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woodgiefa
New Member

If already had a payment plan set up with the IRS for owed taxes from 2020, I owe more for 2021.Do I have to set up a new payment plan?

Does existing plan automatically cover the combined balances?
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5 Replies

If already had a payment plan set up with the IRS for owed taxes from 2020, I owe more for 2021.Do I have to set up a new payment plan?

You are expected to pay in full every year.  If you can't, you have to ask for a new payment plan for the new amount.  It's not automatic. 

woodgiefa
New Member

If already had a payment plan set up with the IRS for owed taxes from 2020, I owe more for 2021.Do I have to set up a new payment plan?

Thank you! I am still paying on the original plan amount from 2020 and now owe for 2021. When I look at my account on IRS website it shows my total balance of both year's amounts together. I can't see how to start a second plan. When I go into that section it just brings me to my existing plan 

If already had a payment plan set up with the IRS for owed taxes from 2020, I owe more for 2021.Do I have to set up a new payment plan?

 

@woodgiefa 

 

Your 2021 amount you owe is due immediately.

You're supposed to contact the IRS if you can't pay in full your 2021 amount you owe.

IRS will determine whether your payment plan monthly amount can be updated.

 

Payroll withholding or estimated tax payments are supposed to make it so you don't owe the IRS on Tax Day.

woodgiefa
New Member

If already had a payment plan set up with the IRS for owed taxes from 2020, I owe more for 2021.Do I have to set up a new payment plan?

Thank you! I can't get through, I've spent countless hours trying. I even tried their chat option, was given a different phone number and assured I'd be able to get through to speak to someone. I did not. It just takes you through the prompts then says high call volume and disconnects

If already had a payment plan set up with the IRS for owed taxes from 2020, I owe more for 2021.Do I have to set up a new payment plan?

Never fear ... after you file the IRS will be in touch with you by mail about the balance due and your payments options available.   Your first payment plan will automatically be considered null & void (considered a default)  since you failed to comply with the #1 plan requirement of not owing again.  At that time one of the options will be to combine the balance dues into one payment if the IRS agrees but the monthly payment will be larger than the first for sure.   Read all about this here :  https://www.irs.gov/payments/online-payment-agreement-application

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