@jmurphy-ectisp-n wrote:
The Solar ITC clearly states that it shall be applied to any current or past tax liability so it would appear that the IRS will apply it as it does any refund to the installment agreement.
No, it doesn't. Where do you see that? For one thing, there's no way to calculate it on the tax forms.
I did make one mistake above, if you are not able to use the entire credit in the year you claim it, the unused credit will carry forward to next year. It is not lost. Now, that means that it can eventually be applied to your tax debt, if you still have one, but only 1 year at a time going forward, it is never retroactive. In each future year, the leftover credit will be compared to your tax liability, any eligible amount will be applied, and any unused amount will carry forward. And if that results in a refund, the IRS will keep the refund and apply it to your installment plan. But the credit is always limited by your current year tax liability, the carryover is calculated forward only, not backward.
Or go your own way, you'll learn in the end.
