If I have an existing installment plan with the IRS from a previous year will this years owed taxes automatically be added to that payment plan?

Forum|Forum|4 years ago
February 10, 2022
6 replies
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In a November 2021 brief released by the IRS they state "The IRS will automatically add certain new tax balances to existing Installment Agreements, for individual and out of business taxpayers. This taxpayer-friendly approach will occur instead of defaulting the agreement, which can complicate matters for those trying to pay their taxes." There is no clarification on what these "certain new tax balances" are.

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Critter-3

Level 15

The current year form 1040 balance due certainly qualifies. But I would expect the IRS to send you out some kind of notice (could take more than 6 weeks to do so) since you agreed when you got on the payment plan that you would not get behind again ... doing so used to void the old payment plan. Read up here : https://www.irs.gov/taxtopics/tc202

Critter-3

Level 15

I found where you found the original info ... that was part of the covid relief efforts ... you would need to ask the IRS directly what this statement actually means : https://www.irs.gov/newsroom/irs-makes-it-easier-to-set-up-payment-agreements-offers-other-relief-to-taxpayers-struggling-with-tax-debts

peaceloveandjoiAuthor

Level 2

Thanks for your response. In the brief it states "Following up on our People First Initiative earlier this year, this next phase of our efforts will help with further taxpayer relief efforts." This led me to believe that these actions were next steps beyond the People First Initiative which ended in July 2020. Regardless, it doesn't seem that there has been any official clarification on this point which means I'm, unfortunately, going to need to call them directly.