Payment Options and "Installment Agreements"

[MartyDC]

This is not a question, it's a observation of a TT "omission".

I do a tax return for a self employed taxpayer who can't afford to pay what they owe.  As a result, they have a long-standing IRS installment agreement.  (TT has a very good explanation of the 2 ways a CREATING an installment agreement if you don't currently have one, pointing out that doing it on-line is the better way.) 

A problem arises if you already have one and don't want change it.  There's no "payment option" for that circumstance.  I had to lie and choose the "I will mail a check" option.  Successfully e-filed the return but the client has no intention of sending a check.  Don't know what the IRS computers will do with this situation.   

[DianeW777]

It depends. TurboTax must comply with the IRS rules. The IRS wants you to set up enough monthly payment so the full amount of your unpaid tax balance is done by the end of the year. This doesn't mean there aren't taxpayers who are unable to do that. The main focus should be that no monthly payment is missed.

The next steps that can happen is they contact you by mail to inquire at some point later.  You could call after enough time has passed for processing your return to see if your payment plan is all set.

Lastly, it's important to know about the Taxpayer Advocate Service (TAS). They are in place to assist in situations where you are unable to obtain resolution on your own.

1. You can click here to begin: TAS Qualifier Tool. or 
2. Submit a request for assistance - Form 911 Request for TAS Assistance (instructions are included)
3. Locate the local TAS Office for your area.