Discussion:Installment Agreement: How to add new liability to existing agreement?
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| Revision as of 21:15, 9 September 2009 SoCalEA (Talk | contribs) (Update: On 7/30) ← Previous diff |
Revision as of 21:48, 9 September 2009 Irsfixer (Talk | contribs) (You got lucky be) Next diff → |
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Revision as of 21:48, 9 September 2009
Discussion Forum Index --> Advanced Tax Questions --> Installment Agreement: How to add new liability to existing agreement?
Discussion Forum Index --> Tax Questions --> Installment Agreement: How to add new liability to existing agreement?
| 30 July 2009 | |
| I have a client who is trying to get back on track with his taxes. He currently has a plan in place for 2006/2007 taxes. Problem is that it looks like he is going to owe a lot for 2008 and with the current market conditions he is not going to be able to pay them by October 15. Is it possible to add this balance to the existing plan? Current plan is over $100k so it is with the big guns. | |
| 30 July 2009 | |
| Your client has a problem. The IA will default and there is nothing that can be done to stop it. You will be starting from scratch so charge them for a new case...seriously... | |
| 30 July 2009 | |
| Has your client paid his 2009 estimated taxes? If he wants 2008 added to the agreement, he will have to be able to show that the bleeding has stopped or you can't help him. | |
| 30 July 2009 | |
| Skassel, I disagree. It is possible to have the new liability included with the existing IA if you articulate the reasons that caused the additional liability to occur...ie the TP's current financial status | |
| 30 July 2009 | |
| Taxea, Steve did not say you could not get the new liability added, he said you will have to start over to get it done. He is correct. | |
| 30 July 2009 | |
| SoCal, sounds like you got a client with a good kind of problem, he keeps making too much money (he must be a banker).
I think the guy might be better off if he took off a year or two. P.S. MsCash, I don't think the fellow has reached the "E" section of his Chinese-English, or Arab-English, or Indian-English dictionary, because obviously, the concept of estimated taxes has escaped him. | |
| 30 July 2009 | |
| Crow: he is not a banker, just a simple mom and pop operation in a niche market that generates a lot of revenue. Unfortunately the wife did not stick to their prior accountant's tax plan and misunderstood the idea of officer's salary vs. shareholder distributions, and estimated tax payments.
I am trying to get them back on track by increasing their wages and withholdings to cover most of the estimates. Unfortunately their cash flow is really hurting because some of their LOCs and credit cards have been closed by the banks. Not that they were late on these accounts or anything. The banks have been doing this to a lot of my clients. I might need to look into lowering their installment payment but I don't know how feasible this is if I ask to have an additional $65k added to the existing agreement. Sometimes I hate working with businesses which both the wife and husband work together. I end up getting stuck in the middle of the two. I am on hold with the IRS with an estimated 15 minute wait time. I'll post the results. | |
| 30 July 2009 | |
| They can't add to the original agreement, you must stay in compliance with the terms of the original agreement, which means all future tax payments must be made on time or the agreement is revoked, and collection can commence. Reread what is being said above.
Come back some time and let us know what this niche business is. I've got to get some money set aside to buy firewood this winter! | |
| 9 September 2009 | |
| Update:
On 7/30 I spoke with the IRS and explained the situation. I was told to file the return and wait for the "balance due" notice to arrive. 09/09 Received the notice and called. I spent about 2 hours between hold and being transferred a few times. finally got the transfer to the high dollar unit and the agent was very nice. I was able to get the payment plan "amended" over the phone without filling out any additional forms, etc. I do need to mention that a 433-F was filed in January when setting up the other original plan. Perhaps this being processed recently (8 months ago) helped my cause? As Borat would say, Great Success! | |
| 9 September 2009 | |
| You got lucky because they generally require a new 433 if it is older than six months. | |
