I have a direct debit installment plan for 2017 federal taxes I owe. I just found out that I will owe money for 2018 that I will need to pay in installments, too. I have been doing some research here in the community, and online. Is my understanding correct?:
The 2018 taxes owed can be added to my installment plan.
This can be arranged through either:
1. When I submit my 2018 tax returns, the IRS will send me a letter stating that my 2017 installment plan is cancelled (by not paying 2018 taxes in April, I violated the terms of the existing installment agreement). At that point, I can contact the IRS and ask them for a new installment agreement for the total amount owed (ie both years).
Or
2. When I submit my 2018 tax returns, I can complete the form IRS 9465 Installment Agreement Request through turbotax, and include the total amount (the remaining for 2017 + estimated 2018) owed on that form.
Is one way better than the other?
