility Payment

[geekgirldany]

Client has a installment agreement for TY 2010. He has been paying on time no problems. TY 2016 he owed "regular" tax and had a ACA penalty. This was before the "silent return" option. Taxpayer does not want to pay it based on the president's executive order. He believes the IRS should not be trying to collect it. So he paid the tax owed and not the ACA penalty.

The IRS has now added the Shared Responsibility Payment to his Installment Agreement. He received his monthly notice to pay and it is now included. No penalties showing but interest is starting to accrue on the amount.

My thinking was that they can't lien or levy to collect so I assumed they would only take future refunds to pay. Plus I read they can not cancel a Installment agreement because of the penalty.

Has anyone heard of this being included automatically on Installment Agreements?

He owes on the 2010 tax original amount about $2,000 and has thought about borrowing the money some way to pay it off.
If he decides to do this, puts in the memo of the check that it is for TY 2010... will the amount be applied only to that year and not the ACA penalty?
From my reading it would but I would like to make sure.

Would appreciate any input and help.

[taxea]

When the "silent return" ruling came out they said it could be used but the IRS will add the information to the return so not paying it was an option with the understanding the IRS would address it when the return was filed.

[Rapid Robert]

Someone wrote "This was before the "silent return" option. Taxpayer does not want to pay it based on the president's executive order."

IRS has always accepted for efiling "silent returns" with regard to the ACA coverage mandate, so there is no "before the silent return" option. The IRS has already responded in writing to the Executive Order and there is no connection between that and the continuation of accepting "silent returns", which began long before the current administration.

Per IRM 5.14.11.3, a new SRP won't default an existing installment agreement. Elsewhere I see that it must be included in a revised or new installment agreement, however.

Also see: 5.14.1.1

"If the taxpayer does not want the new Individual SRP module(MFT 35/Mirrored MFT 65) added to the existing IA, then the Individual SRP module will be moved to recess (TC 530 cc 35). This will happen systemically if no action is taken, and the case will not be assigned to ACS or Field Collection. Note: The case will continue to be subject to refund offset if the taxpayer does not request to have the MFT 35/Mirrored MFT 65 included in the IA. Note: A subsequent MFT 35/Mirrored MFT 65 will not default an existing IA. "

[geekgirldany]

Someone wrote "This was before the "silent return" option. Taxpayer does not want to pay it based on the president's executive order."

Thank you both for responding. I said "before the silent return option".... I was thinking of my tax program's ability to not include it on the tax return compared to prior year.