In the IRS's instructions, they mention allowing an included deposit to be applied to the tax debt if the offer is not accepted.
But at same time for low income tax payers they specifically instruct you to not include first payment. So when you write "Your offer must accompany the paperwork, it cannot be filed separately" maybe you mean in the case of not requesting the IRS to handle you as low income tax payer?
So in my case, I want to "include" a deposit in some sense, but instead just pay up front by EFT. In the IRS's eyes it should be equivalent to checking off the 2nd box on the offer that says "If your offer is rejected, returned, or withdrawn please check one of the boxes below and let us know what you would like us to do with your deposit. Return it to you ( Initial here ) Apply it to your tax debt ( Initial here )"
In the end the bookkeeping should be identical, since if they accept, they see my EFT verification and can check off in their books paid, and if they don't accept, I would have effectively already given them the green light to "Apply it to your tax debt" (as it would already be applied at that point) with added bonus to me as the taxpayer of getting that payment credited up front and reducing my debt.
In a way similar to sending first payment with tax return. I mailed return yesterday but didn't send check. I made payment online and sent them my payment verification. Just thinking out loud.
Anyway, on hold with IRS now, will see what they say... though already on hold for an hour!
thanks
