Can a taxpayer request at installment agreement when filing a return that's been on extension? It doesn't appear to me that it has to be filed by the original due date but I'd just like to confirm that.
Many thanks.
Many thanks.
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Per TTB, Page 15-1
"If tax owed is less than $10,000, the IRS will accept an installment agreement if (1) returns for the past five years have been timely filed and any tax due has been paid, (2) the IRS determines that the taxpayer cannot pay the tax owed when it is due, and (3 the taxpayer agrees to pay the entire amount owed within three years and to comply with the tax laws while the agreement is in effect."
It does not say anything about returns on extension. Last year, I had a client that was on extension and filed in October. She owed approx. $18,000. We requested a payment plan and it was granted. Personal observation - They just want the money and will take it any way that they can get it.:-)
LTOnly in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut". -
I agree with thomtax and then some. I've seen installment agreements accepted on extended returns, late-filed returns, and multiple-year balances. I've seen reinstatements when the t/p was already paying on an installment agreement and then came up owing the next year, which automatically defaults the original agreement. We just resubmitted and the IRS accepted it (with the appropriate fees added, of course).
As a matter of fact, I don't recall ever having seen one rejected if they owe under $10K total, regardless of how it got to the amount it reached. $10K seems to be the break point. Beyond that, things start getting more problematic."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Yes,
go ahead and send in installment agreement request based on the numbers on the
extension.ChEAr$,
Harlan Lunsford, EA n LAComment
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We do installment agreements on late filed returns going back into the 90's. If the total tax - not including P&I - is less than $25,000, you can do an I/A without submitting any docs, as long as the monthly amount is around $100 for each $5000 owed.
If it you want to make lower payments, or if it is over $25K, you need to submit financials.Comment
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