Payment to IRS

[oceanlovin'ea]

A client wanted to know if he could have the amount he owed to IRS for this years taxes taken out of his paycheck.

I told him that I thought that the only way IRS took money from someone's paycheck was wage garnishment for not paying back taxes.

Does anyone know for sure about this? I will call IRS tomorrow and ask them. But just thought I would ask the board.

Linda F

[ChEAr$]

You are correct

After all, IRS has nothing to gain. You might mention to client he can pay with
credit card, or if the amount is significant, under 25,000 go for an automatic
installment agreement.

[WhiteOleander]

If you have an installment agreement, the IRS will draft your account each month for the payment.

But, they are not very efficient at getting to started. But, after they do get it all set-up, it seems to work well. Just make sure the funds are in the account.

[S T]

IRS Payments

I think if for 2005 tax return, he needs to arrange an installment agreement, then IRS will draft from his account, but not from payroll unless there is a levy.

If for the current 2006 tax return, either installment agreement, go to his bank and obtain a loan, or pay the extra dollars through the credit card charge.

Maybe you could offer assistance for this client to change his withholding if he has wages, or set him up on estimated tax payments.

Sandy

[GIMoe]

Direct withdrawal

I was under the impression that the IRS can do a direct debit from taxpayer's account for entire amount, without having to setup an installment agreement.

[Dervis]

Debit

I was under the impression that the IRS can do a direct debit from taxpayer's account for entire amount, without having to setup an installment agreement.

That's correct. I've set up several of these already this tax season, where their balance due is debited from their checking account. You can choose which day this will happen.