Announcement

Collapse
No announcement yet.

Adding a new balance due to an existing payment plan

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Adding a new balance due to an existing payment plan

    Just a quick check --
    A client with an ongoing payment plan for 2017 will owe again for 2018. Is there a better way to go than just efiling and waiting for the bill/letter asking if she wants a payment plan, then replying to that to add 2018 on to what she's currently paying?
    She doesn't want to make a partial payment with her return, and I'm afraid if we request anything it'll generate a separate payment plan that she can't pay.

    (btw, no matter what I do she is unwilling to make estimated payments -- separate but related issue)

    Thank you for any quick feedback you have. Best to all in the home stretch.
    Tags: None
    #2
    She should call IRS and speak with a representative AFTER e-filing, but not wait for the letter. I handled one like this back in Feb. We waited about a week after e-filing, then the client called IRS. After about an hour on hold a live person came on the line and took care of resetting the payment arrangement with the new tax liability added to the prior year's balance. There was a reset fee of some sort, but not terribly expensive. All of this presumes your client's combined balance for both years is under the guidelines for the simple, streamlined payment arrangement.
    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

    Comment

      #3
      Great idea... I was uncomfortable with the idea of waiting for the letter.
      Thanks John!

      Comment

        #4
        The main thjing is to put the monkey on her back to deal with the issue. No sense wasting your time on it. BTW, they will most likely ask her about estimated tax payments, in an effort to insure this doesn't happen again. Tell her not to argue or respond negatively - she should just say she's "talking care of that". The representative just has to check off on their script that they asked about it and they aren't interested in any details, rationalizations, or opinions from the client. Her objective is to get the payment arrangement reset as seamlessly as possible - nothing more and nothing less.

        Personally I'd give her estimated tax forms even if she doesn't ask for them, just to document in my records that I advised her on the issue. What she does with them is her business. If she objects, I'd tell her I have to do that in order to insure that the responsibility for not paying is clearly on her.
        Last edited by JohnH; 04-03-2019, 09:05 AM.
        "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

        Comment

          #5
          IRS has always said payment plans are only good if you are current with you other taxes. Now they evidently are busy and make exceptions, but that would be based on the presentation from the taxpayer,

          Comment

          Previous template Next

          Disclaimer

          Collapse

          This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

          Working...
          X